In FX trading, “stop-loss” is a crucial element that separates success from failure. Especially for beginners, holding losing positions for too long often leads to significant losses.
Every trader believes they can control risk, until the market reminds them otherwise. This sobering thought underlies the illusion of control in trading. We set entry points, study charts, and place stop orders as if we command the outcome. In reality, technical tools can only control our decisions, not the market itself!
When engaging in FX (foreign exchange margin trading), “risk management” is something you cannot avoid. Among the most important aspects of this is the “Margin Call,” known in Japanese as “追証 (Oishō).”
In FX trading, the concepts of “loss cut” and “forced loss cut” are unavoidable. While many traders have heard these terms, fewer truly understand how they work and why they are so important.
Success in trading rarely happens by accident. It usually grows out of doing the right things, over and over again. That’s where having a routine makes all the difference.
