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why forex is so risky?

  • #21
  • Oct 21, 2011 12:05am Oct 21, 2011 12:05am
? Trader VS central banks these guys stand against you too?


do I understand this right?
  • #22
  • Oct 21, 2011 1:29pm Oct 21, 2011 1:29pm
The way to go about trimming the risk lies in the leverage. Often, newbies are attracted to the "1:400" leverage and deposit their money, without realizing that leverages can and will work against you on a dead trade.
In essence, if you're just starting new, make sure you start with micro accounts and low leverages - at least until you get more exp..
  • #23
  • Oct 22, 2011 1:05pm Oct 22, 2011 1:05pm
Thank you for your reply, this sounds good. I want to ask if you can direct me to some education material webcast, ...ect. I want to understand lots and spreads better. Two other questions. which are favorable trading sites? I guess, "you have to have a broker - I suppose there is no way around that?” I have seen tv commercials and heard webinars saying that some brokers will trade against you - "working against you". I can't see doing biz with such people after given them you money. Is this the kind industry we are investing in?
  • #24
  • Oct 24, 2011 10:11am Oct 24, 2011 10:11am
Risk Management plays a pivotal role where forex and other investment options are concerned. So yes, you will have to review some of the info online on forex and what you can do to minimize the risk.
And yes, you may encounter slippage [where the stop loss just goes up in smoke] and do not forget, some platforms do crash and you may was well say goombaya to the trade..
But all that aside, you need to research online on managing risk and review some of the top MT platforms for Fx trading..
  • #25
  • Oct 25, 2011 10:18pm Oct 25, 2011 10:18pm
http://www.irvinehousingblog.com/wp-...7/06/greed.jpg
  • #26
  • Oct 25, 2011 10:57pm Oct 25, 2011 10:57pm
this sounds like what Forex is albout! "imeasurable amount of variations that are impossible to predict."!

sd







Quoting longandshort
There are so many people trading the same markets on both sides when your are trading, each with different reasoning as to why this pair is doing that, and with those assumptions, speculations of the millions of people involved comes and imeasurable amount of variations that are impossible to predict. So that is one reason. Not being able to control ones greed is another. A natural human emotion.

Cheers
  • #27
  • Oct 25, 2011 11:06pm Oct 25, 2011 11:06pm
The lots can start from as low as .01 micro lot to standard ones, you may want to start off with micro and work your way up to the standard lot size. On leverage, it depends on where you're located and the brokerage..
[for example, US based brokerages may not offer you a high leverage when compared to ones located elsewhere]

Quoting sdsander
[color=black][font=Verdana]Thank you for your reply, this sounds good. I want to ask if you can direct me to some education material webcast, ...ect. I want to understand lots and spreads better. Two other questions. which are favorable trading sites? I guess, "you have to have a broker - I suppose there is no way around that?” I have seen tv commercials and heard webinars saying that some brokers will trade against you - "working against you". I can't see doing biz with such people after given them you money. Is this the kind industry...
  • #28
  • Oct 26, 2011 4:06am Oct 26, 2011 4:06am
Why forex is risky?
I dont think so, everything can become risky when you dont know what you are doing,

Risk is inversely proportional to knowledge, when you have enough knowledge the risk would be minimized.

Jin Shan
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #29
  • Oct 26, 2011 4:58am Oct 26, 2011 4:58am
It is so risky because it has huge profit potential.

It is just so!

You don't want to risk - put your money in the bank and make 3-5% a year.

Profit potential is low as a risk.

You don't want to risk, buy gold and sleep well.

Regards,

Josef
  • #30
  • Oct 26, 2011 7:21am Oct 26, 2011 7:21am
Quoting josef
It is so risky because it has huge profit potential.

It is just so!

You don't want to risk - put your money in the bank and make 3-5% a year.

Profit potential is low as a risk.

You don't want to risk, buy gold and sleep well.

Regards,

Josef
agree with you Josef.

High risk high return.
Low risk low return.

Jin Shan
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #31
  • Sep 9, 2020 2:34pm Sep 9, 2020 2:34pm
Risk is a common factor in this market. If you can deal with your risks, you can become successful in this market.
  • #32
  • Sep 9, 2020 8:23pm Sep 9, 2020 8:23pm
Forex trading is the most popular online business. Forex is a risky business but if you can trade by maintaining proper discipline then Forex will be much easier for you. Proper discipline means good strategy, money management, risk management, trading plan, trade management, etc. If all these things can be managed properly, then trading will be easier for you.
  • #33
  • Sep 9, 2020 11:34pm Sep 9, 2020 11:34pm
hello i am new and totally unsure, ie which are the best fx pairs to trade,and what time frame is best for intraday trading
  • #34
  • Sep 10, 2020 1:36am Sep 10, 2020 1:36am
yes its true , there is no trading platform in the present world right now which is more risky than Forex trading , because there is nothing 100% in there , and no one can predict the real faction of this market with certainly. and any strategies not work permanently here , market changes its own nature time to time , for that reason people consider Fx as more risky project.
  • #35
  • Sep 10, 2020 3:05am Sep 10, 2020 3:05am
Quoting Rainstopper
hello i am new and totally unsure, ie which are the best fx pairs to trade,and what time frame is best for intraday trading
which pair is more appropriate for you , it depends on your trading conditions , if love doing scalping should choose the pair which has most lowest trading spreads. otherwise there is a problem.
  • #36
  • Sep 10, 2020 3:31am Sep 10, 2020 3:31am
for ensuring better result from scalping
first of all you have to make sure the broker which allows trading concept such as this.
  • #37
  • Sep 10, 2020 3:32am Sep 10, 2020 3:32am
Forex is risky as the market is decentralise and volatile and every major news and events effects the market movements.
  • #38
  • Sep 10, 2020 9:16am Sep 10, 2020 9:16am
Quoting NathanAstel
{quote} which pair is more appropriate for you , it depends on your trading conditions , if love doing scalping should choose the pair which has most lowest trading spreads. otherwise there is a problem.
Yes you are right. Also we should choose pair that we understand the most. Every pair has some unique price movement pattern. Also it's not wise to trade too many pairs. We should choose a few.
  • #39
  • Sep 10, 2020 7:13pm Sep 10, 2020 7:13pm
Forex is only as risky as you want it to be. In reality its just as any other market, the main difference is you have more leverage available in FX and MM is the skill most people are not able to master.
  • #40
  • Sep 14, 2020 10:27am Sep 14, 2020 10:27am
Forex gets a false bad reputation of being risky not because the market is highly volatile but because of the attitude of traders who want to make huge profits in a very short period of time.
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