Price Action Learning Strategy
I'm looking to get into trading the stock market. Now I know that with Forex it's possible to lose more than you invest if there's, for example, a huge swing in the market and the broker is not on time when canceling the trade at your stop loss.
Does anyone know if this is possible with stocks as well? I personally assume that it's not possible and that the biggest risk would be losing everything you invest, but I don't know if there are any hidden problems.
I also don't plan on using any leverage.
If you use other methods like the short sell, however, you can lose an unknown amount of money. When short selling, you're selling a stock before you buy it (in other words, you are selling borrowed stock). Say, you short sell a stock at $100 (betting on it going down).
A trader was concerned about his inconsistent performance. He asked for help with sticking to a set routine. When I gathered background information, it turned out that he had significant symptoms of depression and a family history of depression. Because he did not have a full-blown major depressive disorder, he assumed that his inconsistencies of mood and energy level were simple lapses of discipline.
If you use other methods like the short sell, however, you can lose an unknown amount of money. When short selling, you're selling a stock before you buy it (in other words, you are selling borrowed stock). Say, you short sell a stock at $100 (betting on it going down). If the stock goes up to $200, you now are down $100. If the stock goes to $5000, you are down $4900. What will likely happen before that, is that your broker will force you to exit the trade because of you not having enough equity to cover the loss.