Forex trading is a very profitable and lucrative investment option. But it is also a very risky investment alternative. For people who do not exactly know what they are doing, the advantages of investing in currency trading may lure many individuals to invest their hard-earned money on forex trading, only to find out eventually that things are not as simple and easy as they have thought it to be. While it is true that forex trading can give an investor huge amounts of profits in a short span of time, there are accompanying risks involved. As any investor would know, high yielding investment alternative normally carry with them a corresponding high amount of risk involved. And forex trading is no different.