Forex practice.

In theory, most people have a good understanding of economics and finance, easily guessing exchange rates and forecasting market prices, but once they enter the Forex market, all their attempts to make money end in failure.

Some losers begin to blame their brokers for their losses, while others study diligently, still trading at a loss. So what's the reason for this change, and where have those insightful analysts gone?

Let's start with the fact that not all theoretical forecasts are confirmed; it's simply human nature to remember the most successful predictions that have come true. Unsuccessful forecasts are quickly forgotten, and the "analyst" develops an inflated sense of self-worth.

In stock trading, things are much more complicated. If in real life you predict that the dollar will appreciate against the euro and this trend continues for a week, you only see the final result, but fail to account for all the intermediate fluctuations. Yes, you've guessed the main trend direction, but you haven't accounted for corrections and intermediate price movements.

In Forex, traders are subject to two factors: correction and leverage . These factors can lead to large losses and even complete losses of the deposit.

In pursuit of large profits, traders use high leverage, thereby increasing the weight of each trend point relative to the deposit.

For example, when opening a trade with the maximum available size using 1:100 leverage, the collateral for your position is only 1%. This means that if the exchange rate changes by just 0.1%, you lose 10% of your deposit, while a 1% change in the exchange rate will wipe out your entire account.

The second enemy in Forex trading is correction. When studying the chart of any currency pair, you will see that the rate never moves in one direction; there are always counter-trend fluctuations, or corrections .

This is what makes a trader doubt the correctness of their chosen trade direction and hastily close it.

Trading on a real account is quite different from practicing on a virtual one. There's no infinite deposit to start over after a losing trade. It's also much harder psychologically to watch your account dwindle or wait for the maximum profit from a single trade.

Cent accounts are ideal for beginners .