Alan Solarsh breaks down why forex traders lose money: unregulated brokers and Ponzi schemes, poor risk management with wrong lot sizes, and skipping stop-losses or hedging. He recommends regulated brokers, learning hedge trading, and avoiding high-yield investment programs.
Alan Solosh here, your forex mentor. Now, today's question is why do forex traders lose money? So before I get into this question, I'd like you to press the subscribe button so that you subscribe to my channel so that you don't miss any future videos. Also like the video and then comment in the comment section of videos or subjects that you like me to produce for you so that I know what you're interested in when you hit the like subscribe and, and, and you comment in the video. You help the YouTube algorithm get this video to more like individuals such as yourself. So please hit the like subscribe and comment in the comment section now. Right, so there are three main reasons why people lose money in forex. So the forex industry is notorious for saying that 98% of all traders lose money, lose their money in the first three months. And there's a couple of reasons why that happens, okay? And the first reason is because you're dealing with a fake broker or, or you've entered into a Ponzi scheme or you're dealing with a hype. Okay? So there are many fake brokers out there and you need to make sure that your broker is actually regulated in the country that you reside. If your broker is not regulated or if you've done no research on that broker and you haven't checked the reviews, okay, do not use that broker. Now we use a fantastic broker that is regulated in four countries, Belize, Cyprus, South Africa and Australia. There's very stringent rules that need to be adhered here to, to get that registration or that certificate, that FSCA certificate. And we very proud of as a, an affiliate to say that our broker is legitimate and they are an a book broker. So in the description of this video is the link to that broker and I highly recommend that you use that broker. I think I'm going to go into another video in the next couple of days explaining to you the reasons why we use that broker. Right, so this, the, the second part of.
Okay. Is the Ponzi scheme. Okay. There are so many Ponzi schemes out there where people are asking you to deposit your money into their bank account or send them Bitcoin and they will trade for you. And unfortunately it, there are many, many scammers out there. I've been victim to a couple of these Ponzi schemes and I've lost money to people also offering me their services or of which there is no legitimacy behind them. I'm going to come out with another video on how you can distinguish between who is a legitimate trader and who is not. The third reason is of the of. The first part of the question is a harp. A harp is a high yield investment program where they offer you fantastic returns. 3% today, 10% a day, 10% in three, three days, 300% in three months. So you deposit your money into their Bitcoin wallet, but more Bitcoin Ethereum usdt And they, they, it looks all fantastic. The, it looks professionally made, the website's professionally made. And then you try to withdraw your money and they come up with a new story saying for you to be able to withdraw your money, you need to deposit X amount of money because you haven't hit a threshold. This is 100% a Ponzi scheme and a hub and you will 100% lose your money. So run away when somebody offers you this type of investment. Run as fast as you can. The second part is bad wallet management and I've got a video in the top right hand corner of this video. You'll see that there is a notification that explains to you how to know when or what the loss is of a trade if the trade goes south. Okay, so what I mean by bad water wallet management means you're using the incorrect lot size for your account type. And to be able to know the lot size you would, you can use that video above that explains to you where and how to check what the loss is per trade. Very, very clever technique that I share with you that is going to help you to save your account. And the third part is you're not using a stop loss or a hedge trade. Now a lot of brokers out there don't allow you to use a hedge trade. So a hedge trade or use a hedge trade on the same currency pair, which means that you go long and short at the same time. What they do allow you to do is to use a correlating pair, an uncorrelating pair. And if you don't know what that is in the top right hand corner, I share with you what, how, how to check what an uncorrelating pair is. So check out that video. Now if you don't know what an uncorrelating pair is, so you can either hedge trade or you can use a, an uncorrelating pair. I don't to use stop losses, I prefer to hedge. Now our broker allows us to place hedge trades and this is an amazing tool that is very, very hidden from the public. Okay. Hedge trading is a technique, very, very clever technique that I explained to you on my learn to read a forex chart website which is on the screen now as well as in the comments section of this video where I show you and I teach you how to get out of a hedge trade, how to trade using a hedge and which is how the banks trade and how the institutions trade. So instead of losing money using a stop loss you can learn to, you can learn to hedge trade. So that's, that's the answer to the question now if you'd like to learn how to make some passive income on the screen now is my website where I teach you how to make passive income on forex using an expert advisor or automated trading. So in the comment section of this video is the link as well to that website as well as the links to the other videos that I shared with you that you should go and watch. So go check that out and just remember to like subscribe and comment on this video and I'll see you on my next video.
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