During the 1970s until the late 90 's, they are more familiar with the lay sector investment such as real estate and property sectors. But after the monetary crisis befell our country, investors start looking for these types of investments with large return within a short period and this is the trend of the financial sector investment started to boom.
Real sector investment (property for example) generally requires a large capital and takes a relatively long time to develop because of the magnitude of the capital thus liquidity is not as fast as the financial sector.
Take the example of when we are buying a House for investment. The extended value is usually never decreases and is always increasing. But on the other hand, after a few years, you want to withdraw your investment, then you need to find someone who has enough funds to buy a House whose value You might have gone up in tens to hundreds of percent. Looking for buyers who like this is not easy, this liquidity problems occur.
Another case with the financial sector. Investments in this sector have a tendency more liquid and return to the relatively larger, proportional to the risk. Another plus was the large number of investment products offered in this sector.
Where the position of Forex Trading? He is in the money market Futures Commodity Exchange &. Forex trading is an investment in the financial sector which belongs to the most high risk-high return investment. That is, the opportunity to earn huge profits even can reach hundreds of per cent per month but is offset by the likelihood of heavy losses if not managed properly.
You need to understand the concept of high risk-high return here. Basically, all types of investment have likely losers. The magnitude of the potential loss will be proportional to the magnitude of the potential gains we can get here. The greater the potential gains that can be obtained here, then the greater the potential losses which can also arise and vice versa.
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Thanks for give comment.