What are the pros and cons about investing in the forex market? -

From the link below: PRO: Currencies trade 90% true to the charts. So if your charts are saying the EUR/USD is going up, then you have a 90% chance of making money on a long position and the vice versa on a short position CON: There is no telling when the other 10% of the time is going to rear its head. PRO: This market reacts sharply and immediately to news. Do your due diligence on upcoming economic news events and you stand a better chance of being on the right side of the market when the news breaks. CON: On days with economic news the market swings can only be described as violent. A position can gain or loose 30 to 150 pips in a matter of two to three seconds. Either do your homework or stay offline PRO: We do provide a calendar for economic news events that enable you to get a head start on what s upcoming. CON: As we have all seen in the past, there is no way to tell when exactly the winds of change will blow. A change in political climate and or terrorist activity can dramatically change the price of any given currency at any time. PRO: A number of different stop loss tools enable you to determine what your willing to loose and how much you want to make, prior to taking a position CON: All to often, traders say quot;I want to make as much as possible and I won t loose a pennyquot;, and they trade without using stops. Just remember quot;Pigs get fat and Hogs get slaughteredquot;. Your Forex trading platform is not a slot machine. Luck is not a factor in being a successful trader. PRO: Some offer commission free trading, which means there is no cost associated with taking a position CON: There is no such thing as commission free trading. You can rest assured that those that do offer it are manipulating the spreads. That being the case, you are loosing way more than ten dollars for every lot of currency you trade PRO: You can trade currencies online from the comfort of your home or office virtually anytime of day. CON: As a forex trader you are, soley, assuring that your hardware and internet connection is sound. Hardware failures and internet outages are your responsibility. In other words, trading with a dial up connection and a pc made in 1995 is not only foolish, but your problem alone. Generally, I would say the same pros and cons as trading in any other market. You deal with the same profit/risk issues and the same dilemmas. More specific to forex is the fact that it trades 24x7. This could be a pro or con depending on how you look at it. But I really don t see any difference. The pro is that you can gain through trading. The con is that because the fee s that are typically involved, you might not end up making really profit. Plus, compared to stocks/mutual funds where you have sec documents to analyze, there is really nothing to analyze the forex market. In short, there is a lot of risk, but remember that volitatility can be good;depends on your tolerance level.