When a trader begins to trade, what normally happens is that the first few trades are usually successful ones. The new traders then becomes so confident of their supreme abilities in trading that their carefully crafted trading plan and money management rules are cast aside.Suddenly their trades are not going so well anymore, they begin to lose more and more regularly. It almost seems that the market is ganging up on them to rip the carpet from under their feet! New traders being inexperienced tend to take it very personally and then sub consciously decide to punish the market.So how to stop losing money in Forex is a must for traders
The position sizes become larger and larger, money management is totally forgotten, and their trading plan is in tatters now. Any piece of rumor or hearsay is taken to be the gospel truth and acted upon. When all these fail and they still lose money, they turn to "sources" that tout the holy frail of trading. That one plan that could make a trader a million in less than a year! (Come on by now wouldn't you have woken up already?)At that desperate situation, many traders choose to believe these sources and make some hefty purchases. They re fund their accounts and take their new trading plan to the market to stop losing money in Forex.