If you’ve ever traded in the foreign exchange markets, the chances are most of you have had an account wipe out. You’ve gone into the Forex market with high hopes, with a high expectation of making a lot of money and with low expectations of losing that money, however, most new traders have their low expectations come true and wipe out their entire Forex trading capital within weeks.

It’s a horrible feeling being caught in a bad trade, over leveraged with no pre-determined stop loss. For those of you who haven’t experienced this, the following is an example of what so many have experienced in the Forex; we will use imaginary Joe as an example. (more…)