Is Forex trading risky?
A hard stop is when you set your stop loss at a certain level as you initiate your trade. A mental stop is when you set a limit to how much pressure or drawdown you will take for the trade.
I agree that trading Forex is risky. That might actually be enticing to some people and compelling to others.
Some may say "you can't lose more than you risk." That may or may not be true but there is always room for improvement and Forex is there, outstanding with all the other options for business and associated risks, proportionally.
I think Forex trading is risky for the newbei but if a trader knows the rule of risk management and know the technical and fundamental analysis then it will not be a risky business for that trader. So I think we neeed to know the forex trading education first then need to trade in real accounts.
it is risky if you use the wrong strategies
yes, it is. Proper risk management can become an answer, however even this way you can have some major problems. If your strategy is not well developed, you might still loose all the money, it will only takes you longer to do so. My advise is to learn before doing.
Originally posted by kjamal1984Is forex trading risky?
Yes, Forex trading, just like other businesses, is risky. Risk is actually the first thing that a trader should conquer in order to succeeed. Proper knowledge and information about risk management and a concret trading plan will be very helpful in this aspect. It is difficult to apply in real scenario but one must learn it in order not to lose the money invested.
Yes,risk is always associated with forex trading.It is just a matter on how you control risk.So,buttomline is that having a deep understanding/knowledge about forex is very crucial.
So does it mean that risk management is associated with "discipline"?
Originally posted by evaomarjRisk management is one of the most key concepts to surviving as a forex trader. It is an easy concept to grasp for traders, but more difficult to actually apply
I agree with you,i think discipline is related with risk management.