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If you will do use this it vital to remember, you need to still use other methods such as stop loss orders. This way you are nevertheless controlling the chance.

There additionally the issue of account size. Many demo accounts give you $50,000 perform with. Such a capitalization aids you to buy 5 lots (500K) of EURUSD pretty very easily. If their website up 20 pips you have made $1000. Nice one. To chop open your real account - it's more likely that place $5000 or $10000 inside to using. Now you're dealing with a 50K lot, which means you'll take $100 coming from a 20-pip movement. But mentally you used that will get you $1000 for the movement which usually upwards risking additional. Next thing you know - your 200K position has turned against you 50 pips and you've lost $1000. That's actual money you just lost. Improbable just start another facebook poker chips.

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