Forex is not for the greedy. By being greedy, one is bound to lose more especially when he invests in a trade that performs well and closes it with good gains, whereby he can become convinced that he/she would have made more if he invested a lot, ending up to invest all his money in the market which ends up going the wrong way and lose everything.
For example; imagine you have opened a trade with $40 dollars with the high leverage of about 400%. The market moves in favour of your trades, and within a few hours, you close your trades in a gain of over $200 dollars, over five times the original equity invested.
Full of the winning excitement plus greed, driven by the urge to make more money as well as imagining, or wondering what if you had initially invested $200 dollars.
After doing your math about the possibilities of having made over $1000 dollars in case you invested $200 dollars within the same period of time, and thus you reach the final decision of making a killer investment.
You end up making the investment of all the equity in your trading account. At first, things look good but only for a short period of time. Then suddenly, the financial investment news is received on the online trading platform you are trading on. The trading trends change and before you act, you find that all your money has been lost to the trading platform.
This is the exact picture that I am seeing on etoro, the largest online trading platform in the world, whereby most of the traders who achieve to belong to the popular investors group do not shine for long without blowing their investment account and going back to the drawing board to revise their trading strategy and come back to try their luck trading cautiously.
Online trading is like gambling and that is why there is a warning not to invest the amount of money not ready to lose.