This week EURUSD exchange rate reached a 2003 low, while GBPUSD made a spectacular drop to a level last seen in March 2009. Furthermore, EURUSD exchange rate continued to move down, while GBPUSD on the 21st of January demonstrated a small positive rise. The future outlook remains uncertain. It is about a time to know, how this week was for the experiment participants. Ruinous or amazing?
Participant Y closed four trades which had been opened on the 14th and 15th of January with a €434.57 loss. GBPUSD exchange trend could move even lower, and that could cause even bigger losses, but participant Y rushed to close his opened trades and has been left with €31 in his trading account. Unfortunately, a week ago he had €447.78 and had to finish the sixth experiment week with only €13.02. The participant Y has not learned from the participant’s X mistakes who had to stop his participation due to a lack of funds in his trading account. On the January 18th – 22nd experiment participant Y placed 14 successful trades, but one unsuccessful trade when GBPUSD currency pair had been sold with 0.05 leverage lead to a loss of € 42.67.
Since there are only two weeks until the end of the experiment, we can already realize that both participants will not increase their initial investments. They even failed to maintain their investments. Nevertheless, participant Y still has another two weeks before the experiment will end. However there is a very low probability that he will regenerate his lost initial investment. Meanwhile, participant X can only watch how the investment decision experiment will go for his opponent.
Why for both participants this experiment has not been successful?? The first reason: there was too much risk running when trades have been placed. As well, both participants did not stop unsuccessful trades even if the trend direction has changed. They continued to wait for positive changes in exchange rates, hoping to eventually make profits. However, participants waited too long and that caused relatively large losses. If you have been very successfully for a while, it is difficult to admit that you were wrong. However, this is how the Forex market works – offers big returns which come with even greater risk to lose everything.
Participant’s X and paticipant’s Y trading results:
In the next two weeks participant Y can still a bit boost his trading account.