Pros and Challenges of Trading Forex

Sep 25, 2020 at 01:58
1,430 Visa
28 Replies
forex_trader_1786937
Medlem sedan Aug 23, 2020   142 inlägg
Sep 25, 2020 at 01:58
I found this below very useful, and newbies should always know about it
12 years ago I was a newbie too, but now a profitable proffesional. So always know what you are getting into.

Pro : The forex markets are the largest in terms of daily trading volume in the world and therefore offer the most liquidity . [2]  This makes it easy to enter and exit a position in any of the major currencies within a fraction of a second for a small spread in most market conditions.

Challenge: Banks, brokers, and dealers in the forex markets allow a high amount of leverage , which means that traders can control large positions with relatively little money of their own. Leverage in the range of 100:1 is a high ratio but not uncommon in forex. A trader must understand the use of leverage and the risks that leverage introduces in an account. Extreme amounts of leverage have led to many dealers becoming insolvent unexpectedly.

Pro : The forex market is traded 24 hours a day, five days a week—starting each day in Australia and ending in New York. The major centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London, and New York.
Challenge: Trading currencies productively requires an understanding of economic
fundamentals and indicators. A currency trader needs to have a big-picture understanding of the economies of the various countries and their inter-connectedness to grasp the fundamentals that drive currency values.

The Bottom Line
For traders —especially those with limited funds—day trading or swing trading in small amounts is easier in the forex market than other markets. For those with longer-term horizons and larger funds, long-term fundamentals-based trading or a carry trade can be profitable. A focus on understanding the macroeconomic fundamentals driving currency values and experience with technical analysis may help new forex traders to become more profitable.
Medlem sedan Apr 15, 2020   83 inlägg
Sep 25, 2020 at 06:36
Trading is really quite risky, but there are not much more advantages, you just need to approach everything competently and judiciously.
forex_trader_1786937
Medlem sedan Aug 23, 2020   142 inlägg
Sep 25, 2020 at 07:29
Dorigda posted:
Trading is really quite risky, but there are not much more advantages, you just need to approach everything competently and judiciously.
There are much advantage to me though.
Medlem sedan Sep 24, 2020   17 inlägg
Sep 25, 2020 at 07:55
Dorigda posted:
Trading is really quite risky, but there are not much more advantages, you just need to approach everything competently and judiciously.

It's true you have to have a sober mind in trading. and for me forex has a lot of advantags. first of all i knew a lot of new thing. Now i know every economics event. and even politics is interesting for me now. and the bigest advantags is money. i have aditional money from trading.
Medlem sedan Jul 19, 2020   298 inlägg
Sep 25, 2020 at 08:43
Whatever trading style you follow you have to expert in that. If you do not have enough skills, you will not be able to stay here for long. A newbie should focus on learning and researching. They should remember it takes time to be expert.
forex_trader_1786937
Medlem sedan Aug 23, 2020   142 inlägg
Sep 25, 2020 at 08:50
Michihito posted:
Whatever trading style you follow you have to expert in that. If you do not have enough skills, you will not be able to stay here for long. A newbie should focus on learning and researching. They should remember it takes time to be expert.
On point
Medlem sedan Jul 19, 2020   751 inlägg
Sep 26, 2020 at 11:50
Yes forex market is the biggest financial market on earth. But only 5% to 10% people are successful in trading. It because it requires specific knowledge and skills to make profit. So every newbie should remember that they need to focus on sharpen their skills.
forex_trader_1786937
Medlem sedan Aug 23, 2020   142 inlägg
Sep 28, 2020 at 06:37
UweMoench posted:
Yes forex market is the biggest financial market on earth. But only 5% to 10% people are successful in trading. It because it requires specific knowledge and skills to make profit. So every newbie should remember that they need to focus on sharpen their skills.
True, took me over a year to develop strategy now I'm using back in 2008. Since then no going back till date. I always avoid contracts of some banks becauseonce they see you are successful, the will try to tire you down with contract.I prefer private banks and individual trading as I have freedom.
Medlem sedan Feb 07, 2020   41 inlägg
Sep 28, 2020 at 08:57
Pros Of trading

1.Low Costs
Forex trading can have very low costs (brokerage and commissions). There are no commissions in a real sense–most forex brokers make profits from the spreads between forex currencies.

2. High Liquidity
Compared with any other financial markets, the forex market has the largest number of market participants.

3. No Central Exchange or Regulator
Being an over-the-counter market operating across the globe, there is no central exchange or regulator for the forex market.

4. Low Capital Requirements
Due to tight spreads in terms of pips, one can easily start forex trading with a small amount of initial capital.

Challenges in trading

1. Lack of Transparency
Due to the deregulated nature of the forex market dominated by brokers, one actually trades against professionals.

2. High Risk, High Leverage
Forex trading is available on high leverage, meaning one can get profit/loss exposure multiple times of the trading capital.

