Forex is a form of investing, so much you are probably clear. However, it is also one of the most risky forms of investment that exist. By trading on the Forex market, in theory, you can lose your entire investment in a matter of minutes.
The official risk warning indicates that the use of levers during Forex trading provide this increased risk. Something that is actually correct, but in practice is NOT the biggest threat.
Mandatory risk warning
For several years now, everyone who is dealing with Forex trading on the right or the right is obliged by the government to use a risk warning to point out Forex traders at the risk of investing in Forex.
The reason for this is that more and more people are interested in Forex trading and the number of active traders has increased explosively in recent years. The majority of that group of new traders hardly explores the functioning of the Forex market. That is quite understandable, because the acting itself is childishly simple!
Without proper preparation and background information on how the Forex market works, it will not be possible to grow an investment. With a balance of $ 500 on your trader account, it is entirely possible to make a profit, but with minimal profit margins.
Who expects that $ 500 in a few minutes can be converted to $ 1000, will be disappointed …. though it is theoretically possible! If you want to try something like this, you will have to take a huge risk and the course has to rise (or fall) at the right moment, long enough. In practice, however, it appears that the opposite is happening: one THINKS that a price will rise, takes too great a risk and then loses more than was previously estimated.
Learning to be responsible
The Responsible Forex Trading course was developed to introduce starting traders to the wonderful world of Forex trading. You learn terms, important elements, gain insight into price fluctuations and learn at which times Forex trades can generate the least risk and highest return.
The course is suitable for both traders who are just starting out and traders who are less successful. Our trading course is free. you need an account here at Forexmaldives.com before you can follow the course.