The Rollercoaster Ride of Forex Trading

Filed under: Learn Forex Trading |

If you don’t like rollercoasters, then you probably will not take to forex trading. It is full of ups and downs, both with regards to emotions, and your trading capital (which likely have a significant correlation as the two are inextricably intertwined). If you are looking for a nice, safe investment that has a gradual rise for your capital, then you are probably looking in the wrong place. Go for a nice safe savings account, a bond, or perhaps even a property investment. These, for me, are the safest ways to invest. But if you want to take on a little more risk for a potentially greater reward, then forex trading is a good option. It is certainly as good as a mutual fund or stocks if you learn to do the right things first. However, what you are essentially doing is taking matters into your own hands rather than letting somebody else manage your money for you. The good thing is that you have control of your own money, and you only have yourself to blame if things go wrong.

 

In my opinion, mutual funds are not a great option, and are wildly over-used. The thing with mutual funds is that only the best performers really get any attention, and the ones that fail slip through unnoticed (which are more plentiful than the successful ones). Moreover, the successful ones tend to be successful only for a short amount of time, and are difficult to predict. However, forex is a stable market and if you can learn how to trade it, then over the long term, you might have a much better chance of success. But this is the key – take a long-term approach. You must think of it as a two or three year investment, otherwise, you will likely give up and not even give it a chance.

 

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