If traders lose more than their initial investment, it is possible the broker offers high leverage and trader choose high leverage let say 1:1000, ideally choose high leverage if open any order will need the smallest margin requirement and could make them open bigger lot size, on another side, it will quickly reduce margin level when the balance is too small and they only eligible to open smallest position size, it possible when face margin call account then end balance become negative or losing more than the initial investment. maybe because price moving fast and brokers face delays in executing orders. so choosing low leverage will be safer than high leverage
90% failing rate , its true ?
- Thread starter Ahmed Solaiman
- Start date
its a very fine reply with more detail. thanks for nice post
Basically, high trading leverage is always risky! According to my own trading experience, I see most of gamblers would like to use high trading leverage since, their intention is making a huge money by using their tiny trading capital! But the intention of genuine traders is always different, they always prefer the low trading leverage, since they know the value of money management plan!
Yes probably traders choose high leverage because want to make huge profits in a short time use small capital, maybe one luck could give them a huge profit, but not for the long run, while luck will never come all the time.
I co-owner a brokerage in mid 90's for 10 months, very hard work back then to sign up customers as Big S&P was $500 a point and margins were $13,000. But in 10 months we had over 100 people open accounts, after 10 months, only one's still open we're handful doing long term futures. So yes I believe it was 95% back then and even higher today.
People don't see this as a business, they quick to open accounts and start trading, what they don't realize is the game is fixed. Those with greatest knowledge plus automation, have done extensive work before putting money on the line.
There are few individuals that do the work and or gifted intelligence come out with profits, but rest are bait.
Why are you asking about a stock trading platform in the Forex section? GAME PENALTY!
https://www.elitetrader.com/et/forums/stocks.51/
Here's a helpful-handy tip. LEARN the forum you are joining.
You're welcome. It takes only two minutes, by the way...
90% is a big number, but it is a hard reality of forex trading. Why so many traders fail has something to do with their trading goals and strategies. Traders who start forex trading with unrealistic goals come up with unrealistic strategies, which result in losses. Things will definitely change if traders have realistic goals in trading because then, they will be able to trade with better strategies and even survive at a time of multiple trade losses.