why forex is so risky?

Money management is extremely important in trading. By far most of individuals slump in trading since they don't take after incredible money management rules. You can't risk more than 2% of your capital. You can take one trade or a couple but total risk should not outperform 2% of your capital

its risky because not many people know what they are doing.

Forex trading is considered risky due to several factors, including high volatility, low transparency, and the lack of regulation in some markets.
In the foreign exchange market, currency prices can fluctuate rapidly and unpredictably, making it difficult for traders to manage risk. Even experienced traders can suffer significant losses in a short period of time due to unexpected events or market shifts.

In addition, the lack of transparency in some forex markets can lead to conflicts of interest and unethical practices, further increasing the risk for traders. Additionally, in some countries, the forex market may not be as well regulated as other financial markets, leaving traders open to fraud and other abuses.

However, it is essential to note that while forex trading does carry a higher level of risk, it also offers the potential for high rewards. As with any investment, it is essential to thoroughly research the market and develop a solid understanding of the potential risks and rewards before making any trades.

In the end, I can say forex trading can be a risky investment. Still, with proper education, research, and risk management strategies, traders can minimize their risk and increase their chances of success.

In Forex, you can lose all your money in one day if you don't know how to trade.
Trading is a big risk.

trading is not a big risk omgggg, how do you risk if you have a high win rate strategy? yall got used to think like loser

Forex can be risky for some. But it is a great opportunity for people who are willing to learn about trading and earn money.

nice XD, but the biggest battle is not the bull vs bears, but with ourselves. Making peace with loss and not getting too excited. It's like balancing the ying and yang. Since we will experience loss every now and then. But I think the key is risk management and maximizing automated pending orders (buy stop, sell stop, buy limit, sell limit) It helps to calm down a little bit.

Forex prices are highly volatile and can fluctuate rapidly, making it difficult to predict market movements. This unpredictability can lead to significant financial losses for those who do not manage their risk effectively. On the other hand, those who are skilled and experienced in trading may be able to capitalize on these fluctuations and generate returns.So yes, willing to learn and practicing in that direction gives some great opportunity.

Forex has become mainstream in recent years, so people don't treat it as a job.
Some people think it's roulette with a 50% chance of winning (either the chart will go up or down).

Most of the risks are mentioned in the previous replies. The biggest risk, financially, is trading too large of a position size. Avoiding that is simple, just don't trade larger size than 0.01 lots per trade. In my own humble opinion, if that is too boring for you, then trading forex probably isn't for you. Happy trading! - G

Forex trading is risky because the market is volatile and prices can change quickly. Trading with leverage can also lead to bigger losses. On top of that, some brokers may engage in unethical practices that can harm traders. To stay safe, it's important to do your research, use risk management tools, and have a solid trading plan.

Umm, I think forex can be risky due to high volatility, excessive use of leverage, and lack of regulation. Regulations regarding forex trading may vary from country to country. This could create a higher level of risk if we don’t choose the right broker

My first I’m guessing 6 months with a live real forex account I would swear there was a literal person watching my trades on the back end and trading against me. Had to be. 2 pips away from a runner and my stop is hit??? Conspiracy!!!! Then I learned to chill the heck out this is just bad trading on my part (bad choice of stops etc) that was probably the first hurdle to get over at least for me I went searching swearing my broker was betting against me (and they probably are but that wasn’t the reason I was losing trades). Big eye opener.

The Forex market is very risky, especially for beginners.

I personally know people who started trading with a few hundred dollars, lost it in one day, said it was all stupid, and now talk everyone out of trading.

Hi everyone, I've heard 90% of new traders loose 90% of their capital in the first 90days of trading.

Why is it so?

I feel it's due to being new to the markets and lack of knowledge.

I'm not sure though

Forex, while not inherently risky, is predominantly characterized by slow-moving major currency pairs. The true source of risk lies in the utilization of leverage, which amplifies both potential gains and losses, without any additional complexities.

Why is forex trading like a roller coaster? Because it's full of ups and downs, and you never know when you'll be screaming or laughing!

lol

Agree!