Risks of Running a Forex Business – However, even though there are these advantages, it does not mean that success in investing in forex can be achieved easily. Don’t forget that investing in forex also has risks. If you miscalculate in trading, you will not only lose money in the account, but also may need psychological therapy to cure your disappointment. Poor risk management can make your account completely forfeited.
In addition to risk management, another mistake that can lead to failure is leaving the account unmonitored. You may choose to use only one analysis, technical or fundamental, but you must be diligent in exploring the method of analysis. For example, if you have decided to choose fundamental analysis, then you are obliged to always follow the latest news releases. If you are lazy to follow the news, it is tantamount to leaving the transaction without taking the risk.
To avoid losses, there are demo accounts that were deliberately created for traders to practice how to read the platform, charts and information to support your analysis. Demo accounts allow you to trade with real market conditions, but with fictitious money that cannot be withdrawn. With this demo account, even if you lose, you have nothing to lose.
Then there is also what is called mini account. With a mini account, you can trade with small capital. You don’t need to prepare thousands of dollars to open this mini account, but you only need to prepare small funds, starting from 1 USD or 5 USD. The trading value of the mini account is one tenth of the standard account. Trading with this mini account is suitable for investors who do not want to get big losses and minimize risk.
The SeputarForex team hopes that this article can give you a clear understanding of how you can switch from conventional investments to forex investments to reap greater returns from the funds you already have.