DISCLAIMER

The comments and posts published in this blog ARE NOT trading recommendations. They can NEVER be considered as trading calls or advices. If you decide to use the information offered here for your real trading it is at your own risk.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. we will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Tuesday, January 26, 2010

98% failure rate

The hype of the failure rate has to addressed early.

I don't quite understand what feeds this hype. The truth is that with any business, a lot of new ventures are bound to fail. Whichever field you may be active or employed in, I am sure you can recount 10 businesses or people who failed for every one that succeeded. In fact, 95% of all registered companies get dissolved within 3 years. Forex trading is also a business, an enterprise. The reason why it is also subject to this failure rate.

Another belief that is completely personal to me is that 98% of people end up being in a field which is not their chosen best. How can they succeed if they are not in love with their work. Majority of the failed traders are people who came in to make a quick buck and move on to something else interesting to them. They add to the woes and the stats.

I don't want to say that these people will never be good at investment decisions. I would rather say that they should not be actively involved. We have a lot of other options to grow your wealth through regulated, managed funds. However, currency trading is something they should never try out first hand.

So decide if you have a belly for this sort of high risk investment. This decision will definitely make your next steps easier.

No comments:

Post a Comment