Is Forex Trading For Everyone?
By David Stevenson
Successfully trading the Forex market requires you to have the discipline to follow some rules. If you can stay the course and follow your system, regardless of what the market is doing, you can make money trading Forex.
As with most forms of financial investing - stocks, futures, etc., there are risks. There are no crystal balls to show you what is going to happen next, so your exposure to these risks is largely controlled by your money management practices.
Casinos operate, normally with extensive profits, based entirely on risk management. They have learned how to take advantage of probability, which is the same concept traders rely upon, and turn the tables in their favor. They have learned that the longer they can keep a gambler in their facility, the better the odds they will end up with the gambler's money.
Many new or inexperienced Forex traders fall victim to the hype surrounding foreign exchange trading. The electronic trading platforms used by retail Forex traders today, with their ability to display hundreds of indicators and present price data instantly, confuse many traders and actually lure them into making poor trading decisions.
Like futures, Forex trading offers high leverage. The readily available leverage of up to 400:1 has destroyed many potential trading careers. New traders, unaccustomed to the volatile nature of Forex, often fall into the trap of over-leveraged positions, which easily wipe out trading accounts.
By David Stevenson
Successfully trading the Forex market requires you to have the discipline to follow some rules. If you can stay the course and follow your system, regardless of what the market is doing, you can make money trading Forex.
As with most forms of financial investing - stocks, futures, etc., there are risks. There are no crystal balls to show you what is going to happen next, so your exposure to these risks is largely controlled by your money management practices.
Casinos operate, normally with extensive profits, based entirely on risk management. They have learned how to take advantage of probability, which is the same concept traders rely upon, and turn the tables in their favor. They have learned that the longer they can keep a gambler in their facility, the better the odds they will end up with the gambler's money.
Many new or inexperienced Forex traders fall victim to the hype surrounding foreign exchange trading. The electronic trading platforms used by retail Forex traders today, with their ability to display hundreds of indicators and present price data instantly, confuse many traders and actually lure them into making poor trading decisions.
Like futures, Forex trading offers high leverage. The readily available leverage of up to 400:1 has destroyed many potential trading careers. New traders, unaccustomed to the volatile nature of Forex, often fall into the trap of over-leveraged positions, which easily wipe out trading accounts.
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