Saturday, November 20, 2010

Understanding Forex Risk

Forex risk is a subject that deserves careful consideration. Individuals who have found the key to trading Forex have probably lost all the funds in their trading account... more than twice.

You can make money trading Forex, but there are no guarantees you will make money.

It is generally accepted that a new Forex trader
will lose their trading funds five times before
they begin to show consistent profits.

There are a HUGE number of traps, any one of which is capable of swallowing your trading account whole! Do yourself a favor... pay very close attention to the risk statements which most brokerage firms have you sign. Not only is there a risk of you "trading away" all your capital, but there is also a danger the brokerage operation themselves may go under, taking your money with them.

There are ways to reduce your exposure to Forex risk... but you can never completely eliminate it. Do not, for even an instant, believe claims of guaranteed success from "system sellers" out there.

There are, however, many things you can do as part of your risk management to swing the "odds" of success in your favor.

You cannot buy a "system" that will
guarantee trading profits


Never Trade with Money You Can't Afford to Lose!

Here is something to think about...

When trading, prices either move up or down. They never stay the same. Your goal, as a trader, is to speculate which way the price is likely to move, trade in that direction and then exit your trade with a profit. Sounds simple enough!

Professional traders generally agree on the following - give 2 new traders an equal amount of money, have them trade a position in opposite directions, and they are likely to both lose money. Try this same tactic on 2 experienced traders, and they are likely to both make money!

A Conclusion? You have your work cut out for you to become a trader who takes profits from the market. Read and understand everything I offer you on this website... it will help you become a better trader, which in itself will help reduce your Forex risk.

Disclaimer

Forex trading is not appropriate for everyone. There is a substantial risk of loss associated with trading this market. There has been no system or method developed that can guarantee profits or ensure freedom from losses. Losses can and will occur. No representation or implication is being made that using the information on this website or any of the material available for download will generate profits or ensure freedom from losses. This material is for informational purposes only.

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