CFDs of Forex as any other derivative product brings in a significant challenge, since the pontential profitability is huge, thing that attract many investors, although the risk implied is also significant.
The key factor in order to be profitable is the risk management, this is the real challenge, to stand losses when you need to and to leave positions opened when suitable. A beginner trader normally does not have the education & psychology to stand losses and work efficiently under pressure.
Because we can be profitable winning 20% of the positions, if for example we loose 10 pips per position (80 pips in 8 positions) but we win 60 pips in each winning position (120 pips in 2 positions); on the other hand we can be unprofitable having 80% of winning ratio, winning 10 pips per position but losing 60 pips in the losing ones.
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.