Recommendation by EA⑤: On the issue that the general image of FX is too negative, including a story where in high school financial literacy classes they teach not to touch FX

Good morning everyone. I’m Renmi.

This is my sixth article. It has been a while since the previous one. Yes, I’m sorry. I’ve been slacking.

Last time, I engaged in the act of writing a vent about GogoJungle’s services. I don’t regret it. If you haven’t read it yet, please use the URL below.

https://www.gogojungle.co.jp/finance/navi/articles/83081

Now, this time I’d like to think about the public image of FX being too negative, including a story about being instructed in high school finance classes not to touch FX.

“FX is dangerous” in high school classes

Recently, financial education in high schools has been attracting attention for becoming more substantial. It’s wonderful that students learn about investing in home economics classes and that basics of asset formation are taught.

However, one thing that often appears is the warning “Stay away from FX!” While stock investing, NISA, and iDeCo are presented positively, FX is often strongly denied as “dangerous,” “gambling,” or “not for beginners.”

I actually heard this from a high school acquaintance. He said the teacher told him in class, “FX? That stuff is a doorway to ruin, so stay away!”. Ruin… It sounds like a movie line, but it shows how wary teachers are.

If I had taken such classes as a high school student, I might have thought, “Is FX really that dangerous…?”

Why does FX have a bad image?

So why is FX’s image so negative in society? Here are common reasons.

1. Risk of large losses due to leverage

   FX can be traded with leverage, allowing large trades with a small amount of capital. This is a benefit, but it also means losses can be large, which leads to perceptions of danger.

2. Risk of failures in short-term trading

   Unlike stocks, FX trades 24/7, so many people trade frequently. Without a plan, they end up incurring losses.

3. Significant impact on psychology

   This isn’t unique to FX, but when you lose, emotions flare and many try to quickly recoup losses with reckless trades. Even if you’re told not to get heated, moving money can make it hard to stay calm.

4. Being swayed by the flood of information

   The FX world is an information battle. Economic indicators, news, technical analysis—there’s a lot to learn, and trading without proper understanding can turn into mere chance gambling.

But is FX really something you should never do?

Indeed, FX carries risks, but by that standard every investment has risk. Stock investments may see certain holdings plummet, and real estate investments carry the risk of heavy debt.

The issue is not that FX itself is dangerous, but that trading FX without knowledge is dangerous.

For example,

• Taking on large leverage without a plan

• Trading carelessly with a gambler’s mindset

• Holding positions without cut losses

If you take these actions, FX will indeed become a “game that dissolves money.”

With solid study, it can become a weapon

On the other hand,

• Practice proper capital management

• Trade calmly with rules

• Backtest and establish a method with an edge

If you can do these, FX can become a legitimate investment tool.

Furthermore, with automated trading (EA), you can trade according to rules without being swayed by emotions. In high school finance education, there may be discussions about discretionary trading, but topics on system trading with EAs are rarely mentioned.

Summary

• In high school finance education, FX is sometimes taught as dangerous

• Reasons include leverage risk and the difficulty of short-term trading

• However, it’s not FX itself that is dangerous, but doing it without knowledge

• With proper knowledge and risk management, FX can be a valid investment tool

The negative image of FX may come from people who cannot manage risk rather than from the nature of FX itself.

It’s good that high school finance education is advancing, but rather than labeling it as “FX is absolutely not allowed,” it would be more practical to teach “how to manage and minimize risk” for more actionable learning.

See you next time!

Renmi’s EA List

https://www.gogojungle.co.jp/users/189446/products

The following is a paid zone, but there isn’t particularly any useful content written there.All article content above. I just wanted to try the tipping feature.