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Getting Started
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Risk Warning
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The foreign exchange market is one of most
popular
markets for speculation, due to its enormous size, liquidity and
tendency
for currencies to move in strong trends. Presumably, these
characteristics
would enable traders to have tremendous success. However, success has
been
limited mainly for the following reasons:
-
Many traders come with false expectations of the profit potential and
lack
the discipline required for trading. Short term trading is not an
amateur's
game and is usually not the path for quick riches.
-
Because currencies may seem exotic or less familiar than traditional
markets
(i.e. equities, futures, etc.), it does not mean that the rules of
finance
and simple logic are suspended. One cannot hope to make extraordinary
gains
without taking extraordinary risks.
-
A trading strategy that involves taking a high degree of risk
means
suffering inconsistent trading performance and often suffering
large
losses. Trading currencies is not easy (if it was, everyone would
already be a millionaire), and many traders with years of experience
still
incur periodic losses. One must realize that trading takes time to
master
and there are absolutely no short cuts to this process.
-
The most enticing aspect of trading currencies is the high degree
of
leverage used. Leverage seems very attractive to those who are
expecting
to turn small amounts of money into large amounts in a short period of
time. However, leverage is a double-edged sword.
-
Just because one lot ($100,000) of currency only requires $1000 as a
minimum
margin deposit, it does not mean that a trader with $10,000 in his
account
should easily be able to trade 10 lots or even 5 lots. One lot is
$100,000
and should be treated as a $100,000 investment and not the $1000 put up
as margin. Most traders analyze the charts correctly and place sensible
trades, yet they tend to over leverage themselves (take a
position
that is too big for their portfolio), and as a consequence, often
end up forced to exit a position at the wrong time.
For example, if an account value is $10,000 and the trader places
a
trade for 1 lot, he is in effect, leveraging himself 10 to 1, which is
a very significant level of leverage. Most professional money
managers
are not allowed to leverage even this high. Trading in small
increments
on the account will allow the trader to endure many losing trades
without experiencing large monetary losses.
Minimum Investment is only $5,000
US.
For more information please call us: 514-389-7447
or send an e-mail.
Performance:
(Please
click on Robot!)
Today
traders with or without experience can benefit
from trading with the FX Trading Robot.
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