For the participant X week 5 has to be marked as a crucial. Although, he still has a small amount of his initial investment but until now this participant has already lost 99.34% of his capital and currently has only €1.32. If this participant will again wrongly forecast the movement of the exchange rates and then place a trade on that, his investment account will be blown up. Therefore, the sixth week can be the last for him. To be honest he has already proved that Forex is not for everyone.
Meanwhile, the participant Y continues investment decision experiment. He ended the fourth week with €333.64 in his trading account. On Wednesday participant Y increased his capital and reached a new high, €433.45. The initial investment has been increased 116.73% from the beginning of the experiment. However, there are signs that participant Y overestimates his trading skills and thinks he can become a trading guru. Wrong GBPUSD exchange rate analysis, which resulted in a capital loss, induced participant Y to open 3 more trades willing to finally make profit from the movements in the trend. Nevertheless, GBPUSD exchange rate continued to move down, and already has reached a new low since 2010. These three trades have significantly reduced participant’s Y capital. Four GBPUSD trades had been opened because he expected that downward trend will change to upward and a possibility to get quick profit will arise. However, when participant Y has been following a trend of GBPUSD, he panicked and did not close his trades with a small loss as he should have done. This is a perfect example how in Forex you cannot rely on instincts and have unrealistic expectations. In just a few minutes or hours you can lose most part of your trading account. Unrealistic expectations reduced his capital by €231.76. Four trades have not been closed yet expecting a trend change.
The sixth week of the experiment should be thrilling for both participants. One of them might end up the investing experiment another might close trades with a huge loss. To be continued…
