The loss of capital in an account held with a Broker is present at all times due to the risks involved in making investments in Forex, CFDs, Binary Options, etc. All people when they want to start investing imagine good profits but do not take into account the losses they may have for this and it is very important to take it into account always because not everything is profit, the market is very stock market and constantly changes so nothing is 100% sure all investments are made based on probabilities and estimates.
Investors should consider two factors when investing, first of all you should only risk the capital you are willing to lose and secondly, any trading process may involve some loss, whether large or small, although they are similar. Both factors are completely different. one from another. On the other hand, the fact that you say this does not mean that you have to be pessimistic and think that everything involves a loss, you should always have a positive and very relaxed mentality when trading and try to make all the analyzes make both fundamental and technical about the market are the best possible, to make the best decisions and that these do not involve a very high risk of total or partial losses of capital.
The risks in the Forex currency market are present in each operation so it is important not to neglect any for a long period of time especially in which large amounts of money are invested, because the trend may change from one moment to the next. the assets on which it is operating. The success of a Trader is not measured in that 100% of its operations are successful because that is something impossible, with having at least a margin of 60% of positive operations would already be taking a profit to the market.
Can I lose more money than I invest in Forex?
People who are taking their first steps in Forex wonder if you can lose more money than is invested but the answer to this question is no, because the Brokers protect the accounts against negative balances, this is a precautionary measure to prevent the people are left owing to the trading platform, for example if you invest 100 dollars you can not have a loss greater than that amount like 100.01 $ since the capital is one hundred monetary units in USD.
All investments involve a risk of capital loss and you have to be very careful when investing, the advantage that you have when operating today with brokers such as eToro, InstaForex, XM, among others, is that each and every one of them protects the account against the negative balance, which in turn allows you to operate without having the risk of losing more than what is invested but obviously you run the risk of losing all the capital invested.
Capital is always at risk and that is why you should take care of yourself at all times.
Capital will always be at risk in investments, for that reason you should take care of yourself and not risk everything from the first moment, it will be in the hands of the Trader at all times take care of your capital so you must invest what you consider necessary and not exceed more than the account . On the other hand the loss of capital in most cases is attributed to the emotional level that the investor has at that time so you always have to be calm before any operation and avoid trading when you are upset or very anxious, because almost always risking money to a result that is not very safe and ends up losing.
The operations of investment with automated robots must be done with great care because if the algorithm is not configured well this can make the Trader lose a lot of money, although this helps a lot to save time are also tools that have to be used with care.
Any loss of capital is attributed to an error in the investment process
Humans are not perfect and machines are not, for this reason there is always the possibility of making mistakes both people and automated algorithms, however the fact that any loss is attributed to an error does not mean that it always goes to lose, what should be done is to acquire a good knowledge to be able to make investments and the relevant calculations before placing the orders in the market, in order to reduce the risk of making mistakes, as long as the correct answers are greater than the faults everything will be fine and clear the margin between both things must be very different to increase the amount of benefits that are perceived.