X.12. Trading without using stop orders. Long money and its advantages.

Indeed, it is possible to eliminate many problems associated with stops if you use long money or it is easier to sit out unfavorable periods of price movement.

This means that if you are in a leveraged or short-term credit position, the broker will require an increase in the margin on the account to exclude a “margin call” (margin replenishment requirement). You just add money to the account and can sit in the position further. Also, if things are bad, you can always reset part of the position, if you still see the expediency of further hatching, and there is no money to replenish the margin. When the price moves in the right direction, just dial the desired number of lots. You can also use hedging at the moments of price drawdown. Hedging also requires margin replenishment, because a short order is being placed for incubation in the long.

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