Lesson 5: Why People Fail in FOREX Market

Welcome to Forex lesson series and hope you have followed Lesson 1,2,3 and 4. If not, pls go through those links. Also you have to create trading account under me. If not pls follow this link.

Because you will receive many benefits if you register under me. OK.. let's start the today lesson. Actually this is very important topic. You can find many people who lose there money since Forex trading. Everything has a reason. So I will explain point by point.

First I have to say that the main reason for people fail in Forex trading is their psychological factors. As examples emotional when making trades, loss patience, unwanted fear, too much hopes, 

Excitement, lack of discipline. 

Other reasons are lack of capital, lack of knowledge. Investing enough capital is your work but here we can improve your knowledge😊. I like to describe these factors using a practical example.

Above chart shows how eur/usd rate change within few periods. So you can see A to C market was sell, it means rate goes down. Now think you are with a 100$ investment under 1:1000 leverage. So now your MT4 (trading platform) balance is 100$. So you open buy trading at point B(eur/usd =1.2300 at point B) with a volume 0.1. If you follow my lessons well now you can find how much actually need for this trading. It is 12.3$  ⇒ {1.2300*100,000*0.1/1000 $}. Follow this lesson to learn.. 

So you hope market will rise at point B, but it doesn't happened. So for each pip market goes down you will reduce 1$  ⇒ {0.0001*100,000*0.1$}. When market down in 10 pips your account balance is 90$(100$- 1*10$). Imagine what will happen market fall in 100 pips. 😓You will lose money {100$ - 1*100$ = 0$}. So tell me what is your fault? Is it your first decision, thinking market goes up at point B? No It's not. You take good decision there. But your volume (0.1) it's wrong. Also mental facts  like you don't like to close a trade with a lose. Because you had a chance to close trade when it goes wrong path. It mean if you close trade after falling market 25 pips, your balance is 75$😦. Then you can open a trade at point C as a buy trade and earn profit😐. OK to explain it more, lets think you close above trade when 25 pips fall. Now your new balance is 75$. You wait few time and you feel that market will buy at point C. So you made a trade with volume 0.1 again. So when market rise up to B, you have earn more than 25 pips. Here it likes 50 pips. So you have earn 50$ (50*0.1) profit and now your balance 125$ (75+50$)😃. I think you may understand important of decision.

Now think above example you open a trade at point B with 0.01 volume. So for each pip market goes down you will reduce 0.1$  ⇒ {0.0001*100,000*0.01$}. So this time, to lose your money market should fall in more than 1000 pips. It means you have good strength now. Here also you have freedom to open more trades like point E. This example shows that if traders invest low amount they can survive here by opening long-term low volume trades or opening short-term high volume trades.

There are many trading strategies and methods available. To get everything you need to make a trading account with us under this link  ⇒ Link. Once you register for trading account, you can open demo account within few seconds and start practice if you want.

This is ending of Lesson 5, add comment if you have any question related with this. I hope you will get this better chance by registering under me. So, see you with Lesson 6.

Good day...!!!