1. Less Trading Experience.

2010-10-21T19:49:00.000-07:00

Learning about the currency markets and basic trading principles is basically on a trial and error base.

Note it is absolutely necessary to know what will happen, if you go wrong in your trades, how the market behaves, how to safeguard yourself etc….

In Forex trading "NEVER" follow the policy "Earn while you learn". Most of the people lose money since they will try to earn during their learning curve.

First learn the basic skills for trading and analysis and then go into the market. The learning time depends on individual's caliber, seriousness and the amount of time spending to gain knowledge. Some people take a couple of months to understand and start trading while some others will take a few days only.

So to me the “Trading Experience” can be defined as – “Learn how to travel along with the market”.

will be continued....

General Ways where the people lose money in Forex Trading

2010-10-21T02:51:00.000-07:00

Forex trading - like any new initiative - has a learning curve.

This is not a “get-rich quick” scheme...But obviously you can start earning with a little investment...when i say little i mean it....even with as little as $50.

But most of the people start with a good amount of investment, loose the money and later they will “Quit” the market.

Yes Currency Market has a huge potential and people are earning daily for their living...You can also achieve this ...But for sure this does not happen over night.

To me - "if you eliminate/minimize your losses, the profit will come automatically".

So we will try to discuss the why people lose money in Forex.

1.Less Trading Experience
2.High Expectations from mkt in your favour
3.No Proper Trading Plan
4.Lack of Discipline
5.Non inclusion Stop-Loss and Take-Profit
6.Utilizing High Leverage with out Risk Mgmt
7.Opening Too Many Trades at Same Time
8.Keep Losing Positions Too Long
9.High Spread Fluctuations
10.Greed

The explanations for each of the point will be posted soon.

Addus Forex Corner

1. Less Trading Experience.

General Ways where the people lose money in Forex Trading