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Is FOREX trading Right For You

Discussion in 'Forex Discussions' started by painofhell, Mar 13, 2016.

  1. painofhell

    painofhell Content Contributor

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    This article discusses the advantages and disadvantages of trading the FOREX market so you can evaluate if the risks are worth the rewards.

    FOREX is the abbreviated termed used to describe the world's largest foreign currency exchange market where of 1.5 Trillion dollars is traded on a daily basis. This more than 100 times the trading volume that occurs on the NYSE, and is fast becoming the hot spot for individual investors.

    A market that was once only accessible to large corporations and government entities is now available to individual investors with online trading accounts. Despite the hype and excitement around this market, is it right for you? ACCESSIBILITY. Unlike most investment markets that open and close with the ring of a bell, the FOREX market is open 24 hours a day, six days a week.

    Trades can be made anytime the market is open from your home computer through the major trading centers located Sydney, Tokyo, London, Frankfurt and New York. Because of this you can act instantly upon news that may affect the market.

    LIQUIDITY. Because of the high volumes that are being traded in this worldwide marketplace, there will always be a buyer or seller available for your trade. The trades occur in the "spot" market so your position closes immediately, avoiding the risks sudden market swings. The liquidity also helps insure price stability and lower spreads.

    VOLATILITY. The FOREX market is always moving. Because of the liquidity of the market, you can make money when the market is moving up, down or even sideways. Volatility in other markets is oftentimes equated to risk or loss, but in the FOREX market volatility equates to profit potential.

    MARGIN. Trading on margin means that you can buy or sell assets greater than the value of your account. You may be able to trade on margin in other investment accounts, but nothing like you can do in the FOREX market. Because currency exchange rates generally only fluctuate 1-2% daily, you can leverage your investment dollar for greater returns.

    The most common margin is 50:1, but you can find some trading accounts that will up to 200:1 margin. For example, if your risk capital is $10,000, you could control $500,000 to $1,000,000 in currency contracts.
    This type of leverage gives you the potential to make profits very quickly, but you can also lose your money just as fast.

    It is recommended to have a disciplined investment plan that does not put all of your capital at risk and is followed by stop losses to protect your returns.

    PROFIT POTENTIAL. You do not need a large amount of investment capital to get started in this market. However, it is suggested that whatever capital you begin with is money that you can afford to lose.
    With FOREX mini-accounts, you can get started for as little as $300. With some discipline and a proven trading plan, you could realistically turn your $300 investment into thousands of dollars within a few weeks or few months.
    Without a trading plan, you could be out of the market within days.

    PAPER TRADING. Most investment companies will set you up with a free paper trading account so you can practice your trading plan for 60 to 90 days before you begin actual trading. It is much better to lose money on paper that it is suffer a real loss to your own pocketbook.
    Once you have proven your trading plan you can open up a margin account and begin actual trading.

    FOREX is often traded without commissions (the profits are in the spread), making it an attractive investment opportunity for those who want to trade on a more frequent basis.

    As you can see, the risks or disadvantages perceived in other markets actually become the profits and advantages of the FOREX market.

    As always, with any investment, one should proceed with caution, having an established trading plan and risking only money that they can afford to lose.
     
  2. Sharon Higgins

    Sharon Higgins New Member

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    You can’t guess these things, it is stuff that should be figured out by trading, I don’t mean by real account trading since not too many are Bill Gates here, hence we got to work out on demo or if there is any other alternative than that’s better. I prefer alternatives whether it’s no deposit bonuses or demo contest. I started off with 8 dollars no deposit bonus with OctaFX now, I have moved to demo contest which is happening every week especially the latest one Southampton Supreme. Now, I have managed to operate real account as well in between all this and that has really showed me that I belong here, so everyone should be following a similar pattern to know if they are really right for Forex or not.
     
  3. AwaberA

    AwaberA New Member

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    If you start working on Forex you can succeed if you learn much information about Forex. Be perseverance and discipline. Choose a reliable broker with an impeccable reputation, like freshforex. Do not try to earn millions immediately. Be prepared for losses. They are essential part of trading. Do not risk big money until you learn managing risks.
     
