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The Easy, The Bad and the Ugly of Forex Trading

Thu Sep 17 2020 12:35
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There is no such complete forex trading guide in the world. Some trading forex guides are telling traders about following market trends and some forex strategies. So there is a separate guide on every aspect of the currencies and trading. But what are we going to tell you in this guide? We will tell you the easy (pleasing), the bad, and the ugly side of the forex market. No, this guide is not to explain the basic tips about how to trade. But we will try to help you know more about the forex trading exchange market. We assume that you know about how the foreign exchange market works. For those who don't know, forex trading is trading currency pairs. There are foreign exchanges in the world, in which anyone can enter with the help of forex brokers and trade currency pairs there. Now let's jump to the next section of the post that explains more about the currency-market. 

The Pleasing Side Of Online Trading 

First of all, let us tell you more about the pleasing side of forex trading in this forex trading. These are the factors that attract new traders towards this online forex trading market. Most of the beginners enter the live trading market just after listening to these easy to do profitable things about forex trading. 

Quick Rich 

Most of the new traders have listened somewhere that they can become quick rich with easy trading strategies. That is the only reason they want to start forex trading. Yes, everyone needs money. There is no forex trading guide in the world which says fx-market is a quick rich scheme. However, some experts earned millions of dollars through one single retail forex trade only. 

Liquidity 

The other reason which states that forex trading is the easiest way to earn money when the market is bullish. But that doesn't mean that you will win all your CFD trading bets. Yes, you will never face any lack of trade forex issues, but it doesn't assure a victory for you as a trader. You will still need to perform fundamental analysis and keep the trade on currency prices.   

24 Hour Market 

People learn how to trade just because they are 24-hour trading systems. People say that they can do it after their regular job through a good trading account. They will earn through this market while trading in their free time. Yes, there is no time limit for the forex traders. But that doesn't mean that traders don't have to do hard efforts like technical analysis. Efforts and knowledge of the market are always required for trading currencies. 

No Fixing:  

There is no supreme power who is controlling the commodity futures trading. So there are no chances of fixing. You may have listened to some market fixings by stock traders. Some traders are called the match-fixers. They can fix the market according to their wish. This fixing makes it hard for small traders to win a trade. But there is no fixing in the global market. 

The Bad Side Of Forex Trading 

Now the second part of this forex trading guide is the bad side of the forex online market. What are some popular bad things about forex trading? Where the experts tell us something bad about forex trading. But is this bad to invest money? We have classified it into four sections. Check these points and also share with some of your friends those who are going to open an account. 

Needs Experience 

It is not the worst thing about forex trading. But it makes forex trading worse than some other financial markets. In binary options trading, there is no experience and deep price action knowledge is required. But when it comes to advanced forex trading. A high level of knowledge and experience is required to start forex trading. 

Restrictions In Some Countries 

Some particular countries are having restrictions on forex trading platforms. Some have imposed a complete ban on forex pairs and trading. So if you belong to any of these countries, you will face issues in trading services. So you cannot defeat the traders from other countries, where a forex trading platform works without any interbank or government restrictions. 

High Risk 

Every financial market is having risks along with it. Not only financial markets but also any kind of business has risks linked to it. Similarly, forex trading has risks in it. Then why are we calling it a high-risk market? It is because of the no control over market fluctuations. The market fluctuates without any estimate. Sometimes market fluctuations go against market predictions, so always define your risk appetite.  

The Ugly Side Of Forex Trading  

Now the last but most important section of this forex trading guide, The ugly side of forex trading. What's ugly about this amazing market? You may ask yourself. But wait, before we explain to you everything about the black side of this market. From scams to frauds we will explain everything. 

Many Scams 

Yes, there are some scams held in the forex exchange trading market. The most popular scam was held in 2007. This scam is known as the black diamond forex scam. Two guys fooled more than two hundred investors and spoiled their forex account capital. The scam by Universal Brokerage Services company was also famous. Investors lost almost $190 million in this forex-trading scam. 

Spam Bots & Indicators 

Also, there are some spambots and indicators available in the market. A forex trader can spot them easily because they always provide you guaranteed success. Bots are a kind of software or program that helps traders to trade automatically. Indicators are some kind of market predictions. Various bots and indicators are available out there in the market. But many spambots and indicators are also there. 

So-Called Experts 

You will find many so-called experts out there in the market. These experts are always telling lies to the traders. They say that forex trading is a very easy business. They will never tell you the reality of the forex market. Do you know what reality is? The reality is, Almost 90% of the traders fail in the market. Only 10% of traders succeed in the market. But experts will sell you their courses, books, memberships, software, or strategies. They will just tell you that you can become rich in these things. 

Addiction Like Gambling 

Yes, this one is also considered as the major part of the ugly side of the forex. Forex can make you an addict. If you win some of your initial trades, you will think that it is very easy for the job. So next time you will invest more. Forex trading triggers emotions in human beings similar to gambling. That is why some experts say that forex is gambling. You can win millions of dollars in a single day and you can lose all of your money in a single trade also. 

Conclusion 

Now, what comes to your mind after reading this complete forex trading guide? Maybe now you have a clear vision of forex trading. Also, there are chances that you are still confused about this market. Because forex trading is having all three sides like good, bad, and ugly. So what is the right opinion about this market? The right opinion is balance. You have to make a balance with this market. If you lose your balance, you will lose your money and it will be a clear ending of your trading career. So it is very important to learn trading with a balanced approach.  
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