Trading Currencies Risk

Why is forex trading often said to be high risk?
I am always reading how wild the forex market is and how most trading forex never profit and stop trading forex. I am looking at various charts for usd to yen or usd to euro for instance and it doesn’t look all that volatile compared to many small cap stocks.. am i missing something? When a currency dips it usually looks to be around a %5 – %10 draw back, I wouldn’t call that very high risk.
Do most people trade forex with margin accounts? From my understanding w/ trading stocks – margin can allow you to double your return or loss, is there typically more leverage allowed for forex traders?
depends on the amount of leverage you use, forex you can lose your entire amount if you havent a clue on what your doing in the blink of a eye , takes a good 3 – 6 months practice before anyone should attempt trading forex
Daily Video Recap (12/10/09): Risk Appetite Apparent in Commodity Currencies
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Tagged with: currencies, • education • finance • forex • stock
Filed under: Trading Forex
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