{"id":14562,"date":"2021-03-01T07:24:58","date_gmt":"2021-03-01T07:24:58","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=14562"},"modified":"2021-03-01T07:29:10","modified_gmt":"2021-03-01T07:29:10","slug":"why-is-forex-trading-hated-by-so-many-people","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/why-is-forex-trading-hated-by-so-many-people\/","title":{"rendered":"Why is Forex Trading HATED by so Many people?"},"content":{"rendered":"
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Forex trading is, for some, the main source of income \u2013 even though the knowledge to trade Forex wasn\u2019t easy to attain. For others, on the other hand, Forex trading is something they completely despise, hate, and will never get tangled with.\u00a0<\/span><\/p>\n But why this immense hate? Is it because they lost a lot of money trading Forex?<\/span><\/p>\n Well, in most cases, that\u2019s the exact answer. Some believe that trading Forex is an extremely easy way to get rich and, instead, end up losing all of the funds they invested. However, this is not the only reason!<\/span><\/p>\n Let\u2019s take a closer look at why Forex trading is hated by so many people around the world!<\/span><\/p>\n Naturally, the first (and best) reason why so many people hate <\/span>Forex trading<\/span><\/a> is its very steep learning curve. Why does this make people so angry?<\/span><\/p>\n Well, it\u2019s because they realize they have no chance of making money and getting rich without studying the market, learning patterns, and so on. Most of them believe that Forex trading implies just the purchase and selling of various currency and such. On top of that, they think that watching the status of certain currency pairs is enough to predict when they\u2019ll grow or not.\u00a0<\/span><\/p>\n Obviously, Forex trading is much more complicated than that. One might be lucky, buy a couple thousand of Japanese Yen, wait for the currency to grow, and then sell it for 30%-40% profit \u2013 but this is only 10% of what Forex trading actually means.\u00a0<\/span><\/p>\n You\u2019ve probably heard this excuse\/reason as well while talking with your friends about Forex trading! The issue is that most of them believe in guaranteed returns or, even worse, minimal losses. Of course, this is because they think <\/span>trading and investing<\/span><\/a> are the same thing and that, ultimately, they\u2019ll not lose all the money they attempt to trade.<\/span><\/p>\n The vice versa applies as well. Some think that purchasing a foreign currency is an investment and will wait for it to grow and get disappointed when they find out that their so-called investment has lots its value overnight.\u00a0<\/span><\/p>\n In short, their premise for starting Forex trading is wrong and, when they eventually get disappointed, they blame it on the system and not on their lack of knowledge.<\/span><\/p>\n Now let\u2019s take a look at one of the more serious reasons! So many people hate Forex trading because it is one of the most speculative markets out there. Because of this, investors and traders prefer putting their money on low-risk investments rather than on Forex trading.<\/span><\/p>\n At the same time, people who were unsuccessful in Forex trading end up hating the system because of the select few that are able to become rich thanks to foreign currency trading.\u00a0<\/span><\/p>\n Overall, due to it being a speculative market, people end up despising it for making so many others believe that it can be a safe way to make a lot of money\/profit. Keep in mind that speculation is not the same as volatility. Whereas volatility may cause values to return to their initial point, speculation requires more precise decisions when buying or selling currency.<\/span><\/p>\n When it comes to Forex trading, you need quite the capital to be able to start trading professionally and make a decent income out of it. It goes without saying that a $100 investment will never bring you back four-figure sums, to say the least.<\/span><\/p>\n In the best-case scenario, the most you\u2019d get out of a $100 investment would be roughly $50, if the market is kind to you on that particular day. Naturally, this is scalable – $1000 makes a $500 profit, while $10,000 can round up a $5k profit in a single day. But this requires sizeable starting capital which many people don\u2019t have.<\/span><\/p>\n This is why they hate the market. In order to make a decent profit and still start with only $100, they have to trade Forex very carefully for around six months, until they <\/span>build<\/span><\/a> a portfolio and decent capital.<\/span><\/p>\n In the end, it all rounds up to the lack of patience of those interested in Forex trading. Professional traders out there have portfolios that they\u2019ve built in five or more years and, in most cases, they\u2019re barely scratching the surface of decent profit.<\/span><\/p>\n Therefore, it goes without saying why a beginner trader with $1,000 in their pocket will quit trading and start hating it once their capital goes down the drain in a couple of (bad) trades.\u00a0<\/span><\/p>\n This is also the reason why Forex trading has such a bad reputation. When beginners can\u2019t make money by directly trading Forex, they end up engaging in schemes and scams targeting other potential traders. Ultimately, many of those that would like to try Forex trading start hating it long before they access a trading platform!<\/span><\/p>\nSteep Learning Curve<\/b><\/h2>\n
They Confuse Trading with Investing<\/b><\/h2>\n
Highly-Speculative Market<\/b><\/h2>\n
Too Much Money Needed to Make Sizeable Profit<\/b><\/h2>\n
Lack of Patience<\/b><\/h2>\n
The Bottom Line<\/b><\/h2>\n