The penultimate week before the experiment is closed. Participant Y has finished the sixth week with only €13.02 in his trading account. This week has been quite active and only three out of fourteen trades were unsuccessful. However, the size of the trading account has been changed minimally and at the end of the week 7 was €14.35. Participant Y has not used more than 0.03 Lot per each trade. Of course, IronFX trading platform has not allowed him to use a higher leverage due to a relatively small amount in his trading account. Participant Y already knows that during the investment decision experiment he failed to generate at least a small portion of profits, in fact, he failed to maintain the initial investment. Up to this moment, participant Y has lost more than 93% of his trading account. Certainly, it is necessary to consider the fact that both players are not professional investors, till the experiment they did not have any knowledge about investing. However, we are glad that at least one participant was able to keep at least a small part of the initial investment.
Investment decision results over a seven – week period:
We can see positive signs in the investment decision experiment, because participant Y finally started to use a “stop loss” tool. According to the same participant, when mistakes which lead to a loss are made, this greatly reduces motivation to trade again. Even the fear appears when the decision to buy/sell a chosen currency has to be done. Such doubts may cause the omission of profitable trades.
Only one week is left before we will end the investment decision experiment. Both participants have already proved that trading in the Forex markets cannot be seen as a hobby. Investing/trading activities require a combination of practice, knowledge, skills, psychology, talent and etc. Otherwise, this is the fastest way to lose your money.