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Does meeting margin call money requirement conveys something for a Trader?

Posted By On 5/05/2008 03:10:00 PM
1. In case one has got the margin call from the broker than one must understand that one is wrong and thus one must make sure that one admits the mistake and take the remedial action.

2. However contrary to that people fulfill the margin calls obligations just to make sure that they are not wrong. Thus one can be sure that more than 50 percent of the time when an individual meets the margin call one is likely to be wrong and will in turn will be increasing the losses.

3. Thus the moral of the whole story is that when one goes wrong one must admit the same and should avoid meeting the amrgin call as when one is meeting the margin call one is hoping against hope that the market will go in his direction. Thus the best action is to close loss making positions and be ready to face the world with a fact that an individual was wrong.

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