Why do people invest in forex?
Question by : Why do people invest in forex?
I have heard that most of the people who invest in forex lose their money. So why do people continue to invest in forex? It seems that this speculative investment is very risky.
Best answer:
Answer by Blue FX
People still invest in forex simply because they know the math of earning money with little capital. Adn aside from this, forex offers a lot of advantages over other investment options available out there.
1) The forex market is close to being the perfect market where close to 4 trillion dollars echange hands every single trading day. It would be very hard for any individual to control where the market is going.
2) It’s a very convenient for of investment. You can do everything – from the opening of the account, to funding it, to the actual trading, and even the withdrawing of money from the account – right from your own bedroom, with just a PC with internet access.
3) Forex allows leverage where your investment allows you to control money valued at 100 times your equity.
4) Forex robots are available to help forex trader trade automatically. These can be found by just doing a search in the internet and by browsing through the different forex forums.
5) When the forex market opens on Monday morning in Sydney, it does not close until the end of the trading day in Newy York, Friday afternoon. It’s a non-stop market where opportunities never run out.
6) Short-selling is allowed in forex trading.
7.) Unlike in stock market where you have to monitor numerous companies, and study their financial statements, forex allow an investor to concentrate on even just a single currency to master and monitor.
Give your answer to this question below!
Most people invest in Forex because they see it as easy….. and they’re going to be one of the few that “makes it”.
Few realize that the small minority that makes money in Forex work very hard and can take years to perfect their skill.
The way BlueFX lists the reasons to be in it….. are irrelevant to the quick pace & need of extreme skills in Trading Money Management.
24 hour availability… misses the point that during slow periods…. the volatility can be a killer.
Forex Robots only work for the already successful trader that’s been doing this for many years. It’s ridiculous to think everyone can easily become rich using them.
Saying short selling is available in FX…. misses the whole point…it’s not really short selling. You’re just favoring the other side of the currency pair…. it’s the opposite trade. It’s not shorting.
I’d go after the other points…but I simply don’t have the time.
It just depends on what you know about the market and/or what EA you have.
All investment are risky if you don’t know how.
It is about understanding and mastering it that makes you the top 10%. Even mutual funds are risky. I would say they are more risky than forex. What do you think? Its about the know and the how.
Forex is not difficult if you understand price action and strategies to apply into play. Money management and trading psychology is the key to success.
Ezekiel
hiya
people invest in forex market because there is high probability of winning and the same time the chance of losing is also high, but many investors, irrespective of this invest in forex trading, because the investment is quite less when compared with other investments.
Trading currencies is one of the best investments I could suggest after investing in commodities like gold
People have different appetite for risk.Some people keep there money under the bed, some in banks, some in government bonds ,some in stock and property.All have different level of risk. Forex would be riskier to the degree you have to know what you are doing but the rewards can be huge if done properly.If you dont know what you are doing you will lose money. You just need a use a strategy.There are lots of resources where you can learn how to trade properly for free.
Trading in financial markets is obviously not a risk free activity and there is a great potential to lose money if you don’t know what you’re doing.
With that said, trading on the foreign exchange market offers you the means to make major profits with a relatively small investment.
The trick to succeeding in forex trading is knowledge and research. If you prepare yourself by reading and researching on the currency cross you want to trade, you can enter the market prepared. There are a number of free resources on the internet that explain the correlations between economic indicators, breaking news and currency reactions. For instance, the link between the U.S. nonfarm payrolls employment report and how EUR/USD or USD/JPY will react.
The people who lose money in the forex market, haven’t prepared themselves first; if you spend time learning about the currency cross you want to trade, you stand every chance of succeeding.
The answer is very simple. People invest for the potential gains on offer but very few have the ability to make these gains.
Over confidence and misguided self belief tend to be the root cause of failure.