In today forex faq, we have a question from a new trader asking the following question.
Is it risky to trade forex? and can anyone earn a living from trading forex, I am new to the market and need to know how risky the market is. many thanks
The first impression that I often get from my friends when I tell them that I trade forex for a living is “Isn’t It Risky”. I often reply them by asking them whether it is risky to drive a car? Driving a car is not risky but if you do not have a license and you attempt to drive one, it is very risky.
It is the same for forex trading. If you know how to trade forex and have spend enough time to learn it, it is not risky. However if you think that forex trading is as simple as just buying and selling, I must say that it is very risky for you.
Personally, trading forex is not risky because we have the option of stop loss which will help to limit our loss per trade. Therefore I often urge traders to place a stop loss immediately after entering their trading position.
As for whether anyone can earn a living from trading, I will tell you DEFINITELY YES. I myself is trading forex for a living and I have friends who have quit their day job to trade forex full time.
However I must say that it is not as easy as what most of you think. It took me close to a whole to eventually make money from trading and it took some of my friends close to 2 years to make money. The key is perseverence as it needs a lot of time and effort to learn how to trade effectively.
If you are thinking of making money from trading, you definitely need to spend some time to go through a good forex course that will give you an effective trading strategy to trade with. Next you need to spend time to practice the strategy until you are good at executing it.
Overall, my personal opinion is trading forex is never risky as long as you are well prepared. What do you guys think? Do give your comment below.