Forex practice.

In theory, most people are well versed in economics and finance, they can easily guess exchange rates and predict market prices, but as soon as they come to Forex, all their attempts to make money end in failure.

Some of the losers begin to blame brokers for their losses, others study hard, still working at a loss, so what is the reason for such a change and where do those insightful analysts go?

Let's start with the fact that not all predictions made in theory are confirmed; it’s just human nature to remember the most successful assumptions that came true.

Unsuccessful forecasts are quickly forgotten, and the “analyst” develops inflated self-esteem. With stock trading, everything is much more complicated, if in real life you assumed that the dollar will rise in price against the euro and this trend is observed throughout the week, you see only the final result, but do not take into account all the intermediate fluctuations. Yes, you guessed the main direction of the trend, but did not take into account the correction and intermediate movements in the exchange rate.

In Forex, the trader is pressured by two factors: correction and leverage , it is because of them that large losses and even complete loss of the deposit occur.

In pursuit of big profits, traders use large leverage, thereby increasing the weight of each point of the trend movement in relation to the deposit.

For example, when opening a transaction of the maximum available volume using a leverage of 1:100, the security of your position is only 1%, that is, if the rate has changed by only 0.1%, you already lose 10% of the deposit, and a 1% change in the rate will completely eliminate you from money.

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

It is this that makes the trader doubt the correctness of the chosen direction of the transaction and hastily close it.

The practice of working on a real account is quite different from training on a virtual one; there is no endless deposit, so that after an unsuccessful transaction you can start all over again.

Psychologically, it is also much harder to watch your account melt away, or wait to receive the maximum profit from one transaction. Therefore, first start trading with a small amount, study all the troubles that may await you, and only then increase the volume of transactions. Cent accounts are perfect for a beginner .