"While
trading is one of the best opportunities for an individual to begin
a business with little capital and initial expense, it also carries
with it a great deal of inherent risks"
The
risks of trading
Fortunate
Group is dedicated to providing sound and proven trading techniques
and support for those who wish to enter the business of trading. Most
of those who attempt to trade are thwarted by their own lack of understanding
and discipline. They have no rules and lose money trying many unproven
strategies. While trading is one of the best opportunities for an individual
to begin a business with little capital and initial expense, it also
carries with it a great deal of inherent risks.
Please be aware that the risk of loss in trading can be substantial.
You should therefore consider whether such trading is suitable for you
in light of your circumstances and financial resources.
Potential Traders should be aware:
That trading can be extremely risky. Customers
should be prepared to lose all of the funds that they use for day trading.
They should not fund their trading activities with retirement savings,
student loans, second mortgages, emergency funds, funds set aside for
purposes such as education or home ownership or funds required for current
income.
That customers should be cautious of claims of
large profits from trading.Customers need to be wary of advertisements
or other statements that emphasize the potential for large profits in
trading. Trading can also lead to large and immediate financial losses.
That trading on margin or short selling may result
in losses beyond the initial investment. When customers trade
with funds borrowed from the firm or someone else, they can lose more
than the funds originally placed at risk. A decline in the value of
the securities that are purchased may require additional funds be paid
to the firm to avoid the forced sale of those securities or other securities
in an investor's account. Short selling as part of trading strategy
also may lead to extraordinary losses, because stock may have to be
purchased at a very high price in order to cover a short position.