In foreign exchange, there are no guarantees of profits and there are significant risks
“Foreign exchange trading is risky. The high degree of volatility within the foreign exchange market, particularly within the intraday market, and the ability to leverage your positions means that losses can be quick and significant. It is possible to lose your total investment.
You should never invest money in foreign exchange if you are looking for a steady return on your money and you should never invest money that you cannot afford to lose.
Therefore, foreign exchange trading is only recommended for those who are experienced and/or have knowledge of the market and the inherent risks involved. All potential investors should be clear of the risks involved in foreign exchange prior to investing in the market.
In foreign exchange, there are no guarantees of profits and there are significant risks. You should be wary of any companies promising high returns with low risk. The CFTC (The United States Commodity Futures Trading Commission) has issued an advisory to investors on foreign currency trading fraud.
It is well know that most Forex traders lose money. Is there good proof that there are Forex traders that have made money over the long haul, say 5 years? Or is making money mostly a matter of luck, and eventually everyone loses money.
The problem with forex trading is that it is too speculative and that the transactions are too volatile because of the current world financial crisis.
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