Released on = March 29, 2006, 8:12 am

Press Release Author = Day Trade Forex, LLC

Industry = Small Business

Press Release Summary = A good rule of thumb for either a mini-account or standard
forex account, is to limit your margin usage for each trade to 5% - 10% of your
usable margin.

Press Release Body = A good rule of thumb for either a mini-account or standard
forex account, is to limit your margin usage for each trade to 5% - 10% of your
usable margin.
As your account grows and your usable margin grows, you can increase your margin
usage and trade bigger mini or full lot sizes. If you lose money and your account
shrinks, drop your margin usage back down to smaller sizes. You need to learn to
keep your eye on your usable margin, especially if you've suffered some losses.
Protect your usable Margin by not having more than 2 open hedged or unhedged
position at any one time. Your usable margin & equity will get eaten up by un-hedged
open positions that go bad in the wrong direction...this is a really good reason why
you want to use stops, and if you hedge, hedge tightly.
IMPORTANT: Don\'t just keep putting on positions because you think it\'s a good
opportunity. First sell a position and book some usable margin before you put on
another position.
NOTE: Hedging does not use up more margin! Use it to protect your equity & usable
margin, esp. in an emergency situation!
If you break the hedging rules, and your positions go against you and you aren\'t
properly hedged with stop losses, you\'ll quickly see your usable margin degrade.
If it degrades enough so that your usable margin goes into the negative, you\'ll get
a margin call. This means that the operators will automatically start selling some
of your lots in your oldest losing positions in order to beef up your usable margin.
This makes your unrealized loss become a realized loss...and the money is gone from
your account.
If you lose too much useable margin, they won\'t even let you trade in your account,
the message they\'ll give you when you try to put on a new trade is, \'Account in
Untradeable Condition\'.
If this happens, you might have an open position that needs to be hedged immediately
or you might need to sell an old position. Or you might need to deposit more money
into your account. Then you can start trading smaller lots to win back some usable
margin.
You can lose your entire account balance if you\'re not careful. One good thing about
forex trading is that you will never lose more money than is in your account, you
won\'t have to sell your house if you get a margin call! Stick to the rules above and
this won\'t happen to you.
Cynthia Macy is co-author of 'The Day Trade Forex System: The Ultimate Step-By-Step
Guide To Online Currency Trading'.
http://www.daytrade-forex.com
http://www.successtrading2000.com
http://www.professionalforextrading.info
http://www.shorterminvestingsite.com
http://www.daytradeforex.com/products.htm



Web Site = http://www.daytradeforex.com/products.htm

Contact Details = Cynthia Macy or Erol Bortucene||2424 Pioneer Ave. Suite
405||Cheyenne ,
82001||$$country||||928-639-1330||daytradeforex@daytradeforex.com||http://www.daytradeforex.com/products.htm