Account Health

Account health is an overall assessment of your trading account's stability, including your margin levels, risk exposure, and equity growth. A healthy account is one that is well-collateralized, not over-leveraged, and steadily growing.

A poor health account is one that is constantly hitting margin calls, is highly concentrated in one risky asset, and is seeing its value shrink. As a trader, you want to maintain your account's health above all else.

This means making disciplined decisions and avoiding high-risk behaviors. It is a fundamental part of the professional trader's mindset.

When your account health is good, you can focus on finding the best trading opportunities without worrying about a forced liquidation. When it is poor, you are forced to focus on survival rather than profit.

Always monitor your account health and make the necessary adjustments to keep it in tip-top shape. It is the most important thing you can do for your trading career.