How risky is forex trading?
- Thread starter danielelton
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Hello, I am new to trading but from what I'm reading and learning I can tell you that with a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Due to the nature of leveraged trades, a small initial fee can result in substantial losses and illiquid assets.
It is a super risky market. Many have lost their life savings here because of their greed and lack of skills.
Yes, trading offers you the possibility of protecting yourself against risks but you just need to have the will to impose certain rules. Trading becomes risky due to the misuse of the tools available to traders.
Hi Akwin, you're correct that leverage can and will significantly increase your potential losses. With daily swings in currencies seemingly so random, I avoid day trading and focus on long term trends instead.
Hello topdog20,
Hope all is well.
Your comment is highly valued, just want to ask you about the long term trends, is it profitable and how do you find the tend of stock?
I'm excited about learning more about this.
Best Regards,
Akwin
Yes, my friend lost his house and his wife left him. His life is ruined, but another friend has been making money on this business for many years, that's why I came here to talk and learn the secrets of trading
Forex is considered a high risk market, that's true.
But how risky it will be for you depends on how risky you make it. You have to learn and practice a lot before you can become a successful trader, but risk can be controlled to some extent by learning proper risk management strategies such as good position sizing, stop loss orders, etc. In short, if you approach it in a smart and careful way, you can avoid losing large sums.
But how risky it will be for you depends on how risky you make it. You have to learn and practice a lot before you can become a successful trader, but risk can be controlled to some extent by learning proper risk management strategies such as good position sizing, stop loss orders, etc. In short, if you approach it in a smart and careful way, you can avoid losing large sums.
Agreed, the risk depends on how the trader is trading. By the way, how important do you think the usage of SL is?
I think it is pretty important, every trader should learn how to use it in my opinion. It's a great tool.
Stick around. The "details" will reveal themselves extremely quickly. Good luck!
If it were easy, then more people would be doing it and making huge amount of money. So, no, it is not easy. But the more you work with dedication, more easier it becomes.
You are free to choose the amount of risk you take by adjusting leverage and lot size as well as choosing periods of high medium or low volatility in the market. However bear in mind that risk-return don't have linear relationship as increased risk produces changes of equity of greater magnitude and big loss is much harder to manage emotionally than series of small losses, they look more manageable, IMO
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