Lossing is part and parcel of our forex journey and we all just need to get over that and get on with our life. I have wiped out more trading accounts than I can remember and one of them involved a significant amount of US$... not going to mention the amount, but let's just say it's fairly large.... in matter of seconds as I helplessly watched as multiple opened positions are force-closed one after another due to Stop-out.
You need to treat trading the forex market as an investment rather than get-rich gambling mindset of a lot, if not most new Traders a.k.a Newbies. Turning a US$100 into US$1m, though theoretically possible, is not going to get you anywhere and will in all likelihood kill your trading account in no time.
Always try to start with a well-funded trading account like, if you can afford it, US$6,000. Making just US$6 per trading day will equates US$1,560 per year ... i.e. 52 weeks x 5 trading days=260 days x US$6=US$1,560.00
If you start on a US$6,000 trading account, that's a mere 0.10% profits per day that equates 26% yearly increase in your US$6k investment which no bank in the world can or will give you for your fixed-deposit bank account.
Here is a sample & simplified calculation on your US$6,000 investment:
View attachment 91070
Is it really that difficult to make US$6 per day on a US$6k trading account? Or even US$54 and US$102? Most days we can make much more than that if we have carried out due research on the currency pair(s) we plan to trade for the day or week and trade max 2-3 different currency pairs at any one time.
The most important things you must have are: 1)
Discipline (stick to your plan & strategy) and never over trade (i.e. opening too many positions), 2)
Patience (i.e. wait for your entry and exit points), 3)
Always have a well-funded trading account which should be toped-up whenever possible, and 4)
Keep well informed on the economies & geopolitical news of countries which currency you are trading.
Greed is the greatest downfall of all Newbies who, just because they have a few good winning streaks, think and believe they cannot lose. Inevitably, trading accounts of Newbies are wiped out due to their false sense of superiority from their initial successes.
Wishing you a pleasant and successful Forex journey.
