What You See About Forex

If you have excessive funds, then tend to invest in property, Franchise purchase. Even if you want to invest in the non-real sector, stocks and mutual funds are preferred forex trading. The reason, stocks and mutual funds look 'more real' compared with forex.What You See About Forex

But along with the increasing intelligence of Indonesian people in investment, it can be said that forex trading will become one of the main alternative on non-real sector investment in addition to stocks. The amount of return that can be given and liquidity of forex trading become one of the advantages of the investment sector. Plus, the government began to play an active role as a regulator in futures trading products (such as forex, commodities and indexes, etc.).What You See About Forex

The fundamental fear is about the principle of "High Risk High Return" from forex trading itself and lack of education to investors, causing difficulty for novice investors in predicting the movement of a price that ends in a loss. On the high return side of forex trading causes anyone can earn big profits in just a very short time. But like a double-edged sword, if we can gain a large enough profit then the risk of losses is equally large and directly proportional to the mastery of trading techniques, information and mental investors. The problem for a novice investor is mostly just looking from the High Return side of forex trading, which is where the profit can reach 20% of the original capital in just one day. What You See About Forex.But not on its High Risk side. Plus the existence of some local marketing forex market by highlighting the side of his return merely without providing information or enough trading ability. In the end the losses of new investors form the stigma of bad society that forex trading is the same as gambling.

Nevertheless, there are actually risk management facilities that the system provides for us, in handling the huge risks of forex investing. So, although risky, not entirely so. What distinguishes between investment and gambling is that, although both have the element of speculation, investments have analytical and predictor instruments in reading the situation forward. That is, investment is not just a venue of speculation, the element of speculation should be smaller than the predicted value of certainty. If not, then it becomes a gambling event where the science used is only the science of probability (opportunity) only.

Forex trading has a variety of indicators of analysis, both technical and fundamental, To predict a movement of foreign exchange rates. So the strengthening trend and weakening of a currency can be predicted with the existing analyzes (analysis> speculation). Another consideration is if it were gambling then of course this investment is prohibited by government and government in other countries. On the contrary, its presence strengthened and the velocity of money that occurred greater than other stock products. Many people say that: forex trading is synonymous with gambling. And this assumption will be more widely with the existence of some customers who suffered losses on this one investment instrument.

Subject to other considerations, if forex is a gambling, of course, this investment is prohibited its existence by the government or by governments in other countries. Instead of being banned, its presence is getting stronger and the velocity of money is happening even the biggest compared to other bourse products. Customers who experience losses in the forex market (many of which are experienced by a newbie) cause them to assume the forex is the same as gambling. Though the only cause of the loss of their funds is their own! They may know about forex trading but do not master it. Due to a lack of understanding of existing analytical instruments, the potential for losses becomes greater and that is what happens to them.

There is an old saying that those who know will be defeated by those who understand. Those who understand will be defeated by those who rule. Those who rule will be defeated by those who like and those who love will be defeated by those who live. I think this also applies to forex trading.