As a professional investor you should learn to look at all the
investment scheme is not always from the profit. There are many other
factors in addition to the beautiful dream of profit you should know and
one of them is called risk. Forex is an investment that belongs to high
risk-high return investment program.
It means it is an
investment that has a high degree of risk. But also yield a high profit
back. Yes sebandinglah with risk. Well, both sides of the profit and the
risk is inseparable from each other. It's like a side adjacent to the
currency. There are however Yet there is a cross
OK then let's start talking about both of these things. Then because I
was a ready umbrella before it rains, I will discuss the risk side
first. Hope this cheerful day not be a gray day after you read this
article.
Broadly speaking, there are three main things you need to know before starting your forex investment especially from problem risks. First, the total loss possibility (this means the possibility of
loss overall) could reach 90% of all the funds you invest.
Uh, what? 90%? Not so good as it sounds. Yes it is not so good. But
remember this is the worst possible that might happen. Why can reach
90%, due to the God that we know helper named margin trading. Nah not
gods helper again dong ...
Remember when Amir doing opening
position buy as much as 1 lot in instances when we learn about forex
investment mechanism? Well if you forgot you need to open it up again on
the mechanism of forex trading.
Well, now Amir buy as much as 1 lot GBP GBPUSD pair diharga on 1.9600.
In the case when the GBP strengthened against the USD, then Amir will
benefit. Now how about if that happened instead? What if the price moves
down? The extent to which the position of Amir can last?
In
the forex trading
Brokers usually set a price
above the minimum deposit 1 lot. There are some brokers who set a
minimum account opening $ 250 or even $ 500 US. What's the point?
Yes! Correctly, to hold the position when it turns out that the price
moves against the position of Amir. Now suppose that Amir started with
his investment of US $ 250. 100 pounds (equivalent to US $ 196) is used
as a guarantee Open position Buy he did. Then the rest of the Fund be
250 – 196 = US $ 54. 54 Dollars from this Fund is used to maintain the
position of Amir that opens when it turns out that the price moves down,
instead of rising as expected of Amir
. In the forex market
are typically based currency used is the US Dollar. It means that all
transactions will be converted into USD and are all listed on the
platform is already in
dollars. The question now, with the
remaining funds 54 dollars, how far are Amir can defend his position?
And what happens if the price moves down and the Dollar 54 runs out?
Good question
.
The answer to the first question, Amir can maintain its position until
the price moves down as far as 54 points because basically 1 point is 1
Dollar price GBPUSD. So if prices fall through to the rest of the funds,
then 1.9546 Amir the 54 Dollar it will be depleted.
Then what would happen?
If the rest of the funds that the 54 Dollar Amir runs out then the
position of Amir open will be closed automatically by the system due to
the lack of longer guarantee in the opening position. In doing so, Amir
suffered losses amounting to 54 dollars and now its only remaining US $
196. Sorry Amir ... Amir
situation naturally called margin
call. A margin call is closed in position automatically by the system
due to the substantial guarantee fund owned. An unpleasant things for a
trader. Nightmare
to be exact. Well now the question how long a margin call that happens
ding market even though you can open as many as just 1 lot
and need a guarantee of only 100 Pounds, does not mean the minimum
initial capital deposited was only 100 Pounds (Yes
approximately Usd 1.5 million).
If Amir started his investment with US $ 1000 then there are remaining
funds reached US $ 775, meaning enough to restrain the movement several
times. It should be noted that the prices never go up and down in one
direction ber times-times. That means there's a chance after going down
100 – 200 points instead of prices again moving up past 1.9600 and Amir
profited.
So that's the first risk that we learned. Quite bitter indeed.
The second is there the risk of further problems of liquidity. We have
already alluded to a little above that for GBPUSD movement can reach 100
points in a day only. That means the possibility
of profit/loss reached
approximately Rp 1 million per day!
Well, pa means this?
Means you can lose your funds and experienced total loss as mentioned
above and everything that's happened in a very short time!
Try to calm down and think what if this happened to you?
You lose $ 250 in just one day! Or let's say you save 6 months to be
able to start your forex investment and it turns out within 6 days all
your savings gone there was no trace. Theoretically this may be
happening in the forex market. Something bitter but real and possible.
How would you feel if this happened to you?
So with 2 it is
understood that the word is true indeed that forex is a high risk – high
return investment program. Investment berresiko high but also with a
high return. And the two are inseparable from each other. Don't ever be
fooled by the marketing that accentuates that side benefits without ever
alluding to the possibility of loss that may occur. A good forex
marketing shall also act as investment advisor for the other
The latter relates to the risk is a matter of trading methods. If the
dilihat-lihat of the two points that we discussed together the above
certainly you concludes that the decision to perform buy/sell decision
is the most crucial and very significant. When to come in, how long and
buying or selling is a decision that affects our funding will be in the
future.
If so the crux of all this is whether we are capable
to predict price movement or not. They are reflected in the analysis we
learned everyday. The trading method is what we use and how the system
we milki determine whether you end your career as a trader or a looser
.
