Have a step-by-step approach

Have a step-by-step approachForex market specialists polled by Wall-Street say currency trading is an attractive solution for specialists, as long as they adopt a serious and professional approach.

“We are experiencing the worst financial and economic crisis of all times. The volatility is at record highs. Speculating global opportunities requires global trading skills. Players must have the flexibility of trading in any market they want, given the fundamental of technical hypothesis they build. Forex market is one of the most attractive speculation tools, particularly due to the light trading conditions”, Mihai Nichisoiu, analyst at Vanguard told Wall-Street.

Iulian Rizea, broker at Deltastock Inc, recommends to young investors interested in Forex market not to take a “get rich quick” approach as in casinos or sport bets, but rather a professional attitude.

“In general, when a young investor is concerned on the evolution of the financial markets, it can only be admirable. When he invests, he must try staying informed, understanding the shifts of the financial markets or building a financial expertise on solid groundwork. It is very important to grasp the real economy and to be responsive to the economic reality surrounding him”, Rizea explained.

A fresh young investor who goes straight on Forex, it is a too-bold move and will probably encounter difficulties in his way.

“There are exceptions of course, but I think it is better for a ‘freshman’ to start investing in stocks, and speculations on Forex to be seen as the upper level”, Deltastock broker said.

Tips for young investors prudence, good math skills and expertise

As for the investments in international Forex markets, Mihai Nichisoiu recommends investors to consider the record-high volatility of Forex markets.

“Usually, the retail segment is generously given the possibility of Forex trading at a low margin – which means that the tolerance band becomes extremely narrowed. Risk management must be the paramount concern. Any attempt to bet on one scenario or another must rely on calculations on risk management”, the analyst explained.

On the other hand, Iulian Rizea recommends prudence and balance, expertise in financial markets and their shifts, and thorough individual research.

“It is very important to review his risk portfolio (do I afford to lose? If yes, how much? and so on) and especially a trading system. Don’t expect a one-night ‘get rich’ journey through some magical formula. However, it is very important to improve your trading system step-by-step by learning from your previous mistakes”, Deltastock broker recommends.

Young investors, attracted by Forex market

Young investors, attracted by Forex marketIulian Rizea says the majority of young investors have the ability to take higher-than-average risks.

“We have clients still in college and clients who retired. I haven’t noticed a special behavior from our young clients in this period. Usually, they are very attracted to this market and try to absorb many information and skills in currency trading”, broker stressed.

Nichisoiu highlights the lower risk aversion of young investors than other range of age. “We’ve noticed a lower risk aversion at all range of ages, it is a problem that doesn take into account the age”, he continued.

The analyst added that speculations in all international markets drew more and more young investors.

“Personally, I don’t see any major changes in their current behavior. Speculations are made on extremely short-time horizons, while risk management remains highly ignored”, Nichisoiu concluded.