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The 90 Percent Risk In Forex Trading |
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If you are considering an investment into the Forex market, it may be time to take a step back and to really examine if this is the right market place for you to be in. Because of the high level of risk, those without the ability to lose money without losing it all should not be placing their money into this market. One thing that you may hear from time to time is that in Forex, 90 percent of people lose out within their first year. Is it true?
This is the data that is often available. Of all of those who get started in Forex each year, 90 percent of traders will lose all of the money they put into Forex. Only 10 percent of those who get involved in Forex will make money during their first year. This is often a question posed by many new Forex traders because the reality is that you are likely to be in the losing percentage of this transaction.
It is true that many of those who start in Forex will lose their money. There are many reasons for this including a lack of strategy, a lack of training and experience and even arrogance. It is also true that 90 percent of those who invest will lose their money. This refers to each trader that is attempting to make a profit from Forex trading during the first year that they are active in the market place. The numbers do improve, though, for those that stay past this point. In fact, those who are still in the business after one year do not lose money or quit (this is the other 90 percent of the formula) and those that are able to carry on successfully trading are the ones that make up that 10 percent block of people.
There is risk involved in Forex trading. There is no doubt that everyone will lose money from time to time and this is often why so many people do not get involved in this process. However, before you find yourself in a position where you are unable to lose money, be sure that any money that you put into Forex is money that you do not need to pay your bills. It should be money that you can afford to lose. In addition, learn to make the right decisions to reduce your risks here.
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