How risky is forex trading?

Akwin

Trader
Oct 12, 2020
52
10
9
33
Could anyone tell me details please
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.
 

Akwin

Trader
Oct 12, 2020
52
10
9
33
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.
 

vicjon1995

Active Trader
Sep 29, 2020
217
30
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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.

I totally agree with you Awkin.
 

danielbro

Trader
Nov 26, 2020
60
11
9
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One thing to understand is that when doing forex trading, the currencies tend to be in high volatility most of the time, which results in high risk if you do not know how to control that.
 

hk_09

Banned
Oct 30, 2020
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12
19
40
Forex is highly volatile market, which is why risk tends to be higher here. Also if you are into high leverage trading, then the risk quotient further increases. Risk management is quite essential here.
 

topdog20

Trader
Nov 16, 2020
8
0
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42
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.

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.
 

Akwin

Trader
Oct 12, 2020
52
10
9
33
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
 
Jan 27, 2021
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It is a super risky market. Many have lost their life savings here because of their greed and lack of skills.
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
 

Dora_WalletInvestor

Active Trader
Aug 17, 2020
301
46
44
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.
 
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Reactions: vicjon1995

hk_09

Banned
Oct 30, 2020
89
12
19
40
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.
Agreed, the risk depends on how the trader is trading. By the way, how important do you think the usage of SL is?
 

Jerry_Ken

Trader
Dec 11, 2020
57
5
9
33
Forex is indeed a risky thing. To survive in the game, you have to have a sound risk strategy to manage it , then only you can see profitable results.
 

btseen

Banned
Jan 17, 2020
42
14
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Risk is prevalent in every thing and so is the case with forex. Have to formulate a good risk management strategy, to stay in the field for long.
 

SmartX

Newbie
May 27, 2021
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I agree that it is somewhere difficult to trade in forex but sufficient knowledge and skills can always prevent you from encountering risks.
 
May 31, 2021
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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.
 

sunar14

Banned
Jan 17, 2021
77
9
19
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Could anyone tell me details please
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