Risk comes from not knowing what you’re doing — Forex for Dummies
For years forex has been very popular. However, in the current situation, we see its popularity become more relevant than ever.
There are many benefits to trading forex, which include high liquidity, amazing trading volume above 6 trillion USD daily, convenient trading hours (market is open 24/5), the ability to trade both directions — long and short; and the ability to trade on margin.
In addition to offering currency trading, regulated forex brokers also provide an opportunity to trade CFDs (contract for difference) on selected commodities, stocks, indices, and digital currencies. They also provide a variety of trading instruments, as well as many electronic trading tools like automatic stop loss, take profit and trailing stop orders; this enables higher control in terms of risk management to individual and professional traders.
But all this does not exclude the fact that many of the new traders have little to no knowledge what are they actually doing. YouTube tutorials and trading manuals can just briefly explain the process of trading. It takes years of expertise to know when and what to trade. The now time increase in trading and interest in Forex came from the following reasons: Due to the current regulations worldwide, with entertainment close to non-existence, people are home and are looking for new things to do and learn. Increase in unemployment has led people to find other ways to generate income from their savings. The gambling factor. Lockdowns and restrictions in western countries and their impact on gambling have pushed game players to find their fun in trading markets, the risk of not knowing is almost as exciting.
The reasons above are pushing the not informed trader to maximum risk. As Warren Buffett said: “Risk comes from not knowing what you’re doing.”
It is clear that the pandemic had a significantly adverse effect on global trade and as we continue to become accustomed to the new norm and the global economy continues to recover, the forex market will continue to grow and present opportunities for the creation of sustainable revenue streams. But do not get fooled by the glittery world of promising numbers and fast money. Even the most experienced trader cannot forecast everything.
Our team of expert analysts and traders have extensive knowledge and experience in navigating the ups and downs of the forex market and taking capturing the profits made available by the dynamic nature of socioeconomic relations and the global trade environment.
Reach out to AIX Investment Group for a professional advice on your investment and we will be happy to appoint one of our Financial Advisors to guide you through your journey of financial independence.