How to play the Forex market - forex as gambling

How to play the Forex market?

The truth is that the Forex market can generate considerable profits, it can even be a source of stable income, but only in the case of real, professional trading. Unfortunately, the vast majority of investors are focused on quick and easy profits, and their decisions are not much different from those taken at the casino.

Forex: worst case scenario possible

If we are talking about naive investors who believe that it is possible to make a dark investment, then unfortunately we can talk immediately about the losses they will incur. Such an investor is not able to perform a technical or fundamental analysis, so he cannot make informed investment decisions. So his decisions can be compared to empty shots in the dark. If someone wants to base their decisions on something like this and put all the savings on the basis of their feelings, it is his business.

What is worse, however, when we lose, then we invest (usually already borrowed money) in order to bounce back and make up for losses, then on a good wave we can not stop and in emotions we do not see the moment when we better finish the investment, which ends up with bankruptcy and loss of exactly everything that we have invested. The worst thing is if we are helped by financial leverage. Ignorance of market rules can be very dangerous when we use the financial leverage (or financial leverage).

Forex: financial leverage not for laymen

In the United States, it is more than 90% lossmaking. These numbers alone should appeal to investors more than myths of quick and easy profit. Unfortunately, many people don't want to see the obvious - that there's nothing for free and in order to gain money on Forex, you also need to put a lot of work into it. Playing on Forex will sum up your savings, e. g. 10,000 USD, when the leverage will help us, it can already be one million USD. It is therefore easy to estimate the size of the risk.

Forex: technical analysis or analysis fundamental key to success

The work that observers of the famous Forex success stories don't seem to see, when traders earned amazing assets in a few seconds, is a real and hard work. Yes, if you only look at a few minutes or seconds perspective and a huge profit, then it seems like you can compare it to a lottery win.

However, this is not the case. Because in order to develop a given, profitable investment strategy, one needs to work a lot in advance: learn to understand a lot of data, language, concepts, rules, as well as to perform technical and fundamental analysis.

Moreover, it is not easy and time-consuming to carry out any analysis, draw conclusions from it and develop a detailed strategy. There are those who treat it as a hobby, but the "layman" investor should be aware that it is not enough to put his money into a position to call himself a trader, it is far too little. However, among those who invest in their investment education there are many more winners, as more than 25%, and this is encouraging in their own strength.