Is Investing in Forex Like Playing the Lottery?

People that invest in the Forex Market are the types that like to take chances. They are the ones that love roller coasters, and have always wanted to jump out of a plane with a parachute. While these people like to take chances and like living on the edge, does that mean they are willing to invest their money on something that depends solely on luck? The answer is not quite as easy as yes or no.



How Forex Is Like The Lottery


The Forex market is a very volatile entity. It depends on so many factors that change multiple times throughout the day. The economies of many countries can be doing really well in the morning, but could tank by the afternoon. Politics can have a huge impact on the worth a country’s currency, and therefore, it can increase and decrease at a moment’s notice. The weather and other natural disasters could play a huge role on a currency. If a volcano erupts, an earthquake happens, or a tidal wave occurs, the currency of the afflicted country will fall drastically. On the other hand, the emergence of a stable government in an unstable country, or a successful election for the first time in a country that was once run by a dictator can increase the worth of the currency. Betting on the worth of the currency can be like betting on the lottery, because the chance of betting incorrectly is pretty high.



How Forex Is Not Like The Lottery



What makes Forex different than the lottery is the amount of research that goes into decisions. Investors and Forex brokers use tools, such as a Forex EA, Forex Trade Copier, and Forex signals to make a good and complete Forex analysis. No matter what tools a person uses to pick their numbers in the lottery, they are no more likely to pick the wining number as my two-year-old daughter. Forex investors are able to use information in the news, and other sources of information to increase their chances of hitting it big. The market is still very hard to predict, so the chances are not as high as many stock investments might be, but it is still way higher than the chances of winning the lottery is. If you want to make an investment that will get your blood pumping, but you still want to have some control over the outcome, Forex is for you. If you just want to leave it up chance, buy a lottery ticket.

Is Investing Forex Safe?

Most people know all about investing in the stock market. They may not know exactly how to do it, or know what companies are the best to invest in, but they have heard about it. Investing in the Forex Market is not quite as familiar, and causes people a bit of anxiety when thinking about investing their own money. Once they do a little bit of research, the easy answer to this question is no. The more complicated answer is here:



What Makes Forex Not Safe

The Forex market is a very volatile market with many sharp swings up and down. There are no guarantees or sure bets, though there are stronger and more stable currencies than others. The ability to leverage your investments exists in both the stock market as well as the Forex Market, but you are able to leverage so much more in the Forex market. In some places, you can leverage up to 1:250! Compare that to 2:1 leverage in the stock market, and you can see a stark difference. This high leverage can certainly cause you to hit it big, but at the same time, you can lose everything in mere minutes. The volatility and leveraging capabilities make this a much more dangerous market to invest into.



What Makes Forex A Little Safe



Most Forex investors would not really use the word “safe” when describing the Forex Market. There are a few tools and methods that make it a safer and more lucrative bet than going to a casino or buying a lottery ticket. Good Forex brokers are backed by large banks, which is important when there are large amounts of wins and losses. There are also several ways of improving your chances by using certain told of the trade, such as Forex signals, Forex EAs, and Forex Trade Copier. Having good tools, as well as good research about the happenings in the news of the countries you plan to invest in, can greatly improve your chances in the Forex Market.



>While investing in the Forex market is definitely not “safe,” there are ways of improving your chances of success. It is very volatile, but there are more and more tools and methods being created. The market is becoming more and more “safe,” and more and more people are looking to enter into the market and to take their chances investing in foreign currency.

How to Start Investing in Forex

You may be someone who has invested money for a long time in the stock market, but that does not guarantee you are ready to trade on the Foreign Exchange Market. The Forex Market is a whole new animal when it comes to trading and investing. It is open 24 hours a day, 5 ½ days a week. Just because the newsman says that the dollar closed at such and such a price, does not mean it is actually closed. It can still be traded hours after New York closes. Most of the trading is done electronically or over the phone, rather than in some centralized location, like the New York Stock Exchange or NASDAQ. Before investing your money, follow a few steps to get you ready:



Get Educated



There are a lot of resources out there that allow you to get a full education on how to trade currency. I would start out learning the “language.” There are websites that have a Forex glossary that helps explain terms you will need to understand before getting started.



There are other websites that are just filled with amazing amounts of information. You can learn about factors that increase or decrease the value of a currency, or how politics and interest rates play a part. Websites, like Investopedia, are very valuable resources, and they will help you get the background you need to make an informed Forex Analysis before you trade.



Practice



You can go to any online Forex broker that offers a free practice account and see how you are able to fare without losing a single dime. You will learn there what deficiencies you might have in your education, and can get what you need before actually making an investment.





Find a Good Broker



Finally, look around. If you are planning to trade online, find an online Forex broker that you like the best, and feel the most comfortable with. Make sure you can understand the Forex trade copier. Once you have found what you need, determine what amount you want to start with, and begin investing. Be sure to leverage your trades, but don’t go too high, at least not right away.



Get Forex Software



Once you have gotten started and you get the hang of it, consider obtaining a Forex EA, or Expert Advisor. This is a program that helps to build your Forex Signals and helps you to invest better.