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[Professional Writer]

Risk is involved in Forex trading and hence, it is pertinent to understand trading before risking one’s capital although it can be quite lucrative. Volatility is the biggest issue and can create tremendous changes - a new piece of economic or political news, an interest rate change, or an unexpected event can shake the market dramatically. A trader should remember that the above-mentioned increase in the value of currencies resulting from these events can also decrease the value of his account or the other way around within seconds, if he is over-leveraged or uses improper risk management. Speaking of leverage, a lot of brokers let their clients trade with a lot of borrowed money, which may allow them to make big profits while at the same time, it can make them suffer from big losses. In fact, it is said that most new traders do not realize the speed at which they can lose their money covering a loss. Lack of knowledge is another problem as a person not only gain the initial experience but are under the wrong impression initially that this work is so simple to make money, and it caters a lack of necessary skills to a person for the future. Another factor that also plays a major role is one's emotional well-being – many traders often let their greed, fear, and impatience take the best of them and they end up not following their original trading strategy, or worse, continue chasing after their losses. In addition, an organized scheme created by big players may cheat retail traders when they use stop-losses and trigger them to create artificial trading situations. Technical basics, such as software issues or networks breaking down, can also be the cause of you missing trading opportunities or not being able to close one timely. A gray expo of unregulated firms which operate under the radar and are in the business of changing the quotes of the financial instruments and even worse can become a hurdle while attempting to withdraw funds.

 

[kerryjoy]

Forex trading seems like a crazy roller coaster; if you're not careful, you could be up one minute and down the next. People have jumped in believing it's a simple way to make quick money, but the volatility alone has the power to completely ruin your account in a matter of seconds. Use leverage? If you don't handle it properly, it can burn you severely. It's like playing with fire. Furthermore, feelings like fear and greed affect your mind far more than you might think. And let's not even talk about dubious brokers and technical issues—it seems like the market is trying to deceive you. The bottom line is that you must be aware of the game and maintain your composure or else you will fail.

 

[Oluti]

The ability to analyze forex charts, technical indicators and fundamental factors allows traders to analyze the market more accurately and reasonably, especially its medium-term and long-term movements, which increases the chance of earning and its stability, unlike binary options, trading which in most cases comes down to simply guessing the direction of the market movement (especially in short-term trading), which makes them more of a gambling game than real trading.

 

[Professional Writer]

Forex trading is one the riskiest things you can do with your money. Just like any other market forex market is also very volatile. This means that you can win or lose trades at any time. The risk increases even more when you use binary options trading. However, the fact remains that spot trading isn't less risky either. You have to make sure that your stop loss doesn't get hit. This is one of the most important things. Despite all these risk management strategies, the stop loss still gets hit and many people lose money.