Is It Profitable To Invest In Forex?
Investing in forex is nothing new. Since its origin in the 20th century, the currency market has not stopped growing. So much so that, currently, it is the market with the highest volume traded in the world.
Everything about trading the markets takes a lot of time, dedication and knowledge. Like any discipline, it requires a methodology. A methodology that, among traders, is known as a trading system.
One of the reasons that indicate that investing in the stock market and, specifically, investing in forex, is not easy is the percentage of traders who lose money. The majority of serious studies carried out on the subject affirm that the percentage of losers exceeds 90%.
Is It Profitable To Invest In Forex?
One might ask, “Is Forex good (เล่น forex ดี ไหม, which is the term in Thai)?”. Investing in forex is profitable if you know the currency market, the brokers, the operations and you are an experienced trader. The currency market is characterized by being a much more volatile market than other markets. The volatility offers many opportunities to generate larger profits but also losses bulkier.
In conclusion, investing in forex can be profitable if the trader knows what he is doing, why he is doing it and has a robust trading system.
Is It Advisable To Invest In Forex?
This will depend on the experience and knowledge of a trader. If the trader has several years of experience in the stock market, it might be a good option to create a trading system dedicated to forex. If you are a person who has only been one or two years with little training and little experience trading on the stock market, it is not recommended.
In line with the above, another reason why it is not recommended for novice traders is the high leverage that brokers allow. During the first two years of a trader’s operations, it is very common to make big mistakes. One of them is trying to earn a lot of money in a short time; which causes the trader to use a high degree of leverage and lose even more money than he invested.
