whtat are the disadvantages of forex?

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

  1. fxapex

    fxapex Active Trader

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    Yes the market is volatile and there is continuous risk, secondly you have to spend a lot of time in the market which might consume you leisure time.
     
  2. chriswhite010

    chriswhite010 Newbie

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    This market also has multiple advantages and disadvantages like many other financial markets. According to me, retailers or individual investor should try to take the help from professional broker rather than doing things individually.
     
  3. Bosschick

    Bosschick Newbie

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    Rightly said. Forex trade is risky and that is the most important part which you know in order to physic your mind towards what you should expect. Aside that it has its own advantages but when you prepare yourself from the negative side, you would be prepared and succeed!
     
  4. Sarah12

    Sarah12 Newbie

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    Apart from Forex being risky,few people truly understand how the currency trading market operates making it very difficult at times for newbies to have a firm grip on it,one worrying fact is your social life turns sour,you spend so many hours studying/reading charts etc..without socializing well ,becoming anti social
     
  5. Richard Johnson

    Richard Johnson Trader

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    One of the biggest disadvantages of the forex market is that it is fast and volatile. Although this means that you can make money fast, the downside is that you can lose money just as fast as well. Currency values can change without warning, making it difficult to accurately predict where to invest your money.
     
  6. harissi

    harissi Newbie

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    the high risk in forex trading is the disadvantage that you should look into and think about a lot before deciding to start trading you must follow a risk management strategy which is using 2.5 % of your total deposit
     
  7. The disadvantage of forex is that it might look easier than it is. It is built in a way that always give you the filling that you figured it all out, found the winning pattern.
    But the truth is more complicate and in order to succeed in forex you need mainly experience, dicipline, patience and mainly a winning trading and money management strategies
     
  8. ApipFx

    ApipFx Trader

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    Behind those disadvantages lies more advantages ahead. You just need to train yourself and getting use to it. And also, remain calm every time you're about to execute a trade. Don't take it rush and don't be greedy, it might trap you into an unsuccessful trader.
     
  9. radex78

    radex78 Active Trader

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    Disadvantages of orex is any trader mght they losing money in forex trading activity, but also advantage forex is any trader they have possible to making money from home, but to treat forex as source of income required good skill and also knowledge, and also strong mental as trader because in forex profit and loss is common thing.
     
  10. Andrew101

    Andrew101 Active Trader

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    Leverage risk for me is one of the disadvantages. There is unpredictability of the price and the rate of the currency which primarily give higher profit or a huge loss. So one has to concentrate and well-informed about the forex market where future forecasting can be precise and also profitable.
     
    Zak Hasmunir likes this.
  11. myfxpt

    myfxpt Master Trader

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    I only see advantages with Forex trading. I agree that it is risky and perilous for the newcomer, but then, what market isn't? I've lost more money trading shares than Forex! If you lack the necessary skills and knowledge, you should stay away until you acquire them...again, this goes for any market. But if you have the skills, Forex offers several key advantages: (1) Easy access regardless of current financial status - leverage, if used in moderation, can turn a small account into a large account far quicker than outright share trading or property ownership, (2) the online nature of this business allows anyone with internet connectivity the choice to choose a broker from around the globe, (3) there is an abundance of free information available, and trading platforms and analysis tools are free too, and (4) unlike the snobbery that often resides at the "big end" of town, players in the Forex market are far more down-to-earth and willing to share and assist in anyway they can. Earn Forex is a great example of this, as are many other Forex related websites.
     
  12. Ally

    Ally Newbie

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    High Risk involved, Complex market situations, No transparent reasons, no assistance on learning and very high volatility during bad market conditions are some of the disadvantages of trading in forex market. Moreover, it’s actually quite difficult to trade in this specific market. You must have a vigorous trading plan to become a successful trader.
     
  13. myfxpt

    myfxpt Master Trader

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    These are disadvantages?
     
  14. Alexfx79

    Alexfx79 Active Trader

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    I think people here talk about understanding that risk but not about risk itself. It's a big problem that people come to Forex with great inspiration believing in fast getting of a huge net worth and blow their accounts as a result. Who tells them such tales about easy wealth? Don't know. But 90% of newcomers hope to make great money in a pair of months. That's not so good at all....
     
  15. Ally

    Ally Newbie

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    Hey myfxpt (lol, :p because i don't know your name)
    According to me these are the disadvantages that does impact your trading capabilities negatively. However, some traders might not acknowledge them as disadvantages because of broader market factors and risk associated with trading. it's only how you take it !
    in this market what goes around, comes around.
     
  16. myfxpt

    myfxpt Master Trader

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    Risk creates the opportunity for profit. High risk equates with high profit potential. All you and I do is manage risk via our respective trading styles. If we do a good job, we get paid. Take away the risk, and you have no market.
     
  17. radaway

    radaway Trader

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    at the end of the day you are 'betting' your money on an economy (will it go high or low). betting equivalents to a gamble and it will have losers and (few)winners too.
     
  18. Daniel Richards

    Daniel Richards Trader

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    There could be like hundreds of disadvantages! But if you have patience, if you can keep cool at difficualt times and if you are eager enough to make money from forex, you can overcome the disadvantages. Most traders lack of these qualities and on the process they don't get what they would like and end up being among 90% looser!
     
  19. Ally

    Ally Newbie

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    You are Right ! It's only how you take it.
     
  20. Andre55

    Andre55 Newbie

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    Of course the risk is, you need to spend time and to follow all
     

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