Why is forex considered significantly more risky than other markets?

[topdeck]

I first got into trading about a year and a half ago trading spot forex. I constantly see advice that newbies should avoid forex. The implication is that it is too risky or too difficult.

I work hard to analyze my trades and understand whats going on in the market before putting my money on the line. I'm sure trading any other market would involve the same kind of due diligence. Does the difficulty in forex come from the difficulty in doing your due diligence? Does it come from the volatility? the leverage?

In my mind, a market is a market. If there was an "easy" market, then that's where everyone would be and the profits would vanish. Am I wrong here? Are there other easier markets out there?

 

[mindtrade]

Quote from topdeck:

I first got into trading about a year and a half ago trading spot forex. I constantly see advice that newbies should avoid forex. The implication is that it is too risky or too difficult.

I work hard to analyze my trades and understand whats going on in the market before putting my money on the line. I'm sure trading any other market would involve the same kind of due diligence. Does the difficulty in forex come from the difficulty in doing your due diligence? Does it come from the volatility? the leverage?

In my mind, a market is a market. If there was an "easy" market, then that's where everyone would be and the profits would vanish. Am I wrong here? Are there other easier markets out there?

What you say is true but mainly the bucketshops and leverage has given forex a bad rep.

 

[southbeach4me]

Quote from mindtrade:

What you say is true but mainly the bucketshops and leverage has given forex a bad rep.

Very true, one should use only ECN brokers like MB Trading, Interactive Brokers, Alpari USA(min acct $1000)

and don't leverage more then 100-1(preferably 50-1 max)

im giving this advice as a very experienced and PROFITABLE forex trader( over 3 yrs )

* study support, resistance zones, intraday pivot points and fundamental bias, and always use protective stops!...never avg down!