3 Ways to Lose Money In Forex!!!!

We are all very clear on how the forex market can be a lucrative industry where millionaires are created every single day....

However, we must also remember that there are even more traders out there that have lost their entire life savings as well.

So today, let's look at 3 ways you can LOSE MONEY In FOREX

1. Trading Without A Clue

When you trade Forex without a CLUE, you are virtually gambling your money away.

It is better to head To Las Vegas or a casino near you.

At least you might have a good time gambling away the night instead of facing your silly computer looking at the charts which you have no idea on what is going on whatsoever.

When you have no fundamental or technical knowledge about the forex market, you are probably just guessing which direction the currency pair will go.

If it heads according to your direction, all is good.

If not, you will have a rough day.

Clueless trading has been proven to lead to bad habits in trading.

For example, over trading.


2. Trading Without Patience

This is another reason where many traders would lose money.

This usually happens when traders are too eager to enter the market instead of waiting for the perfect time to execute their trade.

Trading impatiently will cause traders to enter the price when it is too high or too low.

This decreases their chances of winning the trade.

This nornally leads to you as a trader to open moe positions and this is a huge danger if the market is going strongly against you.


3) No Proper Money Management

This is probably the number 1 reason why forex margin accounts blow up. Long time readers of the website will know that i had 3 margin calls before. OUCH!

Scenario A

A high risk of 20% per trade.

$1000 > 1 losing trade > $800 > 1 losing trade > $640 > 1 losing trade > $512

Just 3 losing trades would have wipe out almost half your margin account.

Scenario B

A proper money management approach of 2% per trade.

$1000 > 1 losing trade > $980 > 1 losing trade > $960.40 > 1 losing trade > $941.20

3 losing trades would have wipe out only 5.9% of your margin account, leaving plenty to spare for your forex journey.

It is common to lose 3 trades in a row in forex.


Hope this makes sense

 Yours sincerely,




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