During the 1970s until the late 90 's, they are more familiar with the
lay sector investment such as real estate and property sectors. But
after the monetary crisis befell our country, investors start looking
for these types of investments with large return within a short period
and this is the trend of the financial sector investment started
booming.
Real sector investment (property for example)
generally requires a large capital and takes a relatively long time to
develop because of the magnitude of the capital thus liquidity is not as
fast as the financial sector. Take the example of when we are
buying a House for investment. The extended value is usually never
decreases and is always increasing. But on the other hand, after a few
years, you want to withdraw your investment, then you need to find
someone who has enough funds to buy a House whose value You might have
gone up in tens to hundreds of percent. Looking for buyers who like this
is not easy, this liquidity problems going on.
Another case
with the financial sector. Investments in this sector have a tendency
more liquid and return to the relatively larger, proportional to the
risk. Another plus was the large number of investment products offered
in this sector.
Where the position of Forex Trading? He is in
the money market Futures Commodity Exchange &. Forex trading is an
investment in the financial sector which belongs to the most high
risk-high return investment. That is, the opportunity to earn huge
profits even can reach hundreds of per cent per month but is offset by
the likelihood of heavy losses if not managed properly.
You
need to understand the concept of high risk-high return here. Basically,
all types of investment have likely losers. The magnitude of the
potential loss will be proportional to the magnitude of the potential
gains we can get here. The greater the potential gains that can be
obtained here, then the greater the potential losses which can also
arise and vice versa.
. If you are a risk taker, the forex trading is a type of investment that fits with you, in the sense of to earn huge profits, then he was ready to bear the potential loss of the same magnitude.
Then is there any way minimize the potential losses are there? Of course there is! Risk management and the capability of your analysis is the key here. The better you in undertaking risk management and analyze the movement of the market price, then the smaller the potential loss that may occur. It's all proportional.
