Forex is too risky, so why you still doing trading?

[nilu]

if there is no risk then no chance to get more funds than what we invested. But here if we start trding by learning things then it will be easy and we also can able to make some good money management to decrease the risk level.

[Zentrader]

I do not understand from where this forex being risky comes.
I think ppl do not understand the basics of finance.

Leverage is risky not forex or trading.

Every investment with high leverage is risky.It can be gold/silver,real estate,cattle,house or trading.
Basics of leverage is how much money you put upfront and how much money you borrow to make an investment.

Say,you want buy a flat in Mumbai worth 2 Cr as an investment hoping the rate will go up to 6Cr in 3 years.But you have only 50 Lakhs money with you.So,you talk to a Banker friend who will lend you rest of 1.5Cr in return of modest return of 10%(just assume).
Suppose after end of the 3 yrs you are right and property is worth 6 crores. Out of the 4 crore profit you will pay back 2 Cr( 1.5cr principal and 0.5 Cr interest) and keep the rest of 2 Crore with you.

So,you invested 50 lakh and got 2.5Cr.

In the other case say property price comes down by 20 Lakhs due to economic slow down. But,you have to pay the loan back to the bank anyway after 3 years.
After paying interest of 0.5 Cr interest + loan 1.5 Cr,you are left with 1.8Cr-1.5Cr-0.5= -20 Lakh

Net 70 lakh loss.


Remove the interest component and apply the same to forex or any kind of option/futures trading with leverage.(Actually there is interest component in forex called SWAP)

Leverage magnifies gain/loss.
Forex,Futures,commodity even stocks options (Call/put) have high leverage has same degree of risk.
Forex is not different from any other kinds of investment as such.

Only thing is forex brokers allow kids to play(over leverage) with 10$ which others might not allow

http://en.wikipedia.org/wiki/Leverage_%28finance%29

http://www.investopedia.com/terms/l/leverage.asp
to invest with you.You deal with bank says

[s19]

main sochta hu ki forex market uske liye riski hai jo esme new hai...

forex bahut achaa or jyada returns deta hai...esliye aaj kal forex trader bad rahe hai..
forex me aane se pahel esko smjhna or sikhna bahut jaruri hai...

[anubhavsingh]

Forex market is risky for those traders who do not follow forex basics and keep on trading..
Traders should follow proper technical as well as fundamental techniques before entering in this market..Apart from this, its always advisable to take guidance from experienced traders..If you follow these points, you will manage to earn good from this market

[Victoryindia]

yeah i fully agree with this that forex is risky then also ppls does forex trading may be greed or something but the real reason is that returns in forex is more in it then other tradings

well saurab i m 100% agree with you that the return of investment is too high in forex trading then any other online trading firm with less amount of investment so ppl can afford less amount for starting forex trading

[saurabh]

yeah i fully agree with this that forex is risky then also ppls does forex trading may be greed or something but the real reason is that returns in forex is more in it then other tradings

[Anytime]

Everyone always says that forex is risky. Is it that risky? If it is, why are we still out here trading in this risky market. What you think about this?