Forex trading has reached the 5 billion dollar milestone in online transactions. Every year millions of investors are joining this marketplace. Forex is a profitable trading arena if trades are conducted effectively but every year hundreds of investors lose money because of a lack of understanding. There are a few common reasons people lose money in FX trading. Today, we will discuss these reasons.
1. Overtrading
Beginners can become absorbed in overtrading when the marketplace is very new to them. But overtrading drains their money and they face loss gradually. A time comes when they have nothing left to invest and their account balance becomes zero.
To get away from this bad habit, newbies must execute their trades based on the longer timeframe. If they are new to the FX market, they should not do scalping which may attract them. Overtrading is closely related to scalping and it is … Read more