I agree with Agin.
Even though you may have 100:1 or even 200:1 leverage, the broker doesn't call you and ask you to deposit 200X the money if you lose. Your risk is limited to the amount of your deposit in the trade or the amount of your stop loss times # of lots traded times the value per PIP.
It is easier to trade and less dangerous than stocks or commodities. Because you can trade in smaller increments it makes it easier for most people to practice sound money managment. I know people who lost a lot of money in commodities because they took $10,000 to a broker and "bet" it on a particular commodity and when the market moved against them they had to bring in more money. That's not the way it's done in Forex. You can open a small acount and risk only 2% or 5% and trade for a long time even if you are only 50% successful.
I agree also that training and education are the key. Discipline is essential. Trading is not a casino it is a business.
I think that the Day Trading Rule applies to Forex and the way around that is to trade as a corporation or LLC. Any business should be done inside of an entity and trading is no exception.
Those who trade as individuals and consider it a gambling hobby pay the taxes. Professionals trade inside of entities as with any business.
Best of Success!
Even though you may have 100:1 or even 200:1 leverage, the broker doesn't call you and ask you to deposit 200X the money if you lose. Your risk is limited to the amount of your deposit in the trade or the amount of your stop loss times # of lots traded times the value per PIP.
It is easier to trade and less dangerous than stocks or commodities. Because you can trade in smaller increments it makes it easier for most people to practice sound money managment. I know people who lost a lot of money in commodities because they took $10,000 to a broker and "bet" it on a particular commodity and when the market moved against them they had to bring in more money. That's not the way it's done in Forex. You can open a small acount and risk only 2% or 5% and trade for a long time even if you are only 50% successful.
I agree also that training and education are the key. Discipline is essential. Trading is not a casino it is a business.
I think that the Day Trading Rule applies to Forex and the way around that is to trade as a corporation or LLC. Any business should be done inside of an entity and trading is no exception.
Those who trade as individuals and consider it a gambling hobby pay the taxes. Professionals trade inside of entities as with any business.
Best of Success!
