Why currency trading in the FOREX market is a risky business?

Currency trading in the FOREX market is now popular modern business. The volume of transactions of foreign exchange market Forex is constantly growing. This has contributed to the abolition of currency restrictions in the countries of Asia and Eastern Europe, as well as significant developments in the world of international trade. In recent years the development of information technologies has changed the market Forex unrecognizable. If the earlier trade exchange was the privilege of professionals (mostly large banks), but now, thanks to e-currency trading on the Forex have hundreds of thousands of fans. Thanks to the marzhevoy currency trading firms and private individuals with little capital, it is possible to perform operations on Forex. Brokers and dealers of marzhevye services require traders to make the security deposit and allow them to trade in exchange for an amount of 100-500 times higher than the deposit made. The entire risk while intermediaries passing on malopodgotovlennyh clients. Brokers and dealers do not run the risk (for banks Forex is generally a source of significant profit), and an attractive and accessible currency market Forex is becoming «trap» for inexperienced enthusiasts, 90% of which broke.

Anyone who wishes to engage in currency trading on Forex, must clearly represent the highest risks of this kind of business. For luck in currency trading can not be expected, sometimes it helps, but not for long. The main advantage and disadvantage of trade in the foreign exchange market, and hope - this is intelligence trader, only with his help, he can hope to achieve a profit. Forex market has many advantages over other markets.

High risks on the Forex are accompanied by and large incomes. For the literate investor forex - it's very fast to get high returns.

Forex market is stable, compared to the stock market. Currency will not fall is always a welcome commodity. The drop rate of one currency means the appreciation of the other, and the correct tactic allows the trader to make trade, as the increase or decrease in the. A drop in shares on the stock market - this is for the trader's collapse.

Forex Market Hour, he is not related to hours of work, as the linked exchange.

But all of dignity Forex market balances its particularly high risk. Surprising, often nearly invisible, changes in economic or political situation in the trade, or carelessness, and even seemingly minor errors trader instantly turns profit losses much faster than in other markets. Complexity Forex market is that a huge number of factors affect the fluctuation of exchange quotations. Therefore, the ability not to lose concentration, and improve the trading system, to understand the complex mechanisms of the market - these are the requirements for Forex market trader.

Stable profitability of trade in the economic situation bystroizmenchivoy Forex trader can make concentrating on two areas: effective forecasting and management of capital.

Anticipation for the Forex - a complex application of technical and fundamental analysis. Technical analysis - a method of forecasting prices, based on mathematical, rather than on economic layout. In technical analysis trader examines the schedule of prices for earlier periods the market, rightly assuming that if certain types of analysis employed in the past, it will work in the future.

Fundamental analysis - opposed to technical analysis. This seems to look at the market of the future. Fundamental analysis is based on examining the impact of market changes in economy and trade policies of countries. The usual mistake of all traders, novice, hobby and various figures of the indicators in technical analysis - and ignoring the fundamental analysis, but without him it is impossible to construct a reasonable and timely forecasts of movements in exchange rates.

And finally, Get to the start of a real increase in trade «demo» in half - this will mean that you have struck the main methods of forecasting and capital management.

Good luck, though it at Forex and little depen