Forex Risk Disclosure and Disclaimer
Second session of Forex Training
Welcome to Forex professional training in financial markets.
In this session we will begin the training and will introduce Forex risk disclosure and disclaimer to you.
High-risk financial market, especially Forex
This job contains a high risk, as do all different aspects of financial markets. In this market, brokerage companies offering a wide range of services always inform their clients of the high risk involved in this business.
This way they can no longer be held responsible for any risk their clients take. An individual needs to be able to easily work in this business without facing significant risks.
In order to do so, he or she needs to gain the knowledge and information required for this job and utilize their personal experience and skills.
This will enable a person to climb up the ladder and keep themselves away from potential and unnecessary risks.
In this business, a party can either lose or multiply their entire bankroll in a very short period of time, possibly in less than 5 minutes.
Therefore, as you can see, it involves a very high degree of risk. When a person enters this line of work, the majority of the activities are processed by banks, financial institutions and investment funds.
These businesses have a considerable leverage, meaning they can take big risks within the market. This will be further explained in future sessions. A financial market is vast, thus any decision you make must be carefully thought through.
After a person has gained the necessary knowledge essential to this job, it is time for a step-by-step approach. They need to open a Virtual or a Demo account to use it to build upon their training and improve their skills by practicing.
It is important not to open a Real account too early on.
Opening a real account with a small bankroll
After they have improved on their knowledge and experience and reached an acceptable level of skill, it is the time to open a real account with a minimal amount.
It has been suggested that you should not bring more than 10% of your set aside non-working capital into this new account.
It is also vitally important to avoid bringing a significant amount of debt or loans from banks or any other source. In order to make a good trade, a person needs to be relaxed, focused and in total self-control.
If a person was not successful with their small trading account, they can always return to their virtual account. From here they can continue practicing until they develop the necessary skills to return to the real trading account.
Types of Traders
People who attend this business, and traders in this business, are divided into three different categories.
- The First category is estimated to be between 90-95 percent of all traders. These are the ones who lose their investments because of high risks, lack of knowledge and other issues.
- The second category, between 2-5 percent, are people who are developing their knowledge, during this time they do not make any profit or face loss with the trades they make.
- The third category, also between 2 -5 percent; are the traders who have reached the essential and acceptable level of skill meaning they can successfully make a profit.
What Type of Trader Are You?
As you can see, the majority of people are not able to make a profit in this market. If you want to develop your skills to become a professional trader, then you must not think that you are a part of those last 2-5 percent.
Only with frequent practice will you be able to progress from the first group to the second and eventually to the third.
That concludes this session, until next time and another session take care.