50-1 Ways to Lose Your Money in Forex

“Success in trading is not a fantasy; it’s a formula”

“Probably the most consistent thing is losing”

68 percent of investors had a net loss from trading in each of the past four quarters

Retail forex investors, many of whom are well educated in fields other than finance, enter into a market that is lightly regulated, opaque and rife with conflicts of interest.

And they are allowed to supercharge their bets with the kind of leverage — as much as 50:1 — that investors in other asset classes can only dream of. That kind of juice can lead to wins, but more often than not, it leads to big losses. Investors can have their entire investment wiped out in a matter of days.

Imagine if you took $2,000 from your bank account and traded it in the forex market. It would be worth $100,000 of buying power

http://www.bloomberg.com/news/2014-11-12/leverage-as-high-as-50-1-lures-otc-forex-traders-who-mostly-lose.html?alcmpid=markets

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