Top Advantages of Forex Trading

I bet that roughly 99.99% of retail traders lose money in forex, but that might be a tad optimistic.



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Actually I have traded forex, swing trades only and did make a few sheckels, but the idea that the retail trader can sit at his PC and compete with the big money trading the forex markets is a pipedream for most people.

But the same people are lured in by the promise of huge leverage (as many have pointed out, very much a two edged sword, especially for inexperienced traders), tight spreads and low or zero fees to trade.

Caveat emptor.
 
Fx allows you trade with currency while taking less risk since you can size down smaller than with a futures contract and scale in. The tight spreads are good - keeps trading costs down.

Just like with futures, options, or leveraged ETFs those without good $ mgmt won't last long.
It is true a lot of people with very small accounts got into Fx and foolishly used way to much leverage - the same thing is going on with people trading futures these days.
 
mr.taylor said:
Hedging refers to taking a position opposite to the initial open position so as to limit the risk. True that, it might not prove beneficial for the newbies as it’s a very complex process and requires proper understanding about the market swings and timing. Playing without proper knowledge can prove to be a disaster for one’s account. That’s why it might not be suitable for newbie.
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Yes need high patience i think when use hedging, because if rush to open lock hedging as newbie often making mistake decision again and not loss will decreasing but possible will increased
 
I think top advantage is liquidity and rapidly tightening spreads that brokers offer due to cutthroat and ravage competition in retail forex industry. Currently I enjoy almost always zero spreads on Hotforex zero spread account and pay 8$ commission. Scalping EA's and manual scalping reap great profits if used wisely.
 
radex78 said:
Yes need high patience i think when use hedging, because if rush to open lock hedging as newbie often making mistake decision again and not loss will decreasing but possible will increased
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Absolutely, newbie need to be very cautious while hedging as if things went wrong then there are likely chances that he might wipe off his account.
 
doggyfx said:
I think top advantage is liquidity and rapidly tightening spreads that brokers offer due to cutthroat and ravage competition in retail forex industry. Currently I enjoy almost always zero spreads on Hotforex zero spread account and pay 8$ commission. Scalping EA's and manual scalping reap great profits if used wisely.
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There are some broker that provided contest, I am also trying to take part on firewoodfx contest start with 10$ only and there are good prize that offered,
 
radex78 said:
There are some broker that provided contest, I am also trying to take part on firewoodfx contest start with 10$ only and there are good prize that offered,
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I see. I also take monthly challenge from Hotforex, participating in demo contest with main prize of 1000$. I think its much worthy rather than trying to make any material profit from 10 bucks
 
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