Currency trading risks can be extraordinarily high. For several reasons.
One, is the fact that the conditions that affect the market are hard to anticipate on a short-term, day-to-day basis. Look at financial news daily reports to see how sentiments can be erratic.
Then you have the danger of extreme leverage. Fine for making lots of quick profit. But situation that’s capable of severe losses.
Take trading on the dollar; for every small $10,000 account you may keep, which you can leverage 50 to one, a move in the wrong direction can wipe out your entire investment. ( See the Earl J Weinreb NewsHole® comments.)
No comments:
Post a Comment