Forex pros and cons.
trading on the Forex currency market falls into this category
What lies behind the apparent simplicity of trading, and how realistic is it to earn money in this field? The first question that concerns a beginner is whether Forex is another pyramid scheme designed to siphon money from the population, and how realistic is it for a beginning trader to earn money there?
1. Forex is not a pyramid scheme. First, it should be noted that the exchange itself has been around for about 50 years, and trading is conducted not only by domestic dealing centers , but also by large banks in countries such as Switzerland, Germany, Austria, and elsewhere. The only difference is the initial client deposit requirements: while our dealing centers allow you to start trading with just a few dollars, European banks prefer large clients with deposits of $10,000 or more.
2. The potential for a beginner to earn money is close to zero, due to the fact that most beginners simply ignore the basic rules of forex trading . Typically, the first earnings appear after a few months of trading.
3. The opportunity to make money quickly – the earnings range is simply enormous; professionals earn from 5% per month to 500% per day. The size of the earnings directly depends on the trading strategy and the trader's professional skills.
4. The main dangers in forex trading are high leverage and the lack of stops. For example, most bank brokers limit the maximum leverage to 1:50, thereby protecting their clients from excessive risk.
5. Non-market risks – in forex trading, non-market risks include the intermediaries through which trading is conducted; not all of them inspire confidence, and some even work against their clients. Only large forex brokers .
Like any job, Forex trading has its pros and cons. The pros include online work, high earnings, and excellent prospects. The cons are also familiar: high risk and the possibility of fraud from DCs. There's no doubt that trading is all about you – choosing the right DC and how you structure your trading process. Only the greediest and most careless lose on the exchange.
