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Why Most Traders Lose Money
3:09 · 10 chapters · Forex basics, part 1
What you'll learn
About 7 in 10 retail CFD accounts lose money, by the brokers' own figures. The 7 reasons why, and the rule that fixes each.
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- Key point 1
- Too much leverage: at 100:1 a 1% move can wipe out the deposit
- Key point 2
- Risking too much: five 10% losses take about 41% of the account
- Key point 3
- No stop, or moving it further away
- Key point 4
- Revenge trading after a loss
- Key point 5
- Ignoring spreads, commissions and swaps
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.