Most people lose all their money in forex, at least the first few times they load their live account and try to the profits of trading platforms. They start with a demo accounts with the platform, probably with Meta Trader 4 as it is the most used and they practice various strategies and at least master the basics of trading platforms, such as opening and closing transactions.
The first thing that people notice when they move, is that all of their cool-handed emotions were under control with their demo account flown right out the window and change into a completely different person. They start smoking two cigarettes at once and can not leave the screen to eat of the visit of the toilet. Definitely going to live, even with a small $ 200 account is a very emotional awakening. In no time, they have not lost their money and have enough equity in the account even a single micro-lot open trade.
But even if the emotions were not a problem, the real reason most people lose money is that she learned to operate under the same nonsense belief system that through the centuries. And suffering the biggest problem of these people is the use of Stop Losses. The real problem is the Stop Loses settings do not lose quit – they only crystalize and confirm them. They lock in losses that seems like a crazy way to hope to be making a profit.
I use the same methods to calculate a stop-loss position, often 50-80 pips away from the price of a trade – but I never make the setting on a trade. Alternatively, what I do is to open a pending Stop Order at 50-80 pips, and so if a trade goes bad on me, the trade will live forever, until it finally does hit my profit target and is the current order live in the interim period just locking my ability to further losses. Then I have time to manage transactions, and to close both the hedged transactions in profit. I refuse to accept trade is a loser; I hedge my bets on a safe level and then make money on both of them.