Why to start trading Forex

fxmade2trade

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Your risk begins with your money sitting in the bank under the impression that the global currency is not politically and environmentally volatile. The investors that you have trusted to hold on to your life savings, your future have mislead you to believe that there high interest rates or cds, futures even bonds are the most accurate to gain a small amount of profit over the years they “hold on to it”. While the reality is every day, your money is gaining or losing value no matter where you have it. Now if you did position your money the right way or had a slight edge your ebb and flow can be the only way you stay from drowning in the global market.
Yes there is a strategy and yes there is risk, my many years of experience has taught me that risk is number one to look at when investing in anything. Many people get excited and just look at the gains not the consistency, drawdown, or average returns in fact major companies spend millions in risk management every year, why because it is just that important. When people think of risk and return the natural impulse is to assume that the higher the risk the greater the return, this could not be further from the truth. In fact, I am sure if you have spent any time in trading than you know high risk can equal no return and a loss of time and money. In addition, if you are new to it disappointment will be inevitable.
Trading Currency represents the largest asset class in the world that leads into “high market liquidity” that means it can be sold without having to reduce its price or even at all money or cash is the most liquid asset, it can be bought or sold with no loss of value. Most privet traders are who major companies and many banks turn to and seek new strategies to gain with trades involving hundreds of millions of dollars because forex has such limited or no supervision regulating it. Just to give you an idea of how many people are active in this market, $4 trillion dollars are traded daily.
With trading currency right off the bat you are gaining about three times what a bond could, but you do not lose money by penalization if you needed your cash early by some unseen emergency or collapse in your currency with bonds cds metals and futures funds are very difficult to obtain. With currency, you have it in liquid form already. Since your buying and selling currencies and going the direction of multiple currencies this diversifies your risk weekly instead of holding everything in US dollars i.e.: stocks , bonds, etc. Therefore, if the USD claps tour dealing with the GBP, USD, JPY, CHF, and NZD, AUD CAD etc. you are now in a major place of power instead of hoping the market wont claps as it has done many times before.
 
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