Friday, February 27, 2015

Hypothetical Forex Scenario

Imagine this hypothetical scenario:

You are a signal provider and couple of thousands of followers have invested their money to copy your trades. Everything goes well, you are more than 7,000 pips in profit and your followers love you.
Suddenly, you experience a HUGE drawdown, your 29 open trades goes so deep that they not only wipe all of your current profit, but you even go next 20,000 pips into negative territory!
During this wild roller coaster ride, hundreds if not thousands of your followers receive margin call and their open trades are closed.  They lose many thousands of dollars.
Market turns and your open trade losses recover and you publish following statement to your followers: read more....