Tuesday, June 24, 2014

Start trading forex

Forex market is the largest financial market in the world which operate non-stop for 24 hours a day and 5 days a week. Forex trading activity is mostly done by professionals such as bankers. Forex trading transactions are generally done through a broker, but in reality do not always have to use the services of a broker, everyone is free to trade the currency in its own way. In the forex market buyers and sellers freely traded currency they want, whether it's for business purposes or a long-term investment. But, based on a survey, which dominate the forex market are the large banks that exist throughout the world. They controlled almost 73% of the trading volume that occurs.

Whether the forex has a high risk?
When you trade a currency, you basically are in a business of currency speculation. This means that there are risks inherent in the business of forex as well as on other business. Risk will always be there in any kind of business, the question is whether you are able to manage that risk. Ways to manage risk in forex trading business is through the establishment of the maximum loss if it turns out the movement of the market moves against you predicted. The popular technique is called "stop loss". It will prevent you to suffer greater losses.
Vice versa, if the market moves in the direction that you want, then you can specify the target profit. Meaning that if the profit target has been reached, then your transaction will be closed automatically.

What you need to do before starting forex trading is carefully thought of all the potential benefits and potential risks that might occur. Do not start trading simply because they are attracted by the potential profits alone, but must also think about the risks. Ask yourself, "am I able to bear the risk?". Risk is not to be feared, but should be manageable. Arm yourself with knowledge on how to manage risk properly. After that you can decide to enter the forex trading business.

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