- This topic has 2 replies, 2 voices, and was last updated 1 year, 6 months ago by .
Viewing 2 reply threads
Viewing 2 reply threads
- You must be logged in to reply to this topic.
The Forex market is in itself not that risky. The way you invest is what makes it risky. Movement in currency is usually not volatile and dramatic. A country’s currency does not often suddenly drop 5% overnight as stocks can. There are usually warning signals and economic news, as well as other economic factors. If you go to a bank and buy a EUR 1,000 and leave it your drawer, its value will not change much overnight it certainly won’t vanish. A 1% move in the currency against you means you will lose EUR 10.
Forex becomes risky when using excessive leverage. If you open up a forex account and buy the same EUR 1,000 using leverage, you can now buy 1:100 meaning EUR 100,000, then a 1 % move against you will wipe you out your deposit.
1:100 leverage you lose EUR 1,000 – your whole deposit
1:50 leverage you lose EUR 500- half of your deposit
1:25 leverage you lose /EUR 250 – a quarter of your deposit
Sure, the reverse is also true; you could make that amount. The thing is most people get greedy and use too much leverage to have a few bad trades and then start losing everything.
Money Management and discipline is Key
Thanks for the tips. I’m still fresh to all of this, but it’s nice to have little guides like this to help. Thanks for sharing! 🙂
Never invested in the forex market before. But I have been interested in learning more about it. Plus, being able to exchange for other currency would be helpful whenever I plan to travel more.
Side Gigster has three goals.
1) We publish content that can help you learn about the necessary steps involved in building and growing a small business.
2) We post business opportunities and introduce other small established small businesses that can provide opportunities for you. Some of the opportunities for you to work on or places where you can get work done such as building a website or hiring someone to write up some sales copy, or deisgn a landing page.
3) we created a community where people. freelancers can create content and hang out their sor sake sign. A membership site where people can freely interact and use each others services.
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 |
8 | 9 | 10 | 11 | 12 | 13 | 14 |
15 | 16 | 17 | 18 | 19 | 20 | 21 |
22 | 23 | 24 | 25 | 26 | 27 | 28 |
29 | 30 | 31 |