A lot of people have jumped on the forex trading bandwagon in recent years. They've heard about how much money you can potentially make by trading the currency markets and have leapt head-first into this exciting industry.
However once they open an account and start trading, they soon realise how difficult it is. Indeed the vast majority of people will end up losing money. So where do they go wrong?
Well firstly they will often start trading without using a proven trading system, ie a system that has generated profits consistently on a long-term basis. The systems that they do use are often sub-standard ones they have bought on the internet or read about on the various forex forums.
They may even choose to use a forex robot if they don't fancy trading the markets themselves. However again while there are some profitable expert advisors, many of them will end up losing money in the long run.
The other major problem is most people new to forex trading do not have a firm grasp of money management, and more specifically how to manage risk. As a result they will often overexpose themselves when they enter a position which will eventually lead to them being completely wiped out in a lot of cases.
Well anyway if you yourself have trouble understanding risk management, then you may like to know that Bill Poulos has just released a new training video which covers this particular subject.
In this video he reveals the #1 reason why so many traders lose money and remedies this by providing you with the perfect risk/reward ratio that you can use as part of your trading plan. He also shows you how you can eliminate risk from every single trade you make.
You can watch this video by clicking here.
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