Risk in Forex Investment?

Discussion in 'Forex - Currencies Forums' started by dariel2323, Aug 22, 2014.

  1. dariel2323

    dariel2323 Well-Known Member

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    I myself know some risks, but I would like every personal opinion, then I will analyze in my house if we agree. Your opinion is important. Thank you.
     
  2. bulding

    bulding Member

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    To say that the FOREX market is risky would be quite an understatement! According to some studies, over 95% of all currency traders actually end up loosing money over time. Remember, it's not how many trades you win or loose, it's how much you win in each trade. So if you win an average of 9 out of 10 trades, but you win $1 per winning trade, and lose $10 per bad trade, you will still come out negative even with a 90% win rate. Another thing to keep in mind is that a lot of traders assume they have unlimited money when they set up their quantitative models. There are only so many loses in a row your account can handle even if your win rate is 900 out of every 1000 trades. Of course, a 90% win rate is ridiciously fantastic and highly unlikely too.
     
  3. Dixons

    Dixons Member

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    Forex investments are EXTREMELY risky, I seriously wouldn't recommend it unless you really know what you're doing. You might, and probably will, end up losing a lot of your hard earned money.
     
  4. bintsk

    bintsk Active Member

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    Yup, I agree with bulding: it's too risky business.
    I would recommend it if you are into the game for several years and know the secret behind it ;) . Don't invest more than you're willing to lose.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Agreed.

    For me, it's always been about ending up with a big pile of money when it's time to retire - preferably while still fairly young. I don't care how I do it, just that I do it.

    For me it's NOT about taking inordinate risks just to impress myself or others then losing my $ at some point along the way.
     
  6. martinez

    martinez Active Member

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    You must cross your fingers and if you're lucky then you will be smiling all the way to the bank. If you happen to lose you should not blame anyone for it. Just wait for another chance and maybe luck will be on your side.
     
  7. dariel2323

    dariel2323 Well-Known Member

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    I liked your comment, I think that it will help me a lot. There are some things that I did not know. Thank you and happy day
     
  8. radex78

    radex78 Senior Investor

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    Forex trading included in high risk high return business, as trader can make huge profit only few day but also possible losing huge money on few days also, as trader before they thinking about easy earning through forex business, hence they need practice to learning how to minimize the risk and learn how to analyze the market based on technical analysis or fundamental analysis, risk management and money management very important here to manage money in uncertainty market condition and as trader also need strategy to catch profit.
     
  9. Liam

    Liam Member

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    A risk management system is very easy to use especially if you use a ready made platform. By entering a few variables such as the current prices of currencies you can manage your own trading risk.
     
    Last edited by a moderator: Jul 8, 2016
  10. Linda Smith

    Linda Smith Senior Investor

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    Forex market is a risky market. Risk is everywhere in this market. If you want to invest in forex you need to have the habit of taking risk. The more you take risk the more you can get the chance to make profit. A good broker like TP Global FX can help you to take the decision about trading. They can help you to make strategy to minimize the loss as much as possible.
     

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