1. Market Investment Structure

1. Market Investment Structure
Note the scheme shown below:
Investment scheme

In the era of 70 to late 90's, they were more familiar with the lay of the real sector investments such as property and plantation sectors. However, after the monetary crisis hit our country, investors began looking for the kind of investment with huge returns in a short time and this is where the investment trend of the financial sector began to boom.

Investment real sector (eg property) generally requires substantial capital and takes a relatively long time to develop because the amount of capital, the liquidity is not as fast as the financial sector.

Take for instance when we bought a house for investment. The surplus value usually never decreases and is always increasing. But on the other hand, after a few years, you want to dilute your investment, then you should look for someone who has sufficient funds to buy your home value may have gone up tens to hundreds of percent. Looking for buyers who like this is not easy, where the liquidity problems occur.

As with the financial sector. Investment in this sector have a tendency to return more liquid and relatively larger, in proportion to the risk. Another plus is the number of investment products offered in this sector.

Then where the position Forex Trading? He is in class Money Market & Commodity Futures Exchange. Forex trading is an investment in the financial sector are classified as the high risk-high return investment. That is, the opportunity to earn huge profits even can reach hundreds of percent per month, but is offset by the possibility of large losses if not managed properly.

You need to understand the concept of high risk-high return here. Basically, any type of investment has the possibility of losing money. The amount of potential losses will be proportional to the magnitude of the potential benefits that can be obtained here. The greater the potential benefits that can be obtained here, the greater the potential losses that may arise and vice versa.

Forex comparison with other investment

If you are classified as safe investors who do not like risk or 'shocks' in your investment portfolio, it appears that forex trading is not suitable investment for you. This is because forex trading is an investment that has a very fast movement in liquidity and in price movements. Logically, forex trading can only carry you make a profit of tens to hundreds of percent in a day but it can also bring you lose the same amount.

If you are a risk taker, then forex trading is a type of investment that suits you, in a sense to earn huge profits, then he was ready to bear the potential loss of the same magnitude.

So is there a way to minimize the potential losses that exist? Of course there is! Risk management and analysis capabilities you is the key here. The better you in the running risk management and analyze the movement of market prices, the smaller the potential loss that can occur. Everything is proportional.