Why do so many people blow their accounts on forex?
Ok, stupid question but I just started playing around with forex... I don't get how people can lose their whole account so quick.. Aren't the odds of winning or losing a trade close to 50/50 if you set your stops far enough? say I have a $10,000 account and trade 10,000 units of eur/usd every trade so thats $1 a pip and set my stops at 50pips and every trade I do the same thing. THen I flip a coin and say heads I buy and tails I sell and do this over and over.. it should still be close to 50/50 right? Now what if instead of a coin I increase the stops to 100 pips and just follow the trend using simple fundamental techniques? This should be a good way to win right? What do you think?????
Additional Details
simion-yes I know, there's of course reasons why the market moves the way it does but the coin does not know or care. So if the USD suddenly decides to turn around and I sold the EUR because that 50/50 coin toss decided tails then I make money. The chance is still 50/50 because the chance of hitting either stop is close to equal. I don't see what leveraging has to do with it this. If I use leverage to increase my buying power I don't go full leverage because that's the easiest way to kill yourself, that's obvious I think you're just increasing your chance of getting margin called especially with 50/50 probability. The only factor swaying the 50/50 is the spread. THank you for your response though I am just trying to figure out and this was just my initial view of the market.. I'm far off from learning fundamental methods of trading, it will take me years to understand it and even then I don't think that knowledge will pay off if I don't have the fortitude to make confident trades.