  4. 4xbug

    4xbug New Member

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    Forex is a right business for those who are willing to earn regular profits by investing through the risks associated in forex trading. Most of the new traders make losses in the start but they have to let go off it and should learn from their mistakes in order to become successful trader in future.
     
  5. sininfinity

    sininfinity Active Member

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    Loss is something even experienced traders will suffer. It can not be avoided. But it can be controlled and can be turned in to profit if a trader knows how.
     
  6. 4xbug

    4xbug New Member

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    I guess traders should learn with their experiences and past mistakes as how to avoid these losses.
     
  7. Sharon Higgins

    Sharon Higgins New Member

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    In my view Forex trading is right for all those who are discipline and have control over emotions; if we’re able to do that correctly then we’re going to find our self finding regularly. I was honestly not sure whether it could find regularly or not or basically say I was doubtful whether I belong in Forex or not, this is where demo helps you so much to understand whether you belong here or not. I am luckier that I never had to go through boring part of demo and the simple reason for that is OctaFX broker, they allow us to participate on amazing demo contest promotions where we can win serious prizes and also get the experience which helps us understanding whether we belong in this field or not.
     
  8. sininfinity

    sininfinity Active Member

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    From my point of view your guess is correct. What experience and mistakes can teach, nothing else in the world can teach a trader. But one has to learn to take lessons from their mistakes.
     
  9. Sharon Higgins

    Sharon Higgins New Member

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    That’s the important part; we got to learn from our mistake and for that to happen, we need to first that we made mistake, but unfortunately as often seen, we’re never willing to accept that we made mistake and that’s why there is no chance of correcting it, so first learn to accept mistake and then the process of learning from it starts. I have gained a lot of knowledge through various sites like Baby Pips and all that, but personal experience is just different and far more useful. I am grateful to OctaFX broker who has given me chance to enhance my experience through regularly participating on their demo contest; it’s with great prizes too making things ever so exciting for me.
     
  10. jologs

    jologs New Member

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    we can never tell unless we try, anything, not just forex really, i tried i liked it then i guess its for me..
     
  11. Sharon Higgins

    Sharon Higgins New Member

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    You said it right Jologs, we will never know unless we give it a go, but what else you said seems not the way, I mean it’s not about liking but it’s about ability, if we have the ability then great we obviously belong here, but liking it is something that everyone does especially with the high potential that this business carries, but that doesn’t mean it’s for them. The best way to figure it out is through practicing regularly and with help of OctaFX broker, I am able to do it fairly nicely and that’s especially with their epic demo contest like cTrader, it’s rocking with having 400 USD prize to be won, so that’s really cool and makes learning so great.
     
  12. sininfinity

    sininfinity Active Member

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    Well some people may think it is a business that they must like. Honestly at first impression no one would dislike it. It is different from other businesses. So to be realistic, one must determine how it is going to work out for him.
     
  13. tiptip

    tiptip New Member

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    nice to hear from you AwaberA, what are the likely chances of someone gaining profits when he starts trading.
     
  14. Sharon Higgins

    Sharon Higgins New Member

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    This is entirely dependent on the person, I mean if anyone is starting through gaining knowledge and experience then we might see him making good profits right away, but if one starts without gaining these things then we will obviously see such beginners struggle like we see so commonly. I work with OctaFX broker and with them we can learn things so well through their lovely educational section while things get even better when you participate on their demo contest like cTrader or Southampton Supreme, it’s excellent and ideally build for beginners with massive prizes and even have long term type contest in Champion, it’s all cool and something you will ever enjoy which is why I like it so much to work with them.
     
  15. Martha

    Martha New Member

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    I think Forex is very risky business and you can not succeed in it if you have no knowledge or very little about it. So every trader must know how to trade and how to make profit in it. I think with experience you can make good progress in forex and you can get experience only with practicing more in forex.


    https://worldcore.eu/Public/ForBusiness
     
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