What is Forex Trading?
In a nutshell, it’s the buying and selling of currencies. You can trade everything from dollars to euros to yen. It can be an exciting way to make some money – but there are some reasons you should not trade in Forex.
Here are few things that might dissuade you from trading in Forex:
-The Forex market is the largest and most liquid in the world. This means you can get a good deal, but it also means that many people are trading to make money themselves, leading to our next point…
-There are countless opportunities for fraud and scams with Forex. These range from chat rooms where scammers use fake profiles to lure unsuspecting traders or company websites where they will deposit your funds before disappearing overnight without giving any explanation or warning.
It’s hard enough trying to figure out what these companies do when they’re real; how would you ever know if one of them is a scam?
-It is easy for market makers and brokers to manipulate the data feed that traders use when making their trades – which means you might not be getting an accurate picture of what the currency values are at any given time.
-You can lose more money in one day than if you saved up all year long! The volatility in this market leads to large swings in value within minutes; just because something goes up doesn’t mean it will go back down again.
Unlike stocks, where prices tend to move steadily upward over time, currencies rise and fall rapidly as people buy them en masse before heading back down again…leaving you with many losses.
-It is very difficult to know when the market will start going in your favor and even harder still to predict when it will go back down again – meaning that if you make “the perfect trade” for one day, there’s no guarantee tomorrow won’t be different.
It can also take some time before you see any gains from Forex trading; most serious traders have been at this game for years, and they’re not eager to share their secrets or let newcomers come along too easily!
-The success stories are few and far between because so many people fail miserably after investing lots of money into Forex without understanding how things work. There are an estimated 100 million individual accounts that exist worldwide.
-It’s difficult for newcomers to find success because they don’t have access or knowledge about how things work on Forex; even if luck were on their side when starting, they’d lose everything once the odds turn against them.
In addition, it takes years of experience with currency trading so that you can understand where trends come from and know what’s going on enough not to be taken advantage of by other traders who are more experienced.
Now you know all about the Negative side of Forex Trading in South Africa. If, even after this, you feel you want to trade in it, I would suggest you visit Forex Trading SA – the official website before starting!