The bad news, there is no single method of trading that can guarantee
you will definitely experience the continuous gains. A trading system
that was created by the best forex specialists around the world. This is
because a system is not necessarily fit the profile of the person who
wore it. Yet the issue of capitalization. Yet how to trade. Yet trading
hours. Yet how to analyze. And the most important is not to mention the
psychology of belonging to each trader. This causes none of the trading
methods that can ensure you achieve 100% profit and experience
continuously.
You can follow the best trader you will ever know. But even then it is not a guarantee You a profit.
Well how? It seems to be a forex so scary to you? I have yet to tell the
stories of those who are "less successful" in forex lho j. 's good
doesn't mind. Than later BelajarForex.com no longer visited people again
for fear of risks of forex hihihihi.
But don't worry, I won't
leave You bewildered face all the risks above. What is the worst risk
is presented that might occur against your account. Anyway there are a
series of ways to prevent it all happened against your investment. Here
are a few things you need to consider in respect of the risk of
investment in forex:
1. Make sure the funds you invest more funds that are idle/devoted to it (risk capital)
we mean by idle funds are funds that are indeed "unused" or not used
for a certain purpose. So it was set aside for investing and investments
are at high risk. Yes. .. Yes ... Yes I know that there is no unused
money. All unused. But I mean here is the
do not use child
education fund or your family health fund to invest in forex. What will
you do when your child's Education Fund ludes because forex? The little
one did not attend school because his father less calculation TSK ...
TSK ... CK ...
Another one, it is strongly recommended not to
mengutang to play forex. I am seriously lho. There are some people who
act too bold with her credit card swipe to play forex. If you are
already proficient and have sufficient experience to play the forex
profit yes no comment at all. But if the past still lay ngutang ...
Ah never mind. The important thing You already understand what I mean.
2. Don't rush to invest real just because you have understood a one-two technique forex.
Even I still learn and continue learning while this article was
created. Never consider yourself too proficient in trade simply because
you have read a "secret recipe" of someone who has lived the forex and
profit.
3. Use a demo account for quite a period of time before starting real account.
The broker forex online trading service providers typically provide a
demo account free of charge for anyone who interested in forex to
practice and get used to using their platform. Privilege of a demo
account is all pricing and regulation is exactly the same as real
accounts. The difference is only in the world of real money we use Yes
virtual money aka money knick-knack. So theoretically if you experience a
profit on a demo account then the profit on a real account is not much
more for you.
Now the barriers are is often though they try
the demo account and their profit, time to practice on the demo is not
enough. But brokers typically provide time of 1 month (and could be
extended) as long as we need until we feel truly proficient and ready
towards the real account. Once again an impetuous made many accidents
need not be must occur.
4. Use Stop Loss and Limit to restrict the advantages and disadvantages of
Stop Loss is a facility provided by the platform to limit losses that
may occur in our position when an error occurs in predicting price
movements. While the Limit is useful to determine at the price we wanted
to do the taking profit. Both of these facilities are commonly
available on forex trading platform. We will discuss further in section
Forex online trading and the Facility at a glance.
OK we've
learned about the risks that may occur in the following trading some way
penanggulangannya. You might start to think twice about trading due to
the article you just read. Good riddance if it is indeed the case. Since
that is the purpose of learn Forex. Help you to get started investing
in the right way, measurable and reasonable.
Surely not draw
to discuss their risks without knowing how large the potential that you
might get in a trade. Fair well for we also need to know the extent to
which of the possible advantage we gained with forex trading. But it
feels like I don't have to explain too long on this subject.
Well, there are many people who actually trade and benefit to tens to
hundreds of thousands of Dollars every month. Although more of them are
loss (many of them shouldn't need to loss if they have enough patience
and a better way of trading), forex remains a field of investment that
offers benefits like no other conventional investment.
The
potential profit on forex can reach tens to thousands of per cent each
month. Some beginners forex studious and quite well acquainted with the
we were able to achieve a profit in trading to reach hundreds of percent
in each month. Dear record deals they couldn't we show here due to
privacy.
With simple counts based on the average movement of
for example a GBPUSD currency capable of moving up to 100 points a day
then by installing 1 lot just a day that means we can benefit 2000
points within one month (20 days x 100). Pretty passable. Us $ 2000 if
made a Dollar. That's just 1 lot lho. Try what if we put up a lot that
gets bigger as you get the funds we have? Be big and getting bigger.
That's why many overseas traders who trade to finance their lives (even
their wives) everyday. The term cool Trading for a Living. Hmm ...
quite tempting isn't it? Enough of the home only and does not need to
traverse the congestion in large cities, hundreds to tens of thousands
of Dollars could we produce only from trading. Thus trading can also
help the quality of life of those who do so and also reduce pollution on
the road (he ... he ... he).
Just imagine how the resulting
effect if you managed to make a proper trading formula for yourself
personally. A groundbreaking financial (financial independence) became
part of your life and you can now leave the destiny become your lifetime
employees. Hmmm .... Sweet dream heh?
So in fact of what we
learned today is that it's basically known advantages and disadvantages
which may occur is comparable to each other. Market can become the best
friend for anyone who profit. Instead, he can be the enemy of the
terkejam you meet because it can meludeskan your investment in a jiffy.
Well before you go any further with your lessons. Looks to me like who
would want to invest in forex hasuslah a love an adventure price aka
risk lover. If you are a risk averter aka those who don't like risk,
please stay away and choose a less risky investments like forex.
