Why people are losing money in Forex
It is because they do not understand leverage. It is very powerful, yet very dangerous perk that you get when you decide to trade Forex.
With only few hundred dollars you can open positions which are as big as 100,000 dollars or euros and larger. When you are right in your trade, then you make good money. When you are wrong… well, you can be out of funds very soon.
That is why new traders should start from lower sizes – micro lots or even nano lots. This is similar to stock market. It is a bad idea to start investing in stock market and learn how to invest with real 100,000 or 500,000$. The risk is too big. It is easier to learn on smaller capital. Same is with Forex.