We all know about the advantages in the forex trading but there are some disadvantages also. There will not be any centralized market to allow some unprincipled brokers to trade for their customers. It is largely free, when compared to the stock and future markets; to influence date and client trades.
In the forex trading, the other investment opportunities cannot be matched simply and you are the one to responsible for both success and failure. It is very easy to become a millionaire through the currency trading but no one is willing to become proper forex traders, for that you must work as hard as they possible can.
Forex has bright and dark both sides of picture. Here we mostly loose in start .After some time we adjust our self with market. Forex facilitates traders in many ways and it is uncertain business where we can not have sure income even we are good in trading.
Thanks for sharing those information, it was very helpful for newbie like me. I’m not shaken with those disadvantages and I’m still willing to trade someday when I already have enough knowledge about it.
The main one is got to be that Forex takes quite sometime to learn. Many never really understand this, loose and drop out on the way. Worse still spread their failure attitude to more new guys.
Forex market have many advantage but also have disadvantage. Due to the fact that it can risky and that it always difficult to predict the market trend many find it difficult to trade forex. But we should know there are a lot of traders that are successful in forex trade and so we need to have that courage and learn from them not be discourage by the disadvantages.
I have seen this repeated over and over while reading about and researching FX Trading. It is also the main reason I am learning all I can about FX trading, plan on testing that learning out on a demo account, and then going live when I comfortable (as I can be) with the idea.
But, notwithstanding the above, am not going to stop reading & researching FX Trading. Obviously once I am actually trading, demo and live, will not stop reading up on information that could affect my trades.
I think that after you become best in one strategy, you should used it and do not learn any trading strategy or you will be affected. In which broker you trade sir??
The advantages of trading forex is that you can make a whole lot of money and possible become financially free; while the disadvantages is that you can loose your money if you don’t have a winning trading plan.
choughs kinda true… You should get some type of strategy backtesting platform to test your strategies first before you “go into the woods”. Forex Strategy Builder is a good example of such a program, even MT4 has a backtest part, though IMHO it is a bit “shaky” and some automated strategies can “cheat” it
Millions of people sink their whole lives into all sorts of businesses to lose it all every day. Restaurants, bars, boutiques, service businesses, factories, etc., fortunes are lost every day in every industry. Many of these businesses require the purchase of illiquid assets that can easily lose most if not all of their value. A great many of these require substantial costs to be incurred long before the entrepreneurs have any market feedback to know whether they have made a good investment. A forex position offers feedback to the trader in instant real time and can be liquidated at a tiny loss in the blink of an eye from anywhere in the world with the stroke of a key or click of a mouse. And yet I am supposed to believe that trading is more risky than starting a restaurant or putting a factory online?!??!? Give me a friggin’ break!!!
Don’t buy the bull**** that any of these other businesses are somehow less risky or that the psychological factors that make traders cut profits short and ride losses do not exist or are without effect in other businesses.
Most business owners resist cutting losses in all industries. This has been a subject in behavioral economics and entrepreneurial studies for decades. Entrepreneurs also tend to take risks that will be difficult to survive financially in the worst case scenario. And they cut profits constantly in their efforts to win customers. They overestimate positive news and underestimate negative news. They are typically overly optimistic about future sales, the collection of receivables, and the expenses they will incur. It is called “entrepreneurial naivete”.
If it were as easy to start a restaurant is it is to open a trading account, there would be the same rate of failure among fresh new restaurateurs as there is among fresh new traders. The rate of failure in either industry is not a function of a “rigged game” or malignant parties gaming fresh meat. It is simply a function of the positive bias biologically inherent to the entrepreneur.
You do not more often hear that “forex trading is risky” because it is more risky than restauranteering. You simply hear that more often because brokers and financial institutions are looking to protect themselves from lawsuits via full disclosure and restaurateurs do not require brokers that give disclosure at all. There are no adds in magazines, on TV, or on the web pushing people to open restaurateur accounts with full disclosure of the risks involved. But there are loads of such adverts for trading.
The fact is, forex trading can be far less risky than restauranteering if the trader knows how to take advantage of the liquidity and execution available 24 hours a day in that industry and unthinkable in food services. And trading has that advantage over almost all other industries.
I am sure forex online trading is more prospective for my future. In this case, I am really consistence in my daily trading activity in my broker I have joined, although I do not reach my profit maximally. Need long process.
There are several advantages and disadvantages associated with Forex currency trading. The truth is, this is a market that very few people really understand. A major reason why foreign currency trading remains shrouded in mystery is because it receives very little attention on the evening news. When was the last time you ever heard anybody talking about the performance of a particular currency? It’s extremely rare. That said, there are a lot of reasons why you may want to seriously consider trading currencies.
Disadvantage of forex is that we never are sure about profit . Any time uncertainty comes for loss even after long experience we can not make consistent profit. Good thing of forex is that it is affordable for every one in terms of investment and working of time for trading.
The biggest advantage with forex is also the biggest disadvantage.
The low barrier to entry, financially, means just about anyone can trade.
At least with most brick and mortar businesses you have the bank look at your business plan before they lend to you. With forex any idiot with a few hundred pounds/dollars and no knowledge can participate.
I don’t think so. In forex, it is possible to manage amount of profit or loss in every transaction. It is right if we can’t make sure to gain 100% profit but it is possible to make sure amount of profit to take with proper money management and risk management. And also, you can use certain risk reward ratio in order to maximize profit and minimize loss. You can’t make sure one transaction will end with profit or loss but with good money management, you can control how many profits or loss which can happen in every transaction.
In forex the advantage out weigh the disadvantage that is why so many traders are trading forex. And you are your own boss in forex because you are the one responsible for your trading decisions.
kinda true… You should get some type of strategy backtesting platform to test your strategies first before you “go into the woods”. Forex Strategy Builder is a good example of such a program, even MT4 has a backtest part, though IMHO it is a bit “shaky” and some automated strategies can “cheat” it