The Worst Forex Trading Strategy Ever

forex-averaging.jpgImagine Forex trading strategy that being applied to a portfolio of assets. In the end, all the capital will automatically be allocated to the worse performing assets in the portfolio while the best performing assets are sold off. The Buying at low strategy/Averaging!

 

This worst Forex trading strategy is the one that designed to maximize your losses over the long run, then you can reverse it to craft a strategy which does the exact opposite and looking for some tremendous long-term gains.

 

Only bad investors will buy pairs at a sinking price to decrease their overall average price per share. This Forex trading strategy is hardly ever effective,

and is often like throwing good money after bad. It also magnifies a trader’s loss if the share keeps dropping. Remember, just because a buying pairs at low price is cheap now that doesn’t mean it’s not going to get any cheaper.

 

Unfortunately, the pairs price may fall even further, and the novice trader will again buy more pairs to reduce the average cost. They end up buying more and more into a pairs that’s losing their money.

 

If a trader uses Buying low strategy/averaging and uses margins, their losses will be magnified even further. The biggest problem with this Forex trading strategy is that a trader’s gains are cut short, and the losers are left to run. My advice just don’t do Averaging! (www.daily20pip.com)

 

 

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