Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,618,952 members, 6,101,714 topics. Date: Saturday, 16 January 2021 at 06:26 AM

The Dangers Of FOREX Trading They Never Told You About - Investment - Nairaland

Nairaland Forum / Nairaland / General / Investment / The Dangers Of FOREX Trading They Never Told You About (1889 Views)

Top 10 Lies That Mavrodians Told Themselves Before MMM Came Crashing Down / SEC Warns Nigerians Of The Dangers Of MMM, Calls It Fraud / Secret Of Forex!!!!forex Alert..forex Traders Stop Dulling...read (2) (3) (4)

(1) (Reply) (Go Down)

The Dangers Of FOREX Trading They Never Told You About by TamaraAbells: 8:39pm On Dec 11, 2015
Most times, when people talk about Forex trading, they only tell you how you'll become a millionaire in one night, they never tell you that you could also become the poorest man on the planet if you are not careful. I'm not trying to frighten or scare you away, i just believe everyone you know the dangers in the trade called FOREX.



How Does FOREX Works?

Before you put your money on the line, you should find out how forex markets and trading works, do extensive research and consider getting professional.
FOREX trading involves you buying a world currency, hold it for a period of time, and hope that it will rise in value. If that happens, you sell it. As easy as that sounds, it can be much more risky than trading with the conventional stock market.

[size=15pt]Things They Will Never Tell You About Forex Trading
[/size]

You Need to Work Really Hard

One of the things they will not tell you about FOREX is that you have to know almost everything. Forex trading is complex and risky. Currency markets are extremely difficult to predict because so many factors affect exchange rates. Even the most skilled and experienced forex traders have difficulty predicting movements in currencies. Trading in international currencies requires a huge amount of knowledge, research and monitoring.

Leveraging Can Wreck You

Leverage involves borrowing a certain amount of the money needed to invest in something. leverage has the potential to enlarge your profits or losses by the same magnitude. The greater the amount of leverage on capital you apply, the higher the risk that you will assume. A highly leveraged trade can quickly deplete your trading account if it goes against you, as you will rack up greater losses due to bigger lot sizes.

The Brokerages Dont' Really Care

You will have to pay fees for any profits that you incur, as well as trading fees and commissions. The brokerages make money even when you lose money, so its not their problem when you loose, they really don't care about your well being, either way, its win-win for them.

Exchange Rates are Never Stable

There are significant investment risks as currency fluctuations may move against you, causing you to lose money. Exchange rates are very volatile - they tend to move around a lot even within very short periods of time.

You're on Your Own

Forex trading raises the stakes further by letting you trade with borrowed money (leverage), but you'll be responsible for all losses, which may exceed your initial investment. Margin forex trading is one of the riskiest investments you can make.

You'll Have to Study the World

To successfully trade in forex, you will need to have good knowledge of foreign exchange, leverage, volatility and the conditions of each country whose currency you are trading.
You will also need to predict how these conditions affect the relative value of those currencies. This is extremely difficult as so many factors come into play, including politics, economics and market confidence, and these are unexpected, random events.

Resources: http://africhow.com/money/

2 Likes

Re: The Dangers Of FOREX Trading They Never Told You About by Nobody: 8:41pm On Dec 11, 2015
Last Days
Re: The Dangers Of FOREX Trading They Never Told You About by Ben1975(m): 9:55pm On Dec 11, 2015
Good post for newbies- I did Forex trading for years even traded pro PAMM accounts for a very popular brokerage firm until i discovered they were "helping themselves" to my money and denied it. Haven't traded since.

I do more reliable online business now.

1 Like

Re: The Dangers Of FOREX Trading They Never Told You About by fxstory(m): 10:05pm On Dec 11, 2015
mmm
Re: The Dangers Of FOREX Trading They Never Told You About by Smartlife(m): 11:56pm On Dec 11, 2015
You just wrote what your brain gave you... Meanwhile some guy out there are busy making good money with forex and don't care about looking for jobs. This business pays good that is if you can research, practice, avoid greed and be patient...
Re: The Dangers Of FOREX Trading They Never Told You About by aydotaone(m): 12:23am On Dec 12, 2015
Nice writeup
However, let me tell you that most (though not all) of the information you need is already summarized on the chart and that is why Price Action rules the game. I tell you, I have some young millionaire friends in the Forex business who wiill NEVER take even an oil company job.
Forex is a business and must be taking as a business. It is not a get rich quick scheme and with proper education coupled with money management together with greed control, you will surely make more money in Forex business than u think.

FOREX is real and legitimate business but not for lazy ones.
I'm proud to be a Forex trader
Re: The Dangers Of FOREX Trading They Never Told You About by TamaraAbells: 9:24am On Dec 12, 2015
Smartlife:
You just wrote what your brain gave you... Meanwhile some guy out there are busy making good money with forex and don't care about looking for jobs. This business pays good that is if you can research, practice, avoid greed and be patient...

I'm not saying the business does't pay, just saying that some people make it seem like you'll become a millionaire overnight, they make it seem like its win-win all the way and that there is no loss

1 Like

Re: The Dangers Of FOREX Trading They Never Told You About by TamaraAbells: 9:26am On Dec 12, 2015
aydotaone:
Nice writeup
However, let me tell you that most (though not all) of the information you need is already summarized on the chart and that is why Price Action rules the game. I tell you, I have some young millionaire friends in the Forex business who wiill NEVER take even an oil company job.
Forex is a business and must be taking as a business. It is not a get rich quick scheme and with proper education coupled with money management together with greed control, you will surely make more money in Forex business than u think.

FOREX is real and legitimate business but not for lazy ones.
I'm proud to be a Forex trader

yea its real and i just started too, but the brokerage that introduced it to me only spoke more about the good sides. what i'm trying to say is, if you're going to do a business, it is ideal you know both the good and the bad side to it.

1 Like

Re: The Dangers Of FOREX Trading They Never Told You About by Ben1975(m): 3:01pm On Dec 12, 2015
TamaraAbells:


yea its real and i just started too, but the brokerage that introduced it to me only spoke more about the good sides. what i'm trying to say is, if you're going to do a business, it is ideal you know both the good and the bad side to it.

Too many newbies start FX looking at the rosy aspects of it as if you can start making money just like that.

That's not true you need to learn and practice. investing in an Forex ed and even mentoring can help drastically improve your learning curve

But the problem is Forex is not an exact science

Before you can be consistently profitable you will loose money fact. How much you loose depends on your training. I was able to double my account within 15 days consistently it didn't happen always and it took while before I reached that point.

I mentioned that I grew money trading professional PAMM accounts. Nobody can tell me that you cannot make money from Forex. but to think that you can be consistently profitable when you start is a lunacy

1 Like

Re: The Dangers Of FOREX Trading They Never Told You About by Ben1975(m): 3:12pm On Dec 12, 2015
For newbies who are genuinely serious about making money in Forex but may not have money for expensive courses here is something

This is a free site I used. You can use this free site to learn how to trade before you have money to invest in Forex education. But here is the key. Dont even think about trading till you have completed this course and understood it or all you will do is give your money to the market and the brokerage firm as an early christmas present and end up being part of the 95% who never make money doing FX.

This course is as robust as you can get anywhere on the net without paying money

Here is the link: BBpips.com - School of Forex Trading

Sincerely

Ben Ajose

2 Likes

(1) (Reply)

We Install High Secure CCTV Surveillance Solution 4government & Law Enforcement / Anyone With Information About Cashcraft Asset Management Limited? / Business Partners Wanted

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2021 Oluwaseun Osewa. All rights reserved. See How To Advertise. 83
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.