5 Most Dangerous Forex Trading Methods

Most Dangerous Forex Trading Methods
Most Dangerous Forex Trading Methods – The word loss is common in forex trading. Almost all traders have experienced a margin call, even we experienced it at the beginning. If someone says they have never experienced a margin call, it’s called a hoax. Even experienced traders must have felt it.

This time we will discuss The 5 most risky trading methods which becomes the disease of the dummy trader:

1. Martingale

It is the first and most dangerous. If there are readers who like to play games like Mobile Legend, Martingale is the enemy that has the most painful damage effect.

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Traders with the Martingale method usually have extreme levels of profit and loss. When the first OP (open position) does not match the market movement, the trader will continue to OP against the price with a higher number of lots.

For example, now the trader is OP Buying 1 lot, EURUSD is priced at 1.15000. When the price goes down, the trader will increase the OP Buy by folding the volume of the lot by 2 lots in the hope that if the price goes up it will cover the loss of the first OP and even turn the situation into a profit.

2.Averaging

In the second position we enthrone the method averaging. This method is almost similar to the martingale, you could also say its sister Martingale.

Although slightly safer, the implementation of averaging is similar to Martingale in that it will continue to take positions against the direction of the market without folding the lot volume without installing Stop Loss. We have applied this method to one of the following Mql5 signals: MQL5 Forex Topic

On the front, we can see growth in 2017 reaching 250%, but in the middle of 2018 there was a 50% drawdown. At that time we held a floating position minus averaging Sell on the EURUSD pair. Luckily the price had dropped and the loss was only around 20%.

3. Small Timeframe Scalping Method

scalping
is in third place, and it must be admitted that many novice traders do this. In addition to aiming for profit, traders do scalping usually to pursue the rebates offered by the broker.

This scalping method is closely related to the use of EAs (expert advisors) or trading robots. There are many providers of both paid and free robots scattered on the internet. You know, almost all scalper robots end badly.

Those who benefit from this method are none other than your robot sellers and brokers. The more lots created, the bigger the broker’s income.

4. Locking/Hedging Method

Method
Locking or Hedging we put it in fourth position. This method is more accurately said to be a method of securing equity or capital. Usually applied to secure critical margin levels.

Although the goal is to secure, but locking does not save your account. From our numerous observations, there is very little chance of rescuing accounts with excessively locked positions.

5. Gambling Method

Although not classified as gambling, but you can still speculate in forex. And in fact, many traders like to gamble on forex.

These gamblers are of course very aware of the risks. Usually they will do OP (Open Position) full margin. To run this method, they will choose a broker with a large leverage of 1:1000. Please note, this type of trader will not use a local broker because almost all local brokers only provide 1:100 leverage.

For example, a local broker has $1000 in funds, gamblers can only OP 1 lot. Meanwhile, if you choose a broker with 1:1000 leverage, gamblers can OP 10 lots at once.

Remember, the choice of leverage does not affect the pips value. Regardless of the leverage used, the value of pips per 1 lot remains $1 for EURUSD, GBPUSD, etc.

CONCLUSION

Forex trading is a business with comparable risk and profit opportunities. Any sophisticated analysis will not be useful if we are not wise in making decisions. Never get tired of studying.

Send regards for success,

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