Webcast & Podcast

On this page I will share with you my valuable experience on the subject of trading and fraud or dangerousness. I have been active in the financial markets for more than 7 years and have experienced low points as well as high points. In the following points I will explain you step by step about the topic "trading". Is it really worthwhile to deal with it? What are the chances of making a profit? - These questions and many more topics will be discussed by me.

Be aware of the risk in trading

Stock market trading is risky. You cannot make money on the stock market without taking a risk. In trading you buy a value on the financial markets and try to sell this value again with a profit. The market is always looking for a fair price according to supply and demand. The number of orders and the trading volume of the participants determine the price.

As a private trader you try to predict the future or make an investment in Metatrader 4 because you are convinced of a company, commodity or other asset class. The price fluctuates daily and can also lose value. As a trader, you take the risk that the price trend can also go against you. The invested capital can be lost and in the worst case debts can be built up with it (more about this in the next point).

In summary, with this first point I just want to tell you that you should be aware of the risk that you can also suffer losses. There are winners and losers in the stock market. However, to our advantage, there are risk management tools. For example, the stop loss limits your loss. It can be set for each order.

Debts through trading are possible

With certain financial products it is possible to make debts. These include futures, shares (short selling) or other derivatives. A well-known example of this is the negative oil price from 2020. Traders bought futures when the oil price was very low and the price then went into negative territory. Tough losses were incurred because the trader could not close the position because the broker could not give execution. (Report of $104 million loss for Interactive Brokers).

The traders were very lucky that the broker covered the losses. However, this is not always the case. It is possible to incur debt with derivatives and bring the account balance into a negative balance. This happens in extreme market situations. An example of this can be closed markets. The markets then open at different prices and the current trading position is extremely negative. This results in gaps in the market.

The following applies: For trading, 2 players must always be active - a buyer and a seller. If one side is missing, the trader's order cannot be executed. However, to your advantage, regulations have abolished the margin requirement for the popular Forex and CFD products. In addition, brokers have various safety mechanisms that automatically close your positions and save you from debts. Only in very extreme situations and if you are not careful, you may incur debts with specific financial products.