Forex Trading - the Advantages are Also Huge Disadvantages

By: Sacha Tarkovsky

I read a lot about the advantages of forex trading, but these advantages mean nothing if you can't trade correctly, you will be one of the 90% of traders who lose their equity quickly.

Many articles just focus on the advantages (written mostly by people who have never traded in their lives) here we will also look at the disadvantages and how to avoid losing your equity and entering the minority of winners.

Here are two key advantages that most traders can't handle in forex trading.

1. Leverage

This is the one characteristic that makes forex trading so appealing trading more money than you have in your account.

It's of course a double edged sword and creates risk.

The bulk of traders fail at forex trading because they over leverage their positions

2. Volatility

Creates high rewards and high risk.

When you are trading on leverage you have the problem of entering at the right time, running the trend and knowing when to stop yourself out.

This is not as simple as it would seem.

Foreign Exchange
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