Is forex exchange trading a high-risk investment? When the relatives and friends around you heard that you want to invest in forex trading. Most of them would say that they are very risky and persuaded you. “Don’t buy, you will lose, you understand it.” There are also many online social media sharing many stories. There are countless failed cases such as “I lost all my savings”, “I bought a lot of goods with high leverage and the result is heavy responsibility”. Therefore, it is easy to give people the illusion that forex trading are high-risk.
This is because most people don’t know that what is forex trading. They rely on their past life knowledge and instinctively feel high risk. If they listen to relatives and friends around them say high risk. They consider it high risk and they have no thought at all.
In fact, the reason lies in the psychological point of view. Anyone’s first feeling about things that are not understood or unclear is that they have psychological fear and they feel very upset and feel very dangerous.
Is foreign exchange trading high risk?
Now, I tell you the answer. The answer is high risk. It is indeed very risky to invest in forex trading under the complete ignorance and lack of knowledge. But as long as you learn and absorb knowledge in a step-by-step manner while continuing to practice and improve your trading skills. Then forex trading is not necessarily a very high risk investment products.
To give a simple example, it’s like primitive people learning to make a fire, or children learning to use sword and scissors. If you avoid learning because you feel dangerous. You will miss many useful and convenient tools in your daily life. In fact, We should adopt a positive attitude. We must first understand the dangers of these tools and then learn how to apply them step by step.
You only need to avoid the most dangerous places. Forex trading is actually one of the most stable investment products that can obtain large returns.
What kind of people think that forex trading is the highest risk?
Those who feel the highest risk in forex trading are usually the ones most afraid of losing money.
There will always moment when you lose money in forex trading. I told you that you won’t lose money and you won’t believe it. However, everyone should extend the time to a week, a month, or even a year. During this period of time, when the money is lost. The loss is controlled and the overall account becomes positive after the loss. This is the most correct way to invest in forex trading. We should regard loss as the cost of future profit. As long as we hold this positive attitude and are proficient in trading skills. Forex trading will bring you rich returns.
People who are afraid of losing money usually feel very uncomfortable after a transaction loss and never forget it. Why do they do that? It’s just because they lack the idea that any investment must have a cost or they have a gambling mentality when placing an order.
Forex trading is a pragmatic investment method that uses professional trading techniques to accumulate income bit by bit through continuous trading in compliance with the rules. It is not like a desperate gambling game. As long as you learn enough knowledge of forex trading. You can be prepared to avoid loss expansion when investment transactions encounter losses.
Most people think that foreign exchange trading is a less popular investment, and it is full of many questions and uncertainties.
In any field, there are many things to remember when you first get started. Although forex trading will encounter a lot of difficulties at the beginning and the psychological challenge will be great. As long as you stick to it, you will soon learn the principles and technical terms of foreign exchange trading.
The trend of the foreign exchange market is sometimes easy to predict, but sometimes elusive
When the market trend is easy to predict and when the trend moves in the direction that you predict, the profit gained will increase rapidly. At this time, you will feel that you are so powerful. Even beginners can easily make money in the foreign exchange market and even feel that you are a foreign exchange investment genius. But in fact it will not be so lucky every time. After the market trend is easy to predict, there are often trends that are elusive even for experienced foreign exchange traders. The so-called elusive means that it is difficult to predict future price trends in the market. Most of this situation is not easy to profit, and the chance of losing money will increase accordingly. But because experienced traders know how to avoid serious losses in this situation and do a good job in risk management. They can maintain a long time in the foreign exchange market and they can continue to accumulate profits from it.
It is easy to predict the trend in the foreign exchange market to increase profitability and reduce losses when it is not easy to predict the trend. This is the secret of survival in the foreign exchange market.
One important point to remember is that some people find trends that are easy to predict, while others find it difficult to grasp and predict. This is because everyone’s experience and trading skills are different and some people like short-term trading, but some people prefer long-term trading. Therefore, whether each trend in the foreign exchange market is easy to predict or difficult depends on everyone’s accumulated experience. After having enough experience, they can truly understand it.
Previous Article – Forex Trading teaching : How much principal should I prepare at the beginning? (Introduction to foreign exchange trading (2))
The next article will explain who are most of the investors in forex trading?
Other articles:
－Introduction to foreign exchange trading: what is foreign exchange margin trading? (Introduction to foreign exchange trading (1))
－catch to short time achieve success
－You must develop good habits to succeed. 5 practical and simple methods
advertising
