Forex is too, risky so why you still doing trading

Everyone always says, that forex is risky. Is it that risky? If it is why are we still out here trading in this risky market. What you think about this.

yes it is risky.
expect to lose whatever you put in.

That’s why you need to be clear in terms of strategy - when to Enter, and when to Exit a position.
Once you place a trade, you immediately get hit up the cost of the spread.
eg. If using 0.1 lots, then that is around $7 with Activ Trades. There are better brokers out there than them though.

You need to make up that ground first before you start to make a profit.
The question is: how long do you hold in a trade before you exit ?

I urge you to study up on how signals should work, or find an suto trader that can work for you.

In nut n shell - Life is all about taking risks so the Forex Trading also. Nothing is free of risk but everyone says its risky to fade out your perception of making buckets of money in short period of time. It is to tell - “Hey man be patient if you have really made your mind and wants to make money, be prepared to loose something at first hand.” That’s it. Wish you luck.

Its not risky if you really know what you are doing. But the problem is usually people would think they know everything after spending 5 hours per day trading for a straight one year. Serioulsy you would need much much more than that. Not to mention to actually fix your brain…the way you think. Well once you have a proven system that suits you then trading is no longer crazy risky. The risk are still there but it would be just normal risk.

FOREX is risky as Gambling. If you do not have an edge, the casino will take your money. Find a way to get the probability on your favor and in the long run, you always be on top. Trading is a Business!

It’s a very basic finance concept at the end of the day - the higher the risk, the higher the reward. Let’s be honest, Forex is probably one of the riskiest investments out there, and that is why it’s also so incredibly lucrative. If there was no risk in Forex trading then none of us would be doing it.

Its actually the risk that makes it attractive to most. This might sound stupid, but it is the risk the level of potential risk that allows for the level of potential reward. That being said, the most succesfull traders are those that employ a significant risk management system and aim for good profits over the longer term. Otherwise its like gambling…hit or miss…boom or bust.

Im not a gambler and have never been but from what I have seen in forex I think making profit is very real.

I think people get too impatient or underfund and therefore increase the risk just so they can quickly see the money flowing. I mean some people would start with $100, they put all the effort and see a few buck increase, what do they do? they then increase the risk to double their account quickly to make them feel they have done something, result = blown account. After all who would want to spend alot of time in front of the PC for a few $? I know I wouldnt. Too little return make you want to gamble.

Like someone said, it is a business, you cant become rich overnight with $100. I believe in putting enough money, reduce the risk, be patient and the money will come in time.

This is comming from a newbie :stuck_out_tongue:

There is more risk in forex trading compare to other trading. It is a good source of making money and some experienced trading much profit as well. Therefore most of the traders stay in forex trading.

Thanks for sharing your esteemed opinions friends, more replies are most welcome to help us make profits.

I need to correct, or at least clarify, some statements that have been made here. The forex market is not what makes forex trading risky. Forex is actually one of the lowest volatility markets available (see Looking at Volatility Across Markets). It’s not the market that is risky. It is the behavior of traders which makes forex trading risky. You can lose just as much money in stocks or any other market if you don’t manage risk properly.

This is a very old thread, but now that it’s been “bumped” …

Absolutely.

And it’s important to appreciate this.

The reason that the spot forex markets have become associated with “risky trading” [B][U]isn’t[/U][/B] about the forex market itself, at all: it’s about the gambling-oriented behaviour of many of the participants it attracts (some attracted by exaggerated advertising claims, ready availability of very high leverage, ease of opening very small accounts, eye-catching promotions by counterparty market-makers pretending to be “brokers” while actually trading against their own clients and using promotional methods specifically designed to attract those with a gambling mentality, and so on).

Este es un sitio web Ăştil para su uso, si desea publicar aquĂ­. :wink:

Además, usted debe entender que la pregunta que está respondiendo se le preguntó hace más de 4 años! :o

Oh sorry … this is what I would say

I think if you do not know that the foreign exchange market can be very risky for you, that is, everything implies risk, we continue to make foreign exchange because it gives us money winning.

I go along with rhodytrader - the forex market is not inherently risky.

So there’s a puzzle in logic here - if a market is risky but the trader believes it is not, he will necessarily be taking an excessive risk.

So if the forex is not as risky as the trader believes it is, he will be taking a lower risk than justified. Where profit is the reward in proportion to risk, shouldn’t most traders be taking more risk and making more profit?

I like to accept challenges. Forex is risky and challenging business. With it we have to remain active ans planned every day . Forex keeps me away from laziness. I have to analyze market daily , see what is best time for me to enter in market. I can manage risk it is not a big issue For it I have to take reasonable low risk that will not tend me to high loss.

As funny as that sounds, it is the truth. But risk is like part of everything we do virtually. All we can do is learn to manage it and curb out a way to minimize it. The market is no different.

Greetings. The amount of leverage you apply plays an important role in the level of risk.

It’s risky if you don’t use smart money management, and if you don’t use a stop loss. So use a stop loss. It’ll tell you exactly how much you will lose if stopped out…so don’t risk too much. Also, when you win you have to win at LEAST 2:1. You do that, then it will “outweigh” your losses when getting stopped out.

Use a stop loss!

-Dr. Ninja

True, Forex trading is risky. As to why I’m still trading, it’s really quite simple – I enjoy it and I am getting better at it. I think. :smiley: