A market analysis shows that most of the traders are using high leveraged accounts and that brokers are offering trading accounts with incredible leverage as 1:1000 and I even met a few brokers offering 1:2000. I have no idea if they were scammers or not and were offering those huge leverage accounts only to attract the clients but 1:200 up to 1:500 leverage accounts are mostly used by traders. Why's that? Because they make small deposits and need higher leverage to be able to trade. But why they make small deposits? Because they don't have money? I don't think so. Because they are afraid to lose the money? I think that could be the answer.
There is also known that the emotions are one of the biggest enemy of all traders. There is a saying: "You have to leave your winning trades to run and to stop your losing trades." Strangely the behavior in the real life is another one: traders are moving their stop loss orders larger hopping that the rate action will reverse and finally run as they predicted and in other cases they cash the profits before the take profit order gets triggered. This behavior is because of the emotions: fear, greed, hope and other. The greed makes you to move the take profit higher and instead of seeing the rate action going there you are looking how it's reversing and run against you. The fear makes you to cash the profits before the target is reached and finally the hope is that feeling that is pushing you to move your stop loss order larger when the trade runs against you. Finally, after many years of experience some traders manage to control this emotions and they become a better trader but many of you can't control them and you either get broke by keep losing money trading, either you quit after the first or second attempt.
Did it ever happened to you to have a series of good trades and instead of taking a break you were anxious to enter another trade? And another one? Only that this time you were losing the profits you made a few hours before. This is called over-trading. Not healthy at all !
The reasons why 95% of the retail traders are losing money are far more than these three I presented here. TradingFloorFx has the solution to these problems.
If you want to defeat the emotions, to avoid to over-trade and to be part of a trading team who manage a trading fund of 10000$ send us an email at members@tradingfloorfx.com, with your name, nickname (if you have one) your country of residence and your contact details (including the phone number). We are looking for you. We want you.
