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A Guide to FX Trading By Artur Hochberg

Currencies / Forex Trading Oct 02, 2019 - 12:16 PM GMT

By: Travis_Bard


Planning to trade in the currency markets? Below are trading tips from Artur Hochberg that will assist you in managing the risks for profitability and longevity.

Most novice traders getting into the forex market tend to think of it as an investment for their money. Some will go as far as to call it a 'safe' investment. Artur Hochberg, however, says that there is a big difference between trading FX and investing in stocks or bonds.

A Guide to FX Trading by Artur Hochberg
An investment in the traditional sense of the word should be held for long periods and allowed to appreciate. An asset defined as an investment also presents a balanced or low-risk profile.  Forex trading processes, on the other hand, are high risk and reward trades usually accomplished in hours or minutes.

Putting your money in this type of trading is risky, but the risk is manageable. You, therefore, need to study your risk appetite and come up with a trading strategy to manage that risk.

Forex trading tips by Artur Hochberg

Trading FX is not a get rich quick scheme

Forex trading is often portrayed as an easy and fast money-making scheme on social media. It is very easy to fall prey to images of young people living lives of luxury online, thanks to their stock market genius. Every other day thousands of people follow these modern Wolf of Wall Street traders leading them to believe that making money off of FX trading is easy.

Contrary to that opinion, your forex trading account is not going to grow overnight from a $100 account to a $1 million account.  Artur Hochberg says that the amount of money you will make in FX trading is largely determined by the level of risk you are willing to take. This risk, as mentioned, can only be managed with a thoroughly thought out trading strategy.

Not to dampen your spirits, there are thousands of investors out in the FX market today, making an enviable amount of money. They have, however, developed their trading skills slowly over time, to become the powerhouses that they are today. It will, therefore, take your time to make a sustainable income off your FX trading account. If you try to make money from the market too fast, the chances are that you are going to lose your capital fast also.

Leverage can cause loss of capital

Newbie traders often get very excited when they have been offered high leverage for trades by their brokers. The experienced trader, however, knows that too much leverage can ruin a good trading strategy. Excessive leverage could bring in large profits, but it could also ruin your life if you have placed a bet on all your capital.

Going "all-in" in trades that are highly leveraged means that an unlucky trade will wipe out all your gains in an instant. It is therefore prudent not to use no more leverage than 10x till you are properly apprenticed in forex trading.

The final word

The Artur Hochberg advises every trader to take their time and learn the ropes before initiating large trades. Begin with the basics, and study all the meaningful material on forex trading that you can find online. Better still, find yourself a tutor or mentor willing to guide you through the highs and lows of the trade. Pay for the knowledge if you have to so that you can avoid losses as much as you possibly can.

By Travis Bard

© 2019 Copyright Travis Bard - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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