Many people believes that forex trading is an easy and profitable small business. But it's also a risky business too. Is it true?
More risk, more profit...
Many people believes that forex trading is an easy and profitable small business. But it's also a risky business too. Is it true?
More risk, more profit...
This is quite true. If you do not know the expectancy mathematics, or should I say arithmetic, of your egy then there's a danger you may believe that you're a poor trader if you have a string of losses, or what is worse, unintentionally do nicely.
In other words, it is not all that difficult to understand about risk management but it may be difficult plogically to apply it consistently.
More risk = greater profit
more risk = greater loss
not only profit with greater risk...
Foreign Exchange is elevated risk. In the event you do not know a lot about Foreign Exchange and you want to play with then you are a gambler. Better keep practice together with demo account to understand comfortable and appropriate technique before you play the true Foreign Exchange
Yes, it is a really risky business if you don't know what you do.
Just as you wouldn't do brain surgery on someone, after studying 1-3 novels, you shouldn't trade after studying 1-3 books.
Who' s what people don't know. To be world-class (an in this sport world means earning more than 15-20percent PER YEAR!!!) You need to spend the hours and years. Thousand and thousand of hours !
But hey, that would like to put in thousand and million? Everybody want to make money fast and easy
Two things that you want to study before you start trading are drawdown and expectancy. Look at risk from this point of view and you may stand a opportunity. If you don't you might as well go to a casino.
Yup! More risk you're willing to take some, you can make some great money. The trick, however is in converting these trades to real profit.
The hallmark of superior trading is trying to find the maximum profit out of the smallest amount of risk possible.