3. High Volatility
With no control over macroeconomic and geopolitical developments, one can easily suffer huge losses in the highly volatile forex market.
Medlem sedan Jul 19, 2020   318 inlägg
Sep 28, 2020 at 18:48
Yes. You are absolutely right. It will help all the new traders to make their decisions easily.
Medlem sedan Jul 20, 2020   232 inlägg
Oct 28, 2020 at 16:34
The main challenge of trading is to handle the losses. Managing the risks properly. If you can not make proper deal with the losses you can not survive in this risky market.
Medlem sedan Oct 09, 2020   28 inlägg
Nov 20, 2020 at 06:07
The biggest benefit of trading Forex that I see is the leverage option and the only con I can think about is the high volatility.
Medlem sedan Nov 03, 2020   65 inlägg
Nov 20, 2020 at 08:19
Each has its own positive aspects, and I can say that there are indeed much more of them than negative ones.
Medlem sedan Jun 24, 2020   34 inlägg
Nov 20, 2020 at 10:52
There are pros and cons in each field. We got to see whether the pros are really benefitting for an individual and worth taking the risks for. In case of forex, the pros outweigh the cons for me.
Medlem sedan Jul 23, 2020   869 inlägg
Nov 20, 2020 at 16:49
EllisParker posted:
There are pros and cons in each field. We got to see whether the pros are really benefitting for an individual and worth taking the risks for. In case of forex, the pros outweigh the cons for me.
That’s true. I also agree. But traders need to know about both. It helps to grow as a trader.
Medlem sedan Jul 20, 2020   341 inlägg
Nov 20, 2020 at 18:57
Forex trading is not easy. You need proper knowledge and skills to make money from this market.
Medlem sedan Oct 07, 2020   104 inlägg
Nov 21, 2020 at 04:32
posted:
I found this below very useful, and newbies should always know about it
12 years ago I was a newbie too, but now a profitable proffesional. So always know what you are getting into.

Pro : The forex markets are the largest in terms of daily trading volume in the world and therefore offer the most liquidity . [2]  This makes it easy to enter and exit a position in any of the major currencies within a fraction of a second for a small spread in most market conditions.

Challenge: Banks, brokers, and dealers in the forex markets allow a high amount of leverage , which means that traders can control large positions with relatively little money of their own. Leverage in the range of 100:1 is a high ratio but not uncommon in forex. A trader must understand the use of leverage and the risks that leverage introduces in an account. Extreme amounts of leverage have led to many dealers becoming insolvent unexpectedly.

Pro : The forex market is traded 24 hours a day, five days a week—starting each day in Australia and ending in New York. The major centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London, and New York.
Challenge: Trading currencies productively requires an understanding of economic
fundamentals and indicators. A currency trader needs to have a big-picture understanding of the economies of the various countries and their inter-connectedness to grasp the fundamentals that drive currency values.

The Bottom Line
For traders —especially those with limited funds—day trading or swing trading in small amounts is easier in the forex market than other markets. For those with longer-term horizons and larger funds, long-term fundamentals-based trading or a carry trade can be profitable. A focus on understanding the macroeconomic fundamentals driving currency values and experience with technical analysis may help new forex traders to become more profitable.
Trading is really quite risky, but there are not much more advantages, you just need to approach everything competently and judiciously.
Medlem sedan Oct 07, 2020   104 inlägg
Nov 23, 2020 at 05:36
richardmarcus posted:
posted:
I found this below very useful, and newbies should always know about it
12 years ago I was a newbie too, but now a profitable proffesional. So always know what you are getting into.

Pro : The forex markets are the largest in terms of daily trading volume in the world and therefore offer the most liquidity . [2]  This makes it easy to enter and exit a position in any of the major currencies within a fraction of a second for a small spread in most market conditions.

Challenge: Banks, brokers, and dealers in the forex markets allow a high amount of leverage , which means that traders can control large positions with relatively little money of their own. Leverage in the range of 100:1 is a high ratio but not uncommon in forex. A trader must understand the use of leverage and the risks that leverage introduces in an account. Extreme amounts of leverage have led to many dealers becoming insolvent unexpectedly.

Pro : The forex market is traded 24 hours a day, five days a week—starting each day in Australia and ending in New York. The major centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London, and New York.
Challenge: Trading currencies productively requires an understanding of economic
fundamentals and indicators. A currency trader needs to have a big-picture understanding of the economies of the various countries and their inter-connectedness to grasp the fundamentals that drive currency values.

The Bottom Line
For traders —especially those with limited funds—day trading or swing trading in small amounts is easier in the forex market than other markets. For those with longer-term horizons and larger funds, long-term fundamentals-based trading or a carry trade can be profitable. A focus on understanding the macroeconomic fundamentals driving currency values and experience with technical analysis may help new forex traders to become more profitable.
Trading is really quite risky, but there are not much more advantages, you just need to approach everything competently and judiciously.
true that
Medlem sedan Nov 05, 2020   54 inlägg
Nov 23, 2020 at 06:39
We must not forget that any business has its positive and negative sides, it all depends on your attitude and mood.
Medlem sedan Apr 15, 2020   219 inlägg
Nov 23, 2020 at 11:10
The Forex market is the biggest financial market on earth. It requires very specific knowledge and skills to make profit. It is advantageous as well as risky also. Forex trading can be started at a very low cost, low investment is required and higher returns are expected from trading, but a risk is als associated with it as you can’t control volatility in the market.
The more your practice, the more you learn.
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