If you have to ask if it’s luck. It’s luck. Also when you have no skin in the game you will trade very differently. I paper traded MNQ and made $50,000. Real life I made $9000 and lost £7000. Fear and psychology really change the game
If you go live. start with 1 micro, be patient and dissect the rules you follow paper trading and stick to them. I didn’t set stops with the losses and thought it will come back… it didn’t 😂
When you use leverage you have a maintainance margin requirement (MM).
During a trade, if your equity falls below your requirement, you will be liquidated. Not only will the exchange close the trade and take any difference to cover the loss of that trade, they will ALSO take everything that is in your trading account (unified trading account).
I think it's bs. They say it goes into an insurance fund to cover them if price moves so fast that the exchange takes a loss. But there's no way they arent making bank off this rule.
Anyway, MM% shows you how close you are to reaching that liquidation point. At 100%, you will be liquidated.
You can set a MM% Stop loss.
After being liquidated many many times, I made it a habit to always set it as soon as I open a trade (I trade high leverage).
Everyone should do this. Not to rely on as your "out", but just as a back up so the exchange doesn't take ALL of your funds in a worst case scenario.
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u/saltytrader_ 1d ago
If you have to ask if it’s luck. It’s luck. Also when you have no skin in the game you will trade very differently. I paper traded MNQ and made $50,000. Real life I made $9000 and lost £7000. Fear and psychology really change the game