Many people view forex trading as a high-risk investment, but there are a number of factors that can affect the amount of risk involved. The first is the leverage that is available to you as a trader.
Leverage allows you to control a larger amount of money than you have in your account, which can increase the potential for profits and also losses.
Another factor that contributes to risk is your level of experience in trading. Novice traders are often more prone to mistakes that lead to losses, while more experienced traders are better equipped to handle the ups and downs of the market.
So, is forex trading risky? It can be, but there are ways to manage the risk and make it more bearable.
By understanding the factors that can affect risk, and by carefully choosing the market you trade, you can trade forex in a very profitable manner.
See also Can You Make A Living Trading Forex?
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