A few months ago, I had a guest post on my site about trading the forex market , and I had a comment requesting how I should talk about the dangers of forex investing. So because I am responsive albeit slowly responsive, sorry! Forex stands for Foreign Currency Exchange.

When or if that happens, you sell it. It sounds quite similar to buying and selling equities.

is forex trading dangerous - Make money from home - Speed Wealthy

Except that it can be much more risky than trading with the conventional stock market. Here are some qualities of the Forex market that makes it dangerous. Also, I hear that they have Forex Robots that use algorithms to make the currency trades automatically, which might help take the panicky psychology behind currency trades, and help limit your losses. Readers, have you invested or traded with the Forex Market?

What are you thoughts on it?

Benefits and Risks of Trading Forex

Zero-sum markets are definitely a bad deal. Another note on Forex, the currency market cycle is so long so you could be in the negatives for a long time.

This is no buy and hold type of investing unless you have nerves and deep pockets to trade off longer time frames. Mark- Thanks for visiting.

Beating The Index- Interesting you both have different view points on whether forex is buy and hold or quick trading. Stocks all the way baby! This definitely sounds risky. Little House- Yeah, and who really can be on top of the world news? No one knows when things will happen unless you are a spy, of course lol. Andrew Money Crashers- I know eh? Things are going on politically around the world every nanosecond. Forex can be a great opportunity or a desaster experience. There is a lot of money to be made on Forex.

It needs understanding and lots of practice. Anything that is worthwhile takes lots of time. People blame forex for losing their money, in the meantime they have only themselves to blame.

Is Currency Trading Worth the Risk? - WSJ

If you do that you need to lose 30 times in a row to blow all your money. Using a proper strategy that is just about impossible! Thanks for this article is very good article.

I have a great advantage. I think that would be useful to many people. Wishing the author has lucky and happy. This is a good, common sense article. Very helpful to one who is just finding the resouces about this part. It will certainly help educate me.. Do you ever run into any web browser compatibility issues? A handful of my blog readers have complained about my site not working correctly in Explorer but looks great in Chrome.

Do you have any advice to help fix this problem? This logic is the financial analogy of doubling up your bets at craps — each time you lose you bet double on the next bet. Funny how much the casinos just love people who play this strategy. Your email address will not be published. Notify me of followup comments via e-mail. Top Shelf Web Solutions. Start Here About Us Media Contact Us Binge Read Latest Posts Categories Investing Made Easy What Are RRSPs, TFSAs, and RESPs Anyway?

The Dangers of Forex Investing by Young Investing 16 comments. Qualities of the Forex market that make it dangerous for your wallet: Mark on September 27, at I do have exposure to other currencies though through non-currency hedging index funds.

BeatingTheIndex on September 27, at 2: A lot of the brokers out there are market makers who will take the other side of your trade. I prefer stocks anytime over FX. Little House on September 28, at 6: Invest It Wisely on September 30, at 7: Invest it Wisely- LOL! You had me fooled for a minute there, my eyes were widened like saucers. Andrew Money Crashers on October 10, at 4: Randy Rodenhouse on October 29, at 7: Henk on July 30, at 7: Oakley Black Friday on November 7, at 6: Sonic TV on November 10, at 8: Oticon on April 17, at 8: Rube Vogel on October 30, at Submit a Comment Cancel reply Your email address will not be published.

Facebook Twitter RSS Top Shelf Web Solutions.