Most people enjoy trading in the forex (foreign exchange) market because it only takes the smallest amount of money to get started in day trading in the currency markets. Forex trading is highly volatile and an untrained individual can lose large sums of money in a relatively short period of time. However, the following scenario reveals the many potentials, even with a high risk-control forex day trading system.
In this instance, the trader is a seasoned veteran who has been trading for over a decade. He uses a very simple trading system with a very high rate of success. It works without difficulty, and he makes no mistakes when it comes to price action. He uses a forex broker and he has chosen to trade in the UK market.
He decides that his goal is to make money on every trade that he makes. He wants to maximize his profit as much as possible. To do this, he opens an unsecured PPO account to trade in. His broker provides him with many options that include trading options, stop loss orders, stop order and profit targets. As he is new to the forex markets, he takes advantage of these options and he does not have the technical background to choose them for himself.
On the first day, he decides to open a PPO account, as he is afraid of losing money. He realizes that it is going to be expensive, but he wants to test how a PPO works. He is able to enter the markets, but at the end of the day, he has lost more money than he made.
In his second day, he decides to open another account and he uses the same trading system. He uses the same strategies to gain profit and he trades as he always has done. This time, he gains a lot of profit, but he also loses a lot. His broker does not see the profit potential in this account, and he closes the account. After closing the account, he realizes that he needs to have more training.
He decides to open another form PPO account and he opens it using the same trading system that he used in his first account. He uses the same strategies and he does well. However, in his third day, he does not experience the same profits as he had in his second account. He decides to stop trading because he did not see any profit, despite the fact that he had been using the same trading system.
His broker tells him that he has to keep an open mind because he might be able to gain profits if he learns to use the different strategies. After having this message, he realizes that he might be able to get more profits if he takes a chance and that the PPO was a good option for him. He continues to trade in the UK market and he wins his first profit, even though he has used some techniques that were wrong for his forex trading method.
Even after losing his first profit, he does not give up, and he starts using his trading system, but he does not win the profits that he was hoping to make. Instead, he takes the time to learn more about forex trading and he learns to use more advanced techniques.
His broker also suggests that he go to the university and attend forex seminars in order for him to master the different strategies he has used in his past accounts. After he learns more about these strategies, he is able to master them and he is able to use them more effectively, even though he is still not making very much profit.
Eventually, his profits start increasing, which allows him to make more profits. However, he still loses some, and he loses a lot of money, which causes him to start losing hope. He decides to give up the forex trading industry because he still wants to make a lot of money, but he knows that he cannot succeed if he keeps losing all the time.
One day, he decides to change his trading strategy because he no longer wants to lose money with the PPO. He does not want to lose everything just because he was unable to gain profits and to be able to make more profits.