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Friday, July 17, 2009

Forex - The Anxiety Is Killing Me!

It's tough, isn't it? Having an investment out there and being patient enough to just let it run its course is something that is difficult for even the most seasoned of veterans-but especially so for those trading on the Forex! The Forex, or Foreign Exchange market, is where nations, investment banks, and other investors come to exchange currencies. Nearly two trillion dollars exchange hand in a given 24-hour period of trading (the market is open 24 hours per day, Sunday through Friday) making the Forex the largest and most fluid market in the world. Investors love the Forex because it is simple and has plenty of opportunity for profit thanks to its volatility.

However, while those fluctuations in exchange rates can lead to large profits-they can just as easily zero out an account! In fact, they can cause losses to mount even faster than potential profits because Forex accounts tend to be highly leveraged-as much as 100:1-or even more in some cases!

Fear, greed, even faith-all of these very basic and real human emotions play very huge roles in the decisions made by investors. The fear of loss is a very real and valuable human emotion meant to help us evade danger and survive-but it can kill you when it comes to trading on the Forex!

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