In fact, it actually seems like everybody is really attempting to sell you on the advantages and benefits of the forex trading these days. Not a day goes by that I see a new forex robot or the ad for a new forex robot or some other trading scheme. And just at the same pace, I can see blatant lies and forex scams concerning performance of those fool proof trading ads and systems which down talk all the risks that are certainly associated with the modern forex trading. And also at the same pace, I can hear the lament of people about having lost their money in forex for one or another reason.

But why are you going to lose your money in forex trading just as any seasoned or novice trader? So below there is my personal list of the main reasons.

First of all, succumbing to greed and the negative effect of it on you is going to make you lose your money each time you actually invest and not only on the modern forex markets. That’s’ why you should check out the non-existing and existing regulations which your broker has obviously to abide by. And don’t consider that due to the fact that there is some regulation you will be quite safe! In that case you are actually able at least to take some kind of issue with your broker up to this regulation. In fact, in the majority of cases, brokers are going to settle before allowing it to come so far.

Besides, counterparty trading and OTC make you lose your money. Well, OTC means that the market is actually not well regulated. Counterparty trading also means that your broker is just trading against you.

Furthermore, let’s talk about the spreads. It is the main difference between the bid and the ask that can really be used in some ways for draining your account.

In fact, leverage has certainly come advantages; however, for some new traders it can really spell a disaster. And so you are able to lose your full investment just in a few seconds because of this. You should beware! But still you are also able to utilize it to lower your current risk.

And now let’s mention the major crosses. It is necessary for you to stick to just the majors. Well, they are quite cheap, have enough volume, volatile enough for earning money and behave well.

Losses, greed and fear – those three can surely devastate your trading account and you. That’s why you need to be quite careful at the moment when you are actually dealing with some of them.

And the last one – manual execution. For you it’s better to stay away from that feature, it has just negative effects.

Before you decide to make a forex investment or start forex trading yourself, better find a nice forex book and learn more about forex market – this will save you from lots of troubles and traps.