Most of those with financial surpluses would like to invest them profitably. Why our savings should lie in the proverbial sock or on an interest-free bank account, if after some time they can be multiplied. Unfortunately, most people do not have much idea about investments , so they do not know what to do to increase their savings. Therefore, the search for tips on what to do to increase your property is started online. Surely, people looking for such information will notice that a lot of people advise investment in the currency, preferably on the FOREX market. Thanks to this, you can multiply your money “multiply”, of course, provided that we made the right choices. Therefore, many people decide to try their luck on currency trading . And with what effects? About this in a moment.
What is FOREX?
At the beginning, let’s say what FOREX is. Simply put, it is a global exchange on which you can trade currencies. You can buy, sell in any currency pairs of your choice and what is important at any time of the day or night. FOREX functions because 24 hours a day, from Monday to Friday.
What to do to be able to trade in the FOREX market?
Anyone who wants to start currency trading should first of all get the most out of this topic. We should read about currency trading books, whether publications on the Internet, read Internet forums related to this topic, etc. A great solution for every beginner is opening a Demo account, where we start trading with virtual money. Thanks to this, we can get to know all kinds of rules that govern this world, and we do not risk any of our resources. If we decide that FOREX is a suitable place for us to earn, we must set up an account with one of the brokers, deposit money into it and we can start trading.
What are the risks of the FOREX market?
Internet advertisements tell us that by trading currencies on the FOREX market, we can earn very large sums of money. Unfortunately, the same ads say nothing that money can also be lost. And as various types of research show, the vast majority of people invested loses money. Why? There are several reasons. First of all, to earn, we have to buy currencies when they are cheap, and sell when their price increases. Unfortunately, we have no idea what the value of our currencies will be in a few minutes from the moment of purchase. What’s more, it is extremely difficult to predict how individual currencies will behave, because it depends on many factors that we have absolutely no influence on. It is after all about currencies from around the world, so global valuation is also taken into account.
Another risk for traders on FOREX are brokers . If their clients earn, they lose. It so happens that a person who has a good run, suddenly there is a “technical failure” and all profits are lost. This is especially the case for less known brokers. There were also cases that the broker suddenly and unexpectedly ended his activity and therefore all the money paid in was lost.
The speculators are also a big threat for traders on the FOREX market. They have huge cash resources, which means they can control exchange rates in a certain way. Of course, this is not a permanent activity, however, many people may lead to financial ruin.
Is FOREX for everyone?
Despite all the threats that lurk before the participants of the FOREX market, new players are still joining the “fun”. Unfortunately, as statistics show, about 90% of them will lose their money. Therefore, before someone starts trading currencies, he must think about it very well. The risk is huge, but of course, and possible profits can be considerable. Certainly the currencies should not be traded by a person with weak nerves, because everything on FOREX changes rapidly and once we can gain, that after a few minutes a loss appears on our account. Therefore, not everyone can experience such a mood swing.
Trading on FOREX requires knowledge, time and, above all, happiness. You can earn a lot here, but you can also lose everything. The choice of whether the game is “worth the candle” must take each one of us individually.