Risks in FOREX, and because it is not for everyone

It has been explained that Forex has many benefits, but also involves risks. Get to know them before you put your money in.

Leverage

The main risk of forex is leverage . Leverage multiplies my profits, but if the market goes in the opposite direction to where I think (which will happen very frequently), my losses will also multiply. In fact, there are so many people who lose their investment. Forex is very risky, and to lower the risk there are two options:

1. He must have MUCH experience in technical investment analysis to operate it leveraged or
2. I must operate on my own resources without leverage. So you should have about $ 10,000 and be willing to invest them. Even so, you run the risk of losing money if you do not have experience.

Forex is an unregulated market

Being a global forex market, which operates around the clock, worldwide, no one regulates it. It is not monitored by the CNBV in Mexico, nor by the SEC in the United States, nor by any regulator in the world, and therefore nobody protects you. This lack of supervision has allowed many frauds. Find a broker that is recognized, informs you, that they give you references.

Your Forex Savings?

How much do you have saved? Remember that forex is high risk, so it is not good for you to invest all your savings? What percentage would you invest? Would you tolerate losing that money?

Other half-truths.

Forex ads have half-truths, and therefore, they are misleading. Here are some clarifications:

Forex operates all day, so you can make money in any free time.

Forex if it allows you to trade at any time, but that does not mean that you can have a profit right now. To win in forex you have to look carefully at the graph to find the timing and price of entry, and that is not always going to be in your free time. If you want to make money in the forex, you need to spend time, not just free time.

Forex is the simplest, most effective and quick way to improve my income.

If it were so simple, everyone would be making money with the forex. Remember that in these markets, in order for someone to win, another needs to lose, and usually lose the inexperienced who seek fast and easy profits. It is necessary to master techniques, and for this it takes time, practice, falling and getting up.

Over time, practice and experience, FOREX is one more door to generate income.

Every time I have time, I go into FOREX and invest wisely

Of course intelligence is required. Intellectual intelligence and your analytical and observational skills will help you find patterns to buy and sell in a timely manner and generate profits.

But another type of intelligence is also important: Emotional intelligence.

Fear of losing and ambition can play against you. You must be able to control your feelings and have patience to wait for the right moments. If you do not have emotional intelligence, forex is not for you.

Hopefully these explanations will broaden the landscape of forex investments.