Forex trading is considered a high risk derivative. There are people who take classes to learn how to trade, yet a 100% rate of success is not fully guaranteed.
What makes Forex so risky?
• Unlike stocks, you cannot really queue for a desired price. In order to get into a trade, you have to pay a slight premium be it a Long or a Short. In other words, you are already making a loss by entering a trade. (similar to brokerage fees)
• In order to make it big, we need high leverage to secure good profits. Thus, losses will be at the same time well amplified.
• It is highly volatile since it is trading off 24 hours (from Sunday 5PM EST till Friday 4 p.m. EST). This is also because currencies are highly demanded in the world’s businesses.
So what can we do if we are …