Why do so many people blow their accounts on forex?

[tashnotashi]

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.

app ki baat sahi ha kioun k main bhi ye feel kiya ha wese jahan tak mere apne mushaidat ka sawal ha na to mugh ko sahi baat ha k es main koi bhi or reason nazar nahi ai siwaye greed k greed he sab se barri waja ha hamrey accoun k blow up honey ki

[mojacko]

because many people are not disciplined and has bad money management. it is advisable to risk only 2% per trade and don't overtrade. in that way you have to lose 50 consecutive before you blow your account which is almost impossible.

[jmsblack18]

The forex is all about the management of risk. The one which can't manage the risk well will blow their account. That is the nature law in forex. Even you say the chance is 50/50 but if someone cannot manage the risk and hold the wrong position , even they come out with big account they gonna loss for sure.

[waleedkhan]

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.

mara hisab sa agar app demo version use kar ta hain aur app ko acha tara sa forex trading ki information ho ja ti hai tu app apna emotions ko control main rak ka bohat sa profit gan ka dakta hain

[riddick09]

there are some traders who don't have the ability of skillful trading.they may not have learnt trade very well.And some of them may be greedy in trade and so they lose in trade and blow their accounts in forex.

Yes, sometimes it is because they have bigger targets and will really not enough or can't handle for the trading capital we have currently. Although, it also means of risking it all in order to earn big so it will be just two events if they will have that either to win with reasonable profit or will blown their account.

[ishvara]

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.

Lack of knowledge in forex currency trading business is the main reason why forex traders get a margin call in their trades. We should prevent this by actually getting more knowledge about forex trading.

[AffiliateTurbo]

i think its because of bad money and risk managements!! iu trade with small leverages, so can i trade my trades long distance to go!!! i place very small positions!!! so i trade with the small rist!!! i do not have medium and high risk trades in my range of trades!"!!

[got2luvyou25]

dear there are many reasons that makespeople to blown up their account.Most important things are they donot have good trading and money management plan to trade the forex market and second is they become greedy and emotional in tradings

ye to 110% sehe baat ha k trader money management use nahi kertey jis ki waja se unko losses ka smana kerna perta ha lekan ain ye b kehta hun hata k ap k pas money management system b hu lekan jeb tek ap is kam k able nahi ho jate k market right time per entry leen ap market ko nahi jeet sekte chahaye MM ho ya na ho

[lights]

why our account blow up? because our margin is used up
therefore, we should pay attention to our money management, dont use many lot when our capital is less. be wise in use your margin

[taufiqbd]

The main reason that the expert trader in the market only 5% and 95% trader are low knowledge about forex and they start trading without analysis and they take big risk as a result a little movement can destroy his account. Expert trader never frustrated and they stay in long term for a single trade.