Here are some of the reasons for the question above which might help you if you are in the same route to forex trading.
Commonly new traders wanting to make quick money without first having developed the skills needed for Forex trading.
The moment you decide that Forex trading is for you, you’ll have a greater probability to make successful trades in the long term, because you’ll develop the correct skills needs in forex trading
Further move on the important questions asked
Is buying and selling currencies right for you?
SO THE REASONS YOU SHOULDN’T TRADE FOREX ARE AS FOLLOWS,
1. Your Capital matters a lot.
A Man With No Money Holding Pockets Open
When not enought capital Using leverage and margin can uhelp you with little initial capital
Because the market can be volatile, there is always the risk of losing money when trading a currency pair.
Losing trades over a long period of time means that your account balance can reduce faster as posible
“In addition to the inherent risk linked to trading, with Forex trading you need to add margin trading and leverage, which means that you can invest large amounts with little initial capital”.
So, this high level of risk means that you need to be sure that you do not use money that you need to live on always trade with money you can afford to lose!
2. lacking skills or experience.
You can not lack skills and you understand what to do!
So before even considering trading, you need to know the basics of the markets, what influences them, and how trading works.
Another important aspect is that you need to have a trading strategy that suits your trading style, with strict money management and risk management rules that govern how you allocate your funds to trades.
If you have no trading experience, and you do not know how market trends and relate to each other, Forex trading might not be the right investment option for you at least not yet.
3. You can’t handle when you’re wrong.
When making trading decisions, you can be right and make money, but there is also a high probability that you’ll be wrong and lose money.
That’s fine as long as your profits are higher than your losses. Losing trades are part of the trading game you need to be prepared for this and not take it personally!
In Forex trading, you need to quickly recognize when you’re wrong, and close losing trades as early as possible. It’s important to develop your ability to accept your losses and learn from your trading experience.
But do remember, it’s OK to be wrong you can’t be right 100% of the time in every single trade you execute. And if you can’t handle losing, you won’t be able to be profitable in the long run
Make sure that you are well equipped with the knowledge of candle stick or line graph reading
4. You’re risk-averse
Fast changing market conditions, high volatility, and leverage can make Forex trading a high risk activity.
You can make huge returns in the FX market, but these kinds of returns do not come without risks, especially when using leverage.
So you must be aware that loses are to be encountered a long the run and if you can’t handle the idea of losing every dollar in your account, Forex trading is not going to fit your targeted risk!
Get your best alternative ways that can bring you success towards your forex career.