Forex Investing - Risky Or Rewarding?

[Mgavin]

Personally I see investment as an opportunity to either profit or lose from a specific portfolio or a business opportunity. now, when you mention investment in the forex market you were also referring to active trading which is a little different in my opinion unless you invest in a specific currency in order to yield a great return over a longer period of time.
Another method of investment in the forex market will be in particular winning strategies which capitalizes on a group of trades made on an account of which you are vesting your funds into.

[ExperSignal]

Trading is very similar to gambling. It can be addicting and full of emotions. To counteract the emotional aspects of trading, you should have a trading plan BEFORE you enter any trade. This plan should be the result of testing and research that fits your trading style.

Trading is a learned skill and you have to grow into it. Stay small while you are learning and slowly scale your position size up. Just because you can trade $50,000, doesn't mean you should. Trade with a small amount of capital until you have proven you are successful. Then start slowly increasing the size of your trades.

Many traders jump in too fast without doing any research or testing and blow out their accounts very quickly. Take your time and you can learn it.

My answer to the question of risk/reward is "it depends." No two traders are the same. We all have different goals, capital, experience, etc. Part of trading is discovering what kind of trading you like, what time frames, etc. Part of that discovery process is finding the ideal risk/reward blend for you.

There is no right answer.

[devis77]

Investing is a very strong word. It's more like a method to increase your income but only if you make a lot of effort. If you look for investment, cfd trading is probably more good.

[NazlyScarello]

Luck is not the factor in Forex. We should have to develop our trading skills daily. don't believe others such as luck. You should have some training in analysis part to avoid thinking about luck.

[Fxpipper]

When it comes to trading, emotions need to be checked at the door and believe me, that's easier said than done - esp when you watch the Dollar take a dive when indications are to the contrary. But frustration, relief, joy and the whole roller coaster is part of the package you get when you start trading in the currency market..

[Peter Brandley]

The risk in forex is dependent on your trading skills and analytical ability. There is such a thing as Risk Management. If you can implement risk management very well, then forex will have reduced risk for you but if you do not implement risk managment, then forex will be too risky for you and you might come out with many blown accounts.

[colintsui]

Originally Posted by Enivid

Is it different from 1/3 ?

lol

[mr.gardner]

It is very difficult to stay profitable in the long – term. It is better on fix your trading style on strong signals and never allow your emotion to make you lose more then you can afford.

[Astro_Forex]

I agree in that Forex can be a little addictive, but only if you allow for it. But there is a lot of math involved, and an emotional component from the world market that gambling does not have.Therefore you will need to develope a BIG taste for math.


Yes, I was that kind of brainiac student in HighSchool back then...

[Dominator4fx]

Originally Posted by Astro_Forex

I agree in that Forex can be a little addictive, but only if you allow for it. But there is a lot of math involved, and an emotional component from the world market that gambling does not have.Therefore you will need to develope a BIG taste for math.


Yes, I was that kind of brainiac student in HighSchool back then...

We have to learn to be able to manage the Emotions well so that we can continue trading since most of the times the markets are not stable at all but we need to maintain our cool minds