trading. First he traded for Soros Quantum Fund where his first deal was a multimillion and then 2 billion purchase of German marks. tutorial: Top 10 Forex Trading Rules, get Rich Quick. Platform or System Malfunction : Imagine your plight if you have a large position and are unable to close a trade because of a platform malfunction or system failure, which could be anything from a power outage to an Internet overload or computer crash.
While this could be interpreted to mean that about one in three traders does not lose money trading currencies, that's not the same as getting rich trading forex. And, of course, George Soros. By focusing on money management a trader takes their trading to next level, ignoring money management means immanent failure, even with the best strategy. He always knows when to start a bet and when to back off.
The surprise move inflicted losses running into the hundreds of millions of dollars on innumerable participants in forex trading, from small retail investors to large banks. The More Complex the Strategy the Better. It does take time and you do need to build your account equity. For trading the euro, ignoring trading costs and commissions, the potential profit would have been 25,000, or 416.67. This is far from reality as news events can be extremely hard to trade in real-time. Money Management Means Placing a Stop. You are trading against pros and if you stay with it you can succeed. Traders often begin with a simple strategy, and see a small return. Know the signs before you throw your money away. Because excessive leverage is the single-biggest risk factor in retail forex trading, regulators in a number of nations are clamping down. It is a great business if you enjoy challenges and have a competitive side. Trading profits are made at the margin even the best traders only win slightly more than they lose.