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why forex is so risky?

  • #181
  • Jul 25, 2023 12:52am Jul 25, 2023 12:52am
That's an easy one.
Trading is so risky, because it implies opportunity to earn solid sums within a short period. Any kind of activity, even if we take retail sales, imply a certain risk, but in trading it's higher because it affords to earn more funds.
Surely, these risk can be mitigated by proper risk and money management strategies, but you ought to have a particular experience to create thorough ones.
That's why many traders give up trading don't even immersing into it.
  • #182
  • Jul 25, 2023 10:46am Jul 25, 2023 10:46am
Because price action is random. :3 this is no1.
Trading is gambling. So gamble responsibly.
  • #183
  • Jul 26, 2023 4:13am Jul 26, 2023 4:13am
I stopped counting the reasons, and simply focus on what works and what doesnt on my hfm account, people will say no risk no reward and give you another 100 reasons but at the end of the day i dont think any of them will help increase the win statistics as much as simply pushing through and continue to grow you knowledge. P
  • #184
  • Jul 28, 2023 3:32am Jul 28, 2023 3:32am
Quoting Faum
That's an easy one. Trading is so risky, because it implies opportunity to earn solid sums within a short period. Any kind of activity, even if we take retail sales, imply a certain risk, but in trading it's higher because it affords to earn more funds. Surely, these risk can be mitigated by proper risk and money management strategies, but you ought to have a particular experience to create thorough ones. That's why many traders give up trading don't even immersing into it.
Forex is not risky. It's slow. The movement of the major pairs is not significant every year.

Leverage is the culprit. If you say Forex is risky, then you don't understand what it is.
  • #185
  • Jul 28, 2023 3:34am Jul 28, 2023 3:34am
Quoting jiggz
I stopped counting the reasons, and simply focus on what works and what doesnt on my hfm account, people will say no risk no reward and give you another 100 reasons but at the end of the day i dont think any of them will help increase the win statistics as much as simply pushing through and continue to grow you knowledge. P
Wrong thought!
If you think like that, then you'll burn your account. It's just a matter of time.

Your winning statistics are purely random. No such thing as that.

If you don't understand the nature of this business, you are moving towards destruction.
  • #186
  • Jul 28, 2023 4:14am Jul 28, 2023 4:14am
Quoting sdsander
can some one explain this, I have heard a bit of this on a webaniary and have little understanding? "Trader vs the broker ( in case of market maker " so the broker stands against you at times?
A bad broker can change your orders of wins to loses. This is why it's important to use legit brokers.

You can check basics on forex brokers with babypips.
Trading is gambling. So gamble responsibly.
  • #187
  • Jul 28, 2023 7:39am Jul 28, 2023 7:39am
Quoting Sovy
{quote} A bad broker can change your orders of wins to loses. This is why it's important to use legit brokers. You can check basics on forex brokers with babypips.
Lol, are there any brokers that will give you any favour? They are businesses, not charities.
  • #188
  • Jul 31, 2023 1:44am Jul 31, 2023 1:44am
The majority of the dangers have already been stated in prior responses. The greatest financial danger is trading with too large a position size. To avoid this, simply do not trade more than 0.01 lots per deal. If it is too dull for you, trading forex is probably not for you, in my humble opinion. Good luck with your trade!
  • #189
  • Aug 1, 2023 9:01am Aug 1, 2023 9:01am
Leverage maybe?!
  • #190
  • Aug 2, 2023 5:23pm Aug 2, 2023 5:23pm
Actually everyone fails because they think they can trade a price and time chart succesfully.

They try to trade SR.. fakeouts.. breakouts.. pullback.. trendlines.. candlestick patterns.. price patterns...

This type of strategies Will work about 50% of the time, so taking into account spreads and commissions, it's a net negative Game.

Apart from that, once in a trade, price Will be very choppy, It wont go straight to target, so most trader Will Chicken out an do stuff like trail stops.. close half and other type of trade management "techniques" that Will Make your winners smaller than your losses..

Facts are facts
  • #191
  • Aug 3, 2023 7:06am Aug 3, 2023 7:06am
Trading is a long-term game, similar to a marathon, rather than a sprint.
  • #192
  • Aug 4, 2023 2:58am Aug 4, 2023 2:58am
Quoting averied
Actually everyone fails because they think they can trade a price and time chart succesfully. They try to trade SR.. fakeouts.. breakouts.. pullback.. trendlines.. candlestick patterns.. price patterns... This type of strategies Will work about 50% of the time, so taking into account spreads and commissions, it's a net negative Game. Apart from that, once in a trade, price Will be very choppy, It wont go straight to target, so most trader Will Chicken out an do stuff like trail stops.. close half and other type of trade management "techniques" that...
Yeah that's why I try to make long-term trades based on fundamental analysis because despite noise price is eventually driven by evolution of its long-term factors which you can identify and take advantage of.
  • #193
  • Last Post: Aug 8, 2023 4:18am Aug 8, 2023 4:18am
Risk comes in hand with returns, for example money has zero risk but offer zero return as well.
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