Let’s not forget how some of the traders consider leverage to be their holy grail and end up getting a high leverage which eventually magnifies not only their losses but also increases their transaction costs. Statistically speaking, if a trader with a $500 mini account goes for a 100:1 leverage and buys 5 mini lots with 5 pip spread, he eventually sold $25 as transaction expense. Now, even before his trade starts, he has to plan on making the right moves to cover his transaction expense and also gain profit. Another aspect they don’t realize is that the transaction value increases with the drop in the account value.
This is the reason why experienced traders stress on practicing skills on demo accounts. There are platforms where they can practice trading and get an idea about the best currency pairs to trade, when to place the stop-limit, right time to enter and exit the trade, margin average and more. Not just this, they’ll also learn which platform - MT4 or MT5 suits their trading strategies since brokers like Oanda, XM, and Fxview among many others offer different platforms.
loss is a very common thing that we of course we have to face , no way to avoid it in spite of having good knowledge and experience. so we should take loss easily.
Forex trading is risky, and this is the fact if make a profit consistently is no an easy task, but forex trading still becomes an interesting business as one way to getting income with a flexible time and place, because the trader can start anytime and anywhere, no need to hire office room.
Due to the fact that many are negligent about this work, they end up disappointed and talk about the unprofitability of this market.
Many newcomers come to Forex for big and quick earnings first of all. They want to quickly learn just the basics of analysis and earn a lot, but this does not happen in any serious business.