Yes: If you treat it like Casino by over leveraging your initial margin. Simple: If you have USD5000 to start with, leveraging 1:100 (you play up to USD500,000) will burn your ass once the market against you in 100 pips. Eg. You buy EUR/USD and if the market move 100 pips against u, you are finished. (IT CAN HAPPEN IN LESS THEN 1 SECOND!!!)
No:
1. You must know simple calculation. USD5000 pips max leverage is 1:1. Now,at least you have 5000 pips to deal with.
2. Hedging. (My definition of hedging is based on Deutsche Bank platform which allow you to sell/buy stop. Most of the platform allow you stop loss only)
3. Set yourself like machine: emmm.... we are human, this is the toughest part. "Torture your brain first"...Beside all this, you must know the psychology of the players ( Banks, Investment Banks, Hedge fund....those like Soros kind of player) ...Of course like all games, first hand news will be the best trading tool. If you have good friends like Ben Berneke, Obama, Jean-Claude Trichet, let me know.
Most of you have simple knowledge in investing will ask me...what about fundamental, technical analysis..etc..
My answer: Emotion=Fundamental + Technical
Come on.....All these are created by the big boys to "eat" you. My advice. "Turn off Bloomberg and CNBC" if you want to start trading in FOREX!!
