let's learn forex
In the era of the 70s until the late 90 's, they were more familiar with the lay of the real sector investments such as property and plantation sectors . However, after the monetary crisis hit our country , investors began looking for this type of investment with great returns in a short time and this is where the trend started booming financial sector investments . Investment real sector ( eg property ) generally requires substantial capital and takes a relatively long time to develop because of the amount of capital it is not as fast as the liquidity of the financial sector . Take for instance when we buy a house for investment . The surplus value is usually never decreases and always increasing . But on the other hand , after a few years , you want to dilute your investment , then you should look for someone who has sufficient funds to buy your home value may have gone up tens to hundreds of percent . Looking for buyers who like this is not easy , where the liquidity problems occur . As with the financial sector . Investments in this sector have a tendency to be more liquid and relatively larger returns , comparable to the risk. Another plus is the number of investment products offered in this sector
So where is the position of Forex Trading ? He is in the class of the Money Market & Commodity Futures Exchange . Forex trading is an investment in the financial sector, which is classified as the high risk-high return investment . That is , the opportunity to earn huge profits even can reach hundreds of percent per month , but is offset by the possibility of large losses if not managed properly . You need to understand the concept of high risk- high return here . Basically , all types of investment has the possibility of losing money . The magnitude of potential losses will be proportional to the magnitude of the potential benefits that can be obtained here . The greater the potential benefits to be gained here , the greater the potential losses that could arise and vice versa .
If you are classified as safe investors who do not like risk or ' shocks ' in your investment portfolio , it appears that forex trading is not suitable investment for you . This is because forex trading is an investment that has a very fast movements in liquidity and in price movements . Logically , forex trading can only carry you make a profit of tens to hundreds of percent in a single day , but also can bring you lose the same amount . If you are a risk taker , then forex trading is a type of investment that suits you , in a sense to earn huge profits , then he was ready to bear the potential loss of the same magnitude . So is there a way to minimize potential losses exist ? Of course there is ! Risk management and analysis capabilities you is the key here . The better you in performing risk management and analyze the movement of market prices , the smaller the potential loss that may occur . Everything is proportional .
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