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Forex Trading and Your Investor Personality Type

By Edited Mar 15, 2014 0 0

Precisely because of the Internet, it's not anymore impossible for individual forex investors to roll the dice with large trading companies. These days, practically everyone can invest in forex trading. However, simply because you are able to, it doesn't mean you have to.

So, are you fit to become a forex trader?

Usually there are about 3 types of investors:

1. Those who are able to tolerate high risk and high return investments,

2. Those who break their assets 50-50 between risky and low-risk instruments, and

3. Risk-averse, 100% safe investment type of investors

Whether you should do currency trading actually is dependent upon your investment personality. Foreign currency trading is simply not for the faint-hearted and risk-averse. So, out you go if you're type 3.

The forex market is a fast paced world that works twenty-four hours a day, five and a half days per week. For a few investors, fortunes are built and thrown away rapidly, and this is the kind of characteristic that Type 3 investors cannot tolerate.

However, for Type 1 and Type 2 investors with the correct knowledge and sufficient commitment and drive, foreign exchange can be lucrative.

Currently, it's hard to say for sure how many people are making full-time income as forex trading investors, but it's generally acknowledged that they are fewer than the stock traders.

The bulk of forex trading around the world is done by institutional investors like banks and various huge organizations. Private individuals comprise only around two percent of the whole foreign currency trading markets.

If you're interested in foreign currency trading, you can do so right away, but it's best to proceed with caution. Money is easily lost and made in this industry. Keep this words of wisdom in mind: Invest only the money you can afford to lose.

If there's not much of it, try practicing with a demo account, where you can learn the basics of the trade without losing a single dime.



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