Disadvantages Of Forex Trading
For those of you who are sitting on the fence and thinking if you should put your foot into Spot Forex trading, perhaps the disadvantages of Forex trading listed here can help you decide if you should stay out.
Even though there are many advantages of Forex trading, the disadvantages mustn’t be overlook. Depending on individual characteristics, there are some that may find Forex trading is not your cup of tea.
Disadvantages Of Forex Trading
- It’s a fast moving market and not to be traded with a gambler’s attitude. For those who have that gambler’s instinct to try and recover losses in the shortest possible time, you are likely to be carried away and may end up with huge losses.
- If you are a perfectionist, Forex trading may not suit you. You are bound to lose some trades, the fact is you cannot win all of them. If you have the alter ego that you must win all trades, then Forex trading is not for you. Remember, there’s no ego here. Frankly speaking, you and only you are aware of any win or losses that you chalk up. There’s noboby looking over your shoulder to see how you perform.
- Risk of choosing a broker that doesn’t suit your trading style. Not all brokers are created EQUAL! You will need time to check out different brokers and if what they offer suits your trading style and strategy. Not all of them are WYSIWYG (what you see is what you get). Believe me, we have tested 6 brokers to date with live account and not all of them meet our one common need. It doesn’t mean we disqualify all of them but it means we have different accounts for different strategy because some work better than others. So the chances are you may need to open more than one account with different brokers to check them out before finally deciding which one suits you.
- Coming across the next greatest Forex robot or expert advisor (EA) to be ever released and believing all that you read and putting all your money into it. Another acronym for EA is Erase automatically! There are plenty out there when you do a search and new one appearing all the time given the popularity of Forex trading but be forewarned that Not all Forex robot are created Equal! Not all Forex robots or Expert advisor will give you the same performance when run on different broker and on forward testing. Again, this is an area that we have been doing a lot of forward testing.
- With the easy availability of information over the internet, you are very likely going to suffer from information overload if you start searching for the best strategy and indicator looking for the Holy Grail of Forex trading that is going to help you win enormous amount of money. And before you know it, you could be all confused and mixed up with all that you have been reading and your chart could be overloaded with indicators that you don’t know what you are looking for.
- Need to invest not only money but also lots of time to gain experience and knowledge. Some lessons don’t come easy and can be very painful. Some things, you will only learn when you have been sitting in front of your computer and monitoring for a while before you realize something is wrong or how some things differ from broker to broker.
Discouraged By The Disadvantages Of Forex Trading Yet?
So, if you are still considering the pros and cons and undecided, head over to the other post on advantages of Forex trading and look at it to see if the advantages outweighs the disadvantages of Forex trading or make you more confused!
The choice is yours. If you decide to join in, Good luck and safe trading!