Forex trading can indeed lead to great returns, but it is important to avoid thinking that it is so easy and quick to attain. The truth is that it takes time, plenty of work such as by carrying out careful analyses, and you also need to be responsible in your trading by setting certain limits in terms of risks and money management.
While it is easy to put things on paper and plan while outside the market, getting into the market and implementing your plan really tests your ability and capabilities. Your first plan can be made better if you take market experience into account, since with experience you can overcompensate for any deficiencies.
Williamfreed posted: While it is easy to put things on paper and plan while outside the market, getting into the market and implementing your plan really tests your ability and capabilities. Your first plan can be made better if you take market experience into account, since with experience you can overcompensate for any deficiencies.
Yes planning for anything is very easy but executing the plan and working according to it is the real test, that is why before going live we need to practice on demo accounts.
I do agree with you here, if we talk about short-term investing. Forex trading can bring you really high profits in a short period of time especially if we compare it with some other forms of investing. However, if we talk about long-term, investing in stocks or funds is much more profitable and less nervous than trading.
Forex trading is a high-risk high gain, for long term return if any trader already having good ability to make a consistent profit, it will become a good gain for the long term, but indeed forex is risky, maybe only 15% traders can survive and make money in forex, diversification investment is one way to manage to invest business, an investor suggested to giving less than 30% potion for trading.
@8christianpaul8 Of course Forex has risk. That's why risk management is so important in Forex. If it's not risky then there is no point of risk management. Every business has its own risk but Forex is riskier.
I'm not saying it's not risky. I just don't agree that it's high risk as others mentioned. I agree that everything has its own risk. When you say riskier, compared to what? Money management solves any risk with Forex. It doesn't have to be high risk.
Christian Paul forex trading has high risks and no one can ignore that no matter how optimistic you are. Moreover I believe that the levels of risk in forex trading can be reduced if trading is done with the right strategies.
karenpeters posted: Everything comes with a risk. With a good strategy and proper Money Management, you can make a good profit. Developing trading psychology is also an important factor to consider in Forex.
Exactly, a lot is needed to make profits in development skills and money management trading.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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