Trading in the forex market is not simple. But also, People are attracting towards it without knowledge. Today we will see, Is investing in the forex market risky or not in 2021.
The funny thing is – If you made a thousand dollars per trade on forex in profit, you’d NEVER call that risky. If you lost it, on the other hand, it is DEFINITELY RISKY!
Funny isn’t it how we categorize things that way? Now the fact is, forex trading is not risky. Why? Because a smart trader always ‘de-risks’ adequately before entering a trade. How does he/she do that? Knowledge for one. Self-disciple the other.
Is investing in the forex market risky really?
According to me, Investing in the forex market content risk only when you don’t have knowledge and you are investing or trading in the forex market.
I can say that you will lose your money. Because, If you do trading in the forex without knowledge then you are just doing or playing gambling.
As we all know, In gambling at the end we lose our all capital or money. So, Better is to gain knowledge and then enter the forex market or trading.
According to me, Investing in the forex market is risky for those who enter without knowledge and Those who knowledge they can enjoy the profit journey.
Related article:- what is swap in the forex market?
Why the knowledgeable person lose their money in forex trading?
Many knowledgeable people ask me, Is investing in the forex market risky because I have lost my money in it and have knowledge. So, I decided to research about it, why the knowledge person lose their money in the forex market?. Let’s see
The main think I seen that many people are not following rules, not following risk management rule, not placing stop loss, and many more.
The mindset of forex traders while trading, “I have planed the trade this is a stop loss and this should be my target, taken trade. After taking trade there are two situations“. Let me explain below.
If the trade gone in the positive direction and waiting near to the target then we wait for some time and exit from that trade before archiving the target, and in the opposite situation, If the trade gone in the negative direction then we wait for the stop loss to hit.
However, We should have control on our self. This comes in risk management. So, Better is to manage the risk profile. However, Exit the trade where you planed. Then you can be a successful trader in the forex trading.
Is investing in the forex market not risky in really. However, It is risky for only those people who don’t have knowledge about the forex market.
If you have any questions related to “Is investing in the forex market risky” then you can ask in the comment box below.