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

[dewik79]

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?

If we analogize forex with the banking business, the bank also has a big risk, such as bad credit refund. But until now the bank still prevail, and many new banks that have sprung up amid the higher the risk. In forex, just good management that will save us from the threat of risk. That's why I want to continue to survive in the forex, because I was trying to act according to a predetermined management.

[10pips]

i know that forex is also too risky to make the trading in here, but i have think that this business is not jus thave the risk inside here only, but thtat is also have the profit that i can got inside the forex businesss too so i think that is not the big problem

[The Queen]

got rich from forex trading is very not easy but is big posibble trader can got rich in forex trading if trader can succes produce consistent profit and have many rich investor, and to can success make profit consistent in forex trading is must have long experience trading.

[evaheima]

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

if there is no risk then no chance of getting more money than what we invested. But here, if we start learning things trding then it will be easy and we may also be able to make a good money management to reduce the level of risk.

[noery]

Risk of loss / failure is the worst thing and the people who managed only one who dared to challenge it by way of understanding and mitigating risks is as small as possible, as well as forex, is very risky at all.
For me the forex business is a complex one because it helps me to learn in business management. Business will be ruined if bad management as well as in the forex, it requires good management in terms of emotional, financial, and time (discipline)

[e001]

i know that this trading has risky without this risky traders can not become success from this trading so traders should learn this trading very much and carefully.

[truegoa]

i know fore is very much risky, but still i am kind of addicted towards it. i know it is bad, and may be i will get psycho after a few days, but the thought of making so much money drives me to open the chart

lol , buddy,
Thats really bad to get something like that in your feeling. No need to be too exciting about anything here since that feeling will drive us to our bad trading. With that such feeling, you will just take any opportunity without good confirmation, means you will trade sporadically, and that will be very bad for us.

[100 to 1,000]

Trading itself is a risky affair and Forex is no exception than that. But still it attracts us because of the huge amount of profit which can be made. I at least do trading because i somewhere believe that if loose x amount money also, i'll be able to make (x*x) amount of money i really want to. So knowing the fact also that it is a risky thing to do, still i prefer to carry on with it.

i think many people on this forum and outside of this forum who are trading forex including me understand that forex
trading is a risky business. but we all have expectations to make money from this huge market and that is why we are still trading.

[hashmi khan]

ya forex is risky but if we want to get profit in any business then its compulsory to face risk because if you have guts then you make your future here and get benefits in less time.forex is a huge business now.

[saim.asghar]

mara khayal sa forex asan business be hai or mushkil business be hai per agr ap is ma acha kam kara ga or rule and dscipline sa kam kara ga to ya sub sa zada asan business ho ga.