thespreader posted: Yes agreed! Forex is risky, but if traded with proper knowledge then it can give you excellent returns.
Forex trading is risky for everyone and that's why this is the place where only skillful trader can take the advantage. Back-testing of strategies is the only way to be sure whether that trade plan will work or not.
It is the psychological aspects that makes the difference between demo and real account. In real account, your own money is invested. That's why you are emotionally involved. According to human psychology, people tend to take impulsive decision when they are emotionally attached to anything.
LukeRachel posted: Forex trading is very risky. To control this risk I need to use money management and risk management. If it is possible to control risk properly, it is possible to succeed in trading.
Yes. Controlling risks may lead you to the success.
Yes, it is not possible to survive in trading without risk control.
To make the business safe, read about secured and unsecured business loans. A secured business loan incorporates something of value as collateral that the lender can attach if the business defaults on payments.
Any type of investment and trading involves risk and usually this risk is put in an additional % in the cost of a service or product (if we are talking about other markets). All you have to do to control the risk is to calculate it and include it when you open a trade. That is correct using the ratio of reward and loss.
I totally agree. the only thing that is more dangerous and risky than investing is casino games. but, as for me, to play in a casino is not to respect yourself. Therefore, I still prefer investments. Although in any case, investments are also not the best way to earn money.
All businesses have some kind of risk. The same goes for forex trading. You might make money, or you might lose it all, but there are ways to mitigate your losses and increase your chances of making an overall profit.
Exactly! The purpose of risk management is to minimise risks and increase profits. If traders can apply the right methods to minimise risks, then they can easily increase the chance of making profits. Some of the risk management methods include use of stop loss and take profits, allocating reward risk ratio to trades, and risking small percentage of capital which you can afford to lose
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.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.