Proper Money Management Will Make Forex More Mainstream

With stock portfolios, people are advised to have diversity – putting some money in solid stocks, some in small cap stocks, some in bonds, etc. High risk portfolios usually consists of a larger portion for “up and coming” stocks.

Even with such portfolios, the chance of having one of these stocks erase all their value is quite rare. With no leverage, the chance of erasing all the portfolio is even more rare.

In forex, the story is different. Receiving the infamous margin call is quite common. With most traders losing, they rarely withdraw their funds after a few bad trades. Burning out the account is much more common.