Reason 7: Plenty of forex scams and fraud. Reason 8: Forex provider risks (counterparty risk) Reason 9: 24-hour markets. Reason 10: Systematic/algorithmic trading requires a lot of work. Reason 11: forex market attracts gamblers. Reason 12: Almost nothing is backtested. Reasons why you should avoid forex trading - conclusion.
Most brokers calculate leverage using a ratio of dollars in your account versus dollars you can trade with. For example, the most commonly-used leverage ratio in forex is 1:100.
Undoubtably the failure rate of traders is high- but is it truly 90%+? I lost money at three different brokerages over two years- blowing accounts at two. Before finally opening an account at a direct access brokerage when I became successful in year 3. Was I counted as a losing trader 3 times in these statistical models? This is why most forex traders lose money and quit in the early months of their trading. It takes about 3 to 5 years for anyone to graduate with any professional course which more often than not forms the basis of one's lifetime career. For instance, statistics have it that only 1% of the labor force in Kenya earns Ksh.100,000 and above per 8) Not adapting to changing market conditions. One size does not fit all, especially when it comes to forex trading. Assuming that your one trusted strategy will be equally as successful for all trades will end up costing you money. The good news is that forex market volatility can present not only new risks but also new trading opportunities.Samantha Silberstein The forex market is the largest financial market in the world, with more than $5 trillion traded on average every day. However, while there are many forex investors, fewNnaeS.