Why is the forex business an attractive business?

This time we will discuss the forex business, many people have questions. What are the advantages of the forex business? And also further questions about how to do it.

Many sweet stories like om George Soros who conquered the Bank of England, Warren Buffet who became one of the richest people in the world after gaining a tremendous profit from his stock portfolio. Just hear that we can think, this forex business is one vehicle that can make someone as successful as the two successful traders.

To be able to find out more about whether this forex business is suitable for you, it would be nice to read in advance the advantages and disadvantages of this forex business.

Here are some of the advantages of the forex business:

o   The capital needed is not large, it can start from $ 1 - imagine if you want to open a new business, you must calculate the cost of renting a place, the cost of renovation where you sell, not to mention the capital to buy goods sold, pay employees and so on. If you calculate it, you want to have a store class business, you can spend 30-50 million just by preparing it, after that to break even the return on investment can take 1-2 years. With a forex business you can start with $ 1 for trading and also learn the ins and outs. After being fluent and profit, you can add capital that is used to enlarge the results obtained.

o   It can be done anywhere - just open the trading application using either a laptop, gadget or computer and enough internet access, so you can trade anywhere.

o   24-hour trading hours on weekdays - with long trading hours compared to trading stocks, options or futures. The forex business allows us to choose the hours we like the most, trade when the Asian market opens, or when we open a free open European market.

o   You are the boss - no one can deny that working in a company when there is a boss must be ready, ready boss, yes boss, good boss and so on. Not to mention if there is politics in the office that can be cruel. With the forex business all these events can be avoided, you are the boss who wants to start working at 12 noon, no one will scold, even if it is finished at 1:00 no one will comment.

o   Ease of getting information to learn - in today's world it's easy to get trading techniques and also information related to money management, fundamental analysis, technical analysis, and various other information. Unlike in the past where this information was limited to professionals. With a variety of capable knowledge weaponry it will facilitate success in the world of trading.

o   Many features that help beginner traders - There are features of the trading broker platform to join signals or copy transactions that are placed by top traders. If you still want to learn and do not have experience, you can try to copy trades while observing how the top trader's trading techniques are followed

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Side losses may not be many, but here are some disadvantages of forex trading:

o   Fatal errors can scorch all capital - of course you often hear this, a case where many people lose and then abuse trading while saying ... This is JUDI! Even though it is not necessarily true, the trader may make a common mistake made by beginner traders and traders who are never lucky.

o   Non-routine income - there is a month that wins, there is also a losing month. Realistically if it is still small, the forex business is recommended as a side, until the profit is stable and can replace the routine income needed then release the main job.

Without careful preparation, a trader who had already assumed that he would get a big profit could be actually not profitable, but instead he was lucky, and instead of having an improved lifestyle, he was even trapped in bankruptcy and even debt. Here are some mistakes that need to be considered as a beginner trader:

o   Unrealistic in the face of risks - losses are commonplace in business, if we ask successful business people in this world, have you ever suffered a loss? Guaranteed 9 out of 10 people will tell you about the losses that have been experienced. In the world of trading loss is a natural thing to happen, how traders deal with risk is what determines whether he will succeed or not in the future. The mistake that often occurs is that traders believe 100% of the direction of the currency will go up, so he immediately put up a massive position and it turns out that suddenly an announcement surprised the bank to change the limit of exchange rates so that this trader suffered a big loss. Please check the news when the SNB (Swiss National Bank) threw out the "floor" of 1.2000 from EUR / CHF on January 15, 2015 which caused the currency pair to plunge almost 4000 pips in 15 minutes.

o   Absence of discipline - Already mastering the science of trading and how to make profits, the next step is discipline in making transactions. Traders who lose money may already have a system, but when they do, they see prices going up and down and thinking. "Wow, it's already close to going up again in price!" Finally, he put the position when the price went up, apparently not long after the price dropped to the planned place, as a result, he was confused, now what's out, continue to hold huh? Because hesitation is finally being held and getting down, hmm, how does this have to come out but it looks like it can go up ... Finally it was left in the hope that it could rise ... and it turned out that the price was getting lower, the lower and the margin call warning came out! The trader was sorry but it was too late.

o   Fast moving from one system to another - This type of trader is very fond of collecting systems, so much he tried one at a time. Only 5 transactions have been subject to loss, he immediately said that the system is not profitable then replacing the system, this incident continued until he finally succeeded or ran out of capital. Indeed, not all systems that are successful for one person will succeed for the other users, however, to test a system successfully or not statistically, based on research at least 100 transactions are needed. Therefore if you start trading later and use a system such as a moving average trading system, make sure to try up to 100 transactions before saying that the system failed.

o   Absence of trading journals - without journals it is difficult to know whether the method is successful, with a journal note can observe whether it has been carried out in accordance with the system used, and also if recording psychology when placing a position, can know whether it is due to human error or because indeed the system is on a reasonable loss path if there is a loss.

Now that you already know the advantages and disadvantages of the forex business, as a note anyone can do forex business successfully, what is needed is to really take time and study seriously while correcting the wrong way.