whtat are the disadvantages of forex?

Discussion in 'Newbie Questions' started by goodness, May 23, 2014.

  1. goodness

    goodness Trader

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    Can any one here tell me the disadvantages of forex, Forex involves high risk, do you think that is all the disadvantages of forex? please what is on your mind?
     
  2. Enivid

    Enivid Administrator Staff Member

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    The main disadvantage of Forex is that it is very risky, and many newbie traders do not understand that.
     
    Hafizmd likes this.
  3. Exness Support

    Exness Support Active Trader

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    I think the only disadvantage of forex trading is for people who dont wanna learn it properly and jump into it without any education, strategy and plan. And the disadvantage for them is they lose their money even before they realize they were not trading with a plan and almost gambling their hard earned money.
     
  4. vicknic

    vicknic Confirmed ProfiForex Representative

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    Forex is risky - True. The fact is that all form business is risky. Forex can be less risky for a trader is willing to make use of the Money management tools. There are the stop loss and take profit options that a trader to utilize and minimize loss. What about leverage and trade volume? Yes, a trader must understand how this two factors affect the size of profit and loss. In reality, forex has as much disadvantage as any other business.
     
  5. Fxpipper

    Fxpipper Master Trader

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    Risk is part of any business model, there's no business that is risk free. But of the lot, forex is riskier than the lot..and usually new traders wipe out their accounts within weeks mainly because they did not take the time to read, review, or research about fx trading. And then, there's the failure to use a SL..
     
  6. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    There is no disadvantage in forex trading. Yes it can be risky but that is not disadvantage. The main problem for many new traders is not succeeding in forex trading, that's because the lack of education, good risk management and not enough trading experience.
     
  7. hidayatberkah

    hidayatberkah Trader

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    I think that the disadvantages of forex trading is making us more addicted in here..
     
  8. aff1

    aff1 Trader

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    I think those the risk. Forex trading is very risky and you need proper understanding of it before starting investment.
     
  9. Fxpipper

    Fxpipper Master Trader

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    Yup,, I suppose fx trading is a tad addictive but that is mainly on account of the adrenaline rush..
     
  10. nalu

    nalu Confirmed ProfiForex Representative

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    The disadvantage is that it always very difficult for beginners to be successful trading forex and also you can easily loss large amount of money in forex. That is why it is important for beginners to practice before diving into forex.
     
  11. triplet

    triplet Active Trader

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    I think being risky is a disadvantage, where by there are chances that one can easily lose money most especially beginners who have little knowledge technique on how to trade the business.
     
  12. chief

    chief Confirmed Tickmill Representative

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    there's no such no disadvantage for every each investment field. regarding fx trading, there;s lot many room of flaw, for example risk are quite higher than any other investment program, you have to put lot of effort at your first years, lack of sleep.
     
  13. alexflemj

    alexflemj Active Trader

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    One of the disadvantages of Forex - getting too carried away from acumulating small profits and next thing you see your account being burnt. It is a mind game - understanding risks vs. greed, trading strategies and money management are very essential
     
  14. jezzykid

    jezzykid Banned

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    The only disadvantages I know of trading forex is that you can loose your hard earned money if the market goes against you; secondly, you may not have time for your family and friends especially, if you are too engrossed in trading.
     
  15. hyperscalper

    hyperscalper Trader

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    Forex is less Risk than Futures

    I completely agree that Forex does not have disadvantages relative to other areas of trading. On the contrary, Risk Management through multi-entry Cost Basis Averaging is up to 100 times better than in FX Futures.

    CNBC doesn't push Forex. The big firms are in Stocks, Futures, Options, but who takes Forex seriously?

    Well, it should be taken seriously as a solid trading area alongside all of the others. In fact, Risk Management is one of the strongest areas in which Futures traders (Currency Futures, at least) should move out of Futures, and into the much more manageable Forex spot markets.

    I used to provide software to Futures guys, and they all blow out because they are simply operating with Risk levels which are too high. Forex would allow FX Futures traders to manage Risk on a much finer grained level, and that is really not understood by the average trader watching CNBC on TV.

    Good Trading !
    HyperScalper
     
    Last edited: Jan 28, 2015
  16. ezikel

    ezikel Trader

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    the main disadvantage of forex is its unpredictability,unlike some other business whereby you stand a chance to know its season and peak moments,but in forex its simply impossible to know when the market would trend or of the trend would continue so traders tend to hope that they've made the right entry,for me this is the only disadvantage I can think of except if your trading with a wrong broker.
     
  17. duxingxia

    duxingxia Trader

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    It's a interesting question, forex is unpredictability, that means somtimes you have to make decision before market become clear, but it just the characteristic of forex, like many other speculation business.
     
  18. fxapex

    fxapex Active Trader

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    As you are earning there is no disadvantage, many people do say its not good and thats when they loose, and loosing is apart of forex one has to accept it..
     
  19. Fischer

    Fischer Confirmed IronFX Representative

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    The high risk evolved is probably the disadvantage of forex, but on the otherside what doesnt include risk in our lives?
     
  20. koyl

    koyl Trader

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    Forex is very risky which is one of the great disadvantage that is why some people find it difficult to trade in forex. And the forex market is very challenging to predict because it constantly changing. And so in the course of understanding the market most beginner tend to loss.
     

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