Many consider Forex trading is a very risky business. Why is that? actually Forex trading and stock trading having the same principle. Buying and selling activities.
The problem with forex trading though is the high liquidity of the market. basically, the whole world is involved in currency exchange causing the market to move very fast. So you are wrong, you will loose money; fast. And if you’re right, you make money; fast.
If there are any economic event, the market move rapidly.
I also did try forex market, and as of now I’m still in the game. I’ve lost few hundreds dollar in the process. And its really frustrating especially when you lost money. So one should be able to handle stress more than anybody do in trading forex or other financial product.
I’ve made quite some money this month and also lost quite some money. so at the end of last week, I was back to where i started, because winning and loosing are equal. hopefully next month will be a very positive month.
Forex market is very cruel. it can rip you apart in a matter of second, it also makes you millionaire in a matter of seconds. so to be in the market, best that we manage our risk, knows when to enter or to get out. I was loosing money because i waited too long. I was suppose to get out of my position but because i was too confident, it causes me to loose money.
I also had a sleepless night. Its really frustrating knowing you are in loosing position. It also frustrating knowing you are in winning position but have not hit your target yet.
But I think if we know how to manage risk, trading should not be a hard as we think and not frustrating.
but of course, if we loose money, it will hurt us.
so if interested to trade, just open demo account first. Try opening few position get the feel of it. when you are confident, open a small account just to have a feel on trading a real money. Only then you know the feeling when you are in the game.