FeroxWealth
Education

Why Most Forex Traders Fail... LEVERAGE

FX:EURUSD   Euro/U.S. Dollar
Way too many traders trade with very little capital and they do this because their brokers allow them to by offering them insane amounts of leverage. We really don't understand it because you would think that these brokers would want their clients to succeed in order to continue placing trades which yields the broker revenue from commissions and spreads. It is inevitable that with such little capital ($50-$100) these traders will go bust and blow their accounts, especially if they are allowed to take position sizes of upwards of 500 times their account value. These retail traders have been conditioned to believe that this is the way Forex trading is and quite frankly it isn't. The most successful Forex traders in the game use little to NO leverage at all and they only return a small consistent return of 1-3% per month. It seems impossible to make money with such small returns but if you actually take the time to break out a calculator and calculate how much such a return yields over extended periods of time like 5 years or 10 years you will see it is immense. Take $10,000... in 8 years with a consistent 5% a month return... that $10,000 will become $1,000,000.

So please guys read through the information on the chart. It is long but it is very valuable!

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if newbies start with 100€ accounts and only trade 0.01% is pointless, you wont make anything, unless have a +10k capital
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You would never trade .01% you would trade 1%... which yes might seem pointless with $100 equity but Forex is not meant for someone who can only afford to fund their account with $100. You cannot expect to turn $100 into millions... A few percent return each month consistently is enough to build wealth over time.
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karabogerald FeroxWealth
Urg Please, i deposited $25 turned it into, $300, and then into $5000, and then $7000 using Leverage of 1:888. (this was in the course of 1.3 years). / now I let my EA do the work on 0.10 lots, While I do bigger lots Sizes. || (Leverage has nothing to do with Loss, its a competitive tool), Leverage just puts us all on the Same Level (you place a $100 position from your big account, I also place my $100 position from my small account (using Leverage) the market cannot tell a difference / know we on the same Level. .

A Lousy-Trader, is a Lousy-Trader.

Problem with People & Leverage is, they open up to many positions. When your account is Small and your Using Leverage, Trade smart, Hold One Position. (In Forex, They isn't a single position that can Kill your Account, if they is, your doing something really Wrong. (seriously). .

& Also Hedge your position when you fell a loss, (If you went LONG and its Going Against you, go SHORT, to recover and Minimize Your Loss).

Here is my Advise:

If your Account is $5 to $100
- Trade 0.01 lot (Single position at a time). tight SL & TP

then $100 to $200
- Trade 0.02 lot (Single position at a time). tight SL & TP

then $200 to $500
- Trade 0.05 lot (Single position at a time). tight SL & TP

& don't develop trigger fingers of try to trade everyday, trade when the market is in your favor.

& Lastly.... Respect Support & Resistance, all TPs & SLs should be taken there.


[ And FOREX is meant for everybody, Big or Small Accounts, I Know alot of Big Account Traders who blow their accounts, FOREX has no friend, Big or Small Account, Forex Doesn't Really Care, Big Account GOOD FOR YOU, Small Account use Leverage.



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I have a lot of love for this post- as someone who uses 30:1 leverage himself, I cannot stress enough how important low leverage is
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FeroxWealth Gekko.uk
Thank you for the words man. It is important to find what works for you as an individual trader and it is fine to use leverage once you know what you are doing, but so many traders start off using such high leverage they are bound to fail.
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amazing really helpful!
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FeroxWealth TRADINGYOUNG
Thank you for the words! I'm glad you found it helpful! Make sure your following we will be posting trade ideas and teachings like this. Also check us out on YouTube we do live streams Monday, Wednesday, and Friday at 7 pm est: https://goo.gl/g8sWn3
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This was a very helpful and informative article. Thank you for posting!

Best,
Donald
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FeroxWealth DonaldBradley
Thank you for the words Donald I am glad to see you found it to be insightful!
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This post has a point, but seriously, nothing is really going to stop a "lousy-trader" from losing all the money anyway...; Lets compare "Lousy-Trader A" versus "Lousy-Trader B";

"Lousy-Trader A" decided to deposit just only $1000 into his trading account (because he/she does not feel confident yet to deposit more) ... But "Lousy-Trader B" decided to deposit all $10,000 into his trading account (which is definitely 10 times more cool yeah!)... So they both started to trade the same currency pair (using the exact same leverage & exact same amount to risk);

"Lousy-Trader A" risked $500 per-trade; but his prediction went wrong & he lost it... (SL hit)
"Lousy-Trader B" also risked $500 per-trade; & he also got it wrong & lost it... (SL hit)

On the second trade attempt; the exact same thing happened; both traders got it wrong & lost another $500 once again... (SL hit)

Right now "Lousy-Trader B" still has $9000 left inside his trading account (still looking very strong yeah!)
But "Lousy-Trader A" already has nothing left so he has to go & make deposit once again; he decided to deposit another $1000 again...

Once again both of them risked $500 for another new trade, but they both got it wrong & lost another $500 once again... (SL hit)
They went on to try another different trade, risked $500 for that trade again, but both traders got it wrong & lost $500 yet again... (SL hit)

So "Lousy-Trader A" (as usual) has to go to top-up (another $1000) into his trading account yet again (because there's nothing left in it), but "Lousy-Trader B" is still boasting that he still has alot ($8000 left inside his trading account right now)!

Well, as both traders continued to trade; the same s**t kept on happening & they both still kept on losing $500 (yet again & again per-trade) for every new trade attempts made...

So what happened in the end...? Well it really doesn't matter; whether you have $1000 or (10-times more than that) inside your trading account; because at the end of the day; nothing can really stop a "lousy-trader" from ultimately losing everything at the end of the day anyway; (so no point in talking about having big $50,000 or $100,000 amount inside one's trading account as well; because it will just make "a lousy trader" die much slower actually...; with more reasons to continue losing even more $$$$ in the long run...?)...

Have a good day.
Best regards.
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