Forex is the largest currency market in the world. More than trillion dollar transaction in every day. It is the most profitable business of the world. On the other hand forex trading is the most risky business in the world. More than more than 80% of beginner Forex traders lose ALL of their money . Because First,
Why do so many beginner Forex traders lose all of their money?
Most of the traders that enter forex market don’t get proper knowledge about trading. They believe that its easy to trade and they can start making money easily once they get going on. But in reality is opposite of them and they completely fail.
Proper Trading Experience
Majority of beginner forex traders have no experience on trading in forex market. They direct join real market & finally they lose all deposit. Every beginner should to try to gather experience on demo trading.
Trade with big lot size
Money management is the important factor in forex market. Most of the beginner can’t understand proper money management system. They trade with big lot size. They do not look on their capital. As a result in short time they will looser.
Trade one more lot at a time
Forex market is very sensitive market. So every trader should to trade here very carefully. A new Forex trader can’t not understand trading policy, they open one more trade at a time. More trading is harmful for forex business. They can’t control themselves that’s why they lose their first investment easily.
Emotion & Greediness
Emotion & greediness is the main enemy in forex trading. Most of the beginner trade here by emotionally. When they take profit something. They start non stop trading & they don’t control their greed . Then they lose money within short time.
Most of the beginner stat forex with very small capital. More than trillion dollar trade here every day. When a trader start trading with small capital they always fall in risk.
Risk too much per trade
They take risk too much per trade. Because they’re blinded by the potential profit. Finally they lose money and try to understand their mistake.
Always overconfidence is not good. Overconfidence also another reason for beginner Forex traders lose ALL of their money.
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