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More risk, more profit: is it true?

  • #1
  • First Post: Edited 10:37pm Jan 23, 2013 1:43am | Edited 10:37pm
Many people thinks that forex trading is a easy and profitable business. But it is also a risky business too. Is it true?
more risk, more profit....
  • #2
  • Jan 23, 2013 5:58am Jan 23, 2013 5:58am
Its depend of every trader. If you are a gambler forex is a higher risk game. If you are a professional speculator forex is similar to another bussiness.
Forex is simple but not easy.
Where is diference?.
In every trader.
90-95% retail traders loss his capital. Why?.
There is no only one reason for it but there is only one answer. Cause 90-95% retail traders are gamblers.
There is a hindsight mistake to dont understand that forex is most simple that you could accept. This is start of end for this 95%.
Regards.
That which you give to others, life will return it in spades
  • #3
  • Jan 23, 2013 11:30am Jan 23, 2013 11:30am
more risk = more profit

more risk = more loss

not only profit with more risk ...
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  • #4
  • Jan 23, 2013 11:46am Jan 23, 2013 11:46am
forex is high risk. if you don't know much about forex and you want to play then you are a gambler. better keep practice with demo account to understand comfortable and suitable technique before you play the real forex
  • #5
  • Jan 23, 2013 11:47am Jan 23, 2013 11:47am
Less risk = more profit.

end of story
  • #6
  • Jan 23, 2013 2:38pm Jan 23, 2013 2:38pm
Risk what you are comfortable with.
  • #7
  • Jan 24, 2013 1:35am Jan 24, 2013 1:35am
yes, it is a very risky business if you don't know what you are doing.

just as you wouldn't do brain surgery on someone, after reading 1-3 books, you shouldn't trade after reading 1-3 books.

that' s what people don't understand. To be world-class (an in this game world-class means making more than 15-20% PER YEAR !!!) you have to put in the hours and years. Thousand and thousand of hours !

but hey, who wants to put in thousand and thousand of hours ? everybody want to make money fast and easy
Twitter: @forexpokerpro
  • #8
  • Jan 24, 2013 3:09am Jan 24, 2013 3:09am
Quoting angelnish
Many people thinks that forex trading is a easy and profitable business. But it is also a risky business too. Is it true?
more risk, more profit....
Two things you need to research before you start trading are drawdown and expectancy. Look at risk from this point of view and you may stand a chance. If you don't you may as well just go to a casino.
Gone to a better place
  • #9
  • Jan 24, 2013 6:46pm Jan 24, 2013 6:46pm
Yup! More risk you are willing to take some, you can make some good money. The trick, though is in converting these trades to actual profit.
  • #10
  • Jan 25, 2013 5:07am Jan 25, 2013 5:07am
the hallmark of good trading is trying to get the most profit out of the least amount of risk possible.
  • #11
  • Jan 25, 2013 5:38am Jan 25, 2013 5:38am
more risk = more profit is fact of business in starting stage
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  • #12
  • Jan 25, 2013 6:33am Jan 25, 2013 6:33am
Quoting aspiring25
the hallmark of good trading is trying to get the most profit out of the least amount of risk possible.
Yes. You must find a system/method that provide you a very low risk entries for infinite yield.
Thats simple.
Regards.
That which you give to others, life will return it in spades
  • #13
  • Jan 26, 2013 1:19am Jan 26, 2013 1:19am
Yup! You can minimize that risk with a good MM but bottom line, more risk will lead to more profit PROVIDED you know how to trade well,
  • #14
  • Jan 26, 2013 12:00pm Jan 26, 2013 12:00pm
the question is:

how well do you handle risk?

hint: do you pee your pants when a trade is on
  • #15
  • Jan 28, 2013 4:56pm Jan 28, 2013 4:56pm
If you become a good trader who can come up 3 out of 4 weeks, and in that losing week lose no more than what you gained in 1 of the 3 successful weeks, risk means nothing. Why? Because of compound earnings. In time your account will grow.

But it will only grow with consistent earnings -- regardless of the risk levels.
  • #16
  • Jan 28, 2013 5:27pm Jan 28, 2013 5:27pm
In my opinion FX trading is a full time profession as you need to study lots of math and finance just to understand currency trading with all its details (start with margin call, drawdowns etc). Once you earned your "profession" by learning for a couple of months, you start trading demo accounts. Again for months.

Once that's done with good results, go live and you should succeed. As you did your homework. But if you just jump in with your credit card, place an order and hope to double your cash ... nope, won't work very long and your account is blown up.
  • #17
  • Jan 29, 2013 2:40am Jan 29, 2013 2:40am
Quoting InsomiaFX
In my opinion FX trading is a full time profession as you need to study lots of math and finance just to understand currency trading with all its details (start with margin call, drawdowns etc). Once you earned your "profession" by learning for a couple of months, you start trading demo accounts. Again for months.

Once that's done with good results, go live and you should succeed. As you did your homework. But if you just jump in with your credit card, place an order and hope to double your cash ... nope, won't work very long and your account...
This is very true. If you don't understand the expectancy mathematics, or should I say arithmetic, of your strategy then there is a danger you might think you are a poor trader if you have a string of losses, or what is worse, accidentally do well.

In other words, it's not all that difficult to learn about risk management but it can be difficult psychologically to apply it consistently.
Gone to a better place
  • #18
  • Jan 29, 2013 3:39am Jan 29, 2013 3:39am
Quoting InsomiaFX
In my opinion FX trading is a full time profession as you need to study lots of math and finance just to understand currency trading with all its details (start with margin call, drawdowns etc). Once you earned your "profession" by learning for a couple of months, you start trading demo accounts. Again for months.

Once that's done with good results, go live and you should succeed. As you did your homework. But if you just jump in with your credit card, place an order and hope to double your cash ... nope, won't work very long and your account...

I agree.
  • #19
  • Jan 29, 2013 4:28pm Jan 29, 2013 4:28pm
Yeah, it calls for a lot of hard work, effort on the trader's part but then again, all the good things in life are not free..
  • #20
  • Aug 25, 2013 1:29pm Aug 25, 2013 1:29pm
Risk is good in Forex but it is more important that not to take too much risk in Forex trading will result in huge losses also. Trader should trade with proper trading plan and strategies to minimize the loss factors.
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