The Risks of Currency Day Trading
The risks of currency day trading are extremely high and should not be taken unless the money can be lost without major consequence. Learn more about the risks of betting on the rise and fall of foreign currency with information from an insurance and financial adviser in this free video on currency trading.
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My name is Bill Rae. I'm with Alumni Financial Services. I've been in the finance and the business world for well over 20 years. And today, the topic is the risk of currency day trading -- what are they? Well, first of all, let's quickly cover currency trading. In its simplest explanation, currency trading is basically betting that the currency of one country against another will rise or fall. Is the U.S. dollar stronger than the Euro? Is the Euro stronger than the Canadian? Will the yen rise or fall? A lot of factors come into play here, such as wars, the economies of these countries. So many things come into play. This is a 24-hour a day game. They go floating through the time zone, mind you, but currency is always on the move. It is a high risk game. Make no mistake about it. Now, there are folks out there who are licensed and can help you through understanding and getting involved if you want to do day trading. Again, the question is: What are the risks? Well, the risks, like any other high risk and high reward investments or games, if you will, is you could lose it all. So before you get involved, know what it is you're doing. Seek good, sound advice. Talk to your financial adviser. Talk to your accountant. Is your basics in your finance together? Is your business solid? Do you have enough money to weather any storm? Any money in currency, as far as I'm concerned, should be speculative money or money you're willing to lose it all. If not, don't play it.