You Can Loose Everything

Just as there are forex systems out there that can help you, there are also ones that can hurt and nobody wants to end up this way. Once you have tried the worst possible forex trading strategy which is designed to maximize your losses in the long run, then you can turn it around.

When you reverse this system, you can actually create a strategy that does just the opposite. Because you have learned from the wrong strategy, you can then make one that will produce gains that are long term. This worst strategy is known as averaging down. In this way, the trader will buy more shares that he had already bought while the price is dropping. Some traders do this to attempt to reduce their initial entry price

It is only the bad investors who will average down by purchasing sinking assets as a way to lower their price per share. This system is rarely effective and can be seen as throwing good money after bad money. If the share continue to drop, the losses are only magnified.  This is why it is so important to have a stop loss in place. The share price can go lower as well and the inexperienced trader will buy more to lower the average cost per share.