Is Forex Trading a scam?
I am sure most of us have seen the fake Forex Adverts with the Ferrari and the private jets, right?
These adverts are complete bullshit!
And they do not promote the correct image of Forex Trading.
Any real Forex Trader will tell you that Forex Trading is not a scam. However, with so many scammers out there it’s difficult to convince people otherwise.
In this article, we’ll discuss some of the common misconceptions about Forex Trading. After this, it should be very clear why trading is not a scam.
Why are there so many misconceptions about Forex Trading?
The short answer is False Advertising.
Scammers and frauds love to put up all sorts of false advertising about trading. If you’ve been browsing on social media you’ll know what we mean.
It seems like almost every second advertisement on social media is about online trading.
But have you ever wondered why there are so many false advertisements about Forex Trading?
Well the answer is money of course!
Some of the scammers in the FX industry are making tons of cash by promising people to get rich quick.
The sad part is that most of these scammers are not even real Forex Traders themselves! The word that would best describe some of these people is the word Charlatan.
Now, before you ask, see the below description of what a Charlatan is…
Charlatan: ‘A person falsely claiming to have a special knowledge or skill’… (thanks google)
Now doesn’t sound familiar. It sounds like all of these fake traders trying to convince people they are the answer to their money problems.
These fraudsters try and fool people by showing pics of how they make thousands of dollars on single trades. Or, they’ll show pictures of themselves holding piles of cash…
The sad part about this is that people actually believe this nonsense…people are supposed to know better.
But there is also a very good reason why these scammers are so successful.
You see, people are always looking for a get rich quick scheme.
That is the only reason why these frauds keeps on making money.
If you are one of those people please stop hunting for that quick money schemes. If it sounds too good to be true then it normally is!
This brings us nicely to our next point.
People love the idea that Forex Trading might make them rick quick
A popular misconception about Forex Trading is that it’s a get rich quick scheme. I think majority of beginner traders start out with this wrong idea.
However, this is an absolute lie and could not be further from the truth!
Forex trading is one of the quickest ways in which people will lose money, not make money!
Did you know that most retail traders never reach consistency in their trading?
They stand a much higher chance of losing money quick as opposed to making money quick.
Let us just use common sense here for a second. If it was really possible to turn $250 into $1 million in just a few month don’t you think everybody would be doing it by now?
Don’t believe the lies that social media is spreading about trading. If you want to make money quick then Forex Trading is not the choice for you!
People think Forex Trading is like Gambling
This is very similar to the previous point, especially with regards to the psychological similarities.
The challenge with this misconception is that there are so many traders who are in fact gambling with their money.
This is especially true for people who risk big on their trading accounts in the hope of winning big. These traders might as well go the a casino and play roulette…
Sadly, it’s this mentally among many traders that have made trading synonymous with gambling. However, professional trading has nothing to do with gambling.
Professional trading has to do with numbers, not luck. Truly successful traders make use of various Fundamental and Technical Analysis methods in order to identify trading opportunities with an edge over the market.
They weigh possible trading opportunities and select the ones which has a higher probability of moving in their favor.
Thus, there is more to trading than just choosing red or black like on a roulette table.
People think Forex Trading is Easy
This is just another example of the power of social media. This is probably one of the biggest lies there is about Forex trading.
I know I sure believed this lie when I started out my trading journey. I thought it was as easy as simply pressing a button.
The idea that Forex Trading is easy has dealt considerable blows to the Forex industry.
Most beginner traders fail to understand that Forex trading is just like any other career. You don’t become successful in any other career overnight do you?
Of course not!
People who become experts in a certain career spent many years perfecting their skills. Experience is a process, and it’s a process that cannot be forced or rushed!
There are so many things that professional traders cannot teach to beginner traders. The reason is because some things need to be learnt the hard way…
It takes time and dedication and commitment to become successful in any career.
Forex trading is a challenging endeavor. There are so many things that move the markets at the same time.
Everything from Central banks, to economic news releases, to geopolitics, to equities to commodities and many more!
All of these variables plays a role in the way the market moves. Consequently, it takes time to get to know the market and understand how things work.
There is no quick way in this business. Forex trading is not easy and it will never be easy.
If it was easy, everybody would be doing it.
People think Trading Robots is the answer
Oh boy we see so many people fall for this one. Trading robots are not the answer to trading success.
We find it quite surprising that so many people get scammed out of their money with robots promising endless wealth.
No trading robot will trade consistently and successfully and profitably over time. You might have short-term success here and there but that will be luck.
The financial markets are just too complicated and intricate.
Some say the use of robots are useful as they neutralize the effect your emotions have on trading.
Even though this is true, emotions are not necessarily a bad thing in trading.
Emotions can be a great help in your trading if you know how to manage it properly. However, we will leave emotions for another article.
Trusting trading robots to trade for you can be very dangerous.
Now this doesn’t mean that trading robots are all bad. There are other more useful things robots can be used for in trading.
Many traders use robots to help them in their trade management by calculating proper positions sizing etc. For these purposes robots are excellent.
However, when it comes to actual trading, we won’t trust our own funds with trading robots.
People think they don’t need Forex training
The amount of people who are interested in Forex Trading are growing by the day.
Interestingly, majority of new traders think they’ll be able to trade successfully without getting any form of training.
A lot of beginners think they will trade successfully by just reading free stuff they find on the internet.
However, people soon realized that trading requires skills and methodologies which you will not find on the internet!
The intricate knowledge required to trade the markets successfully are not given away for free.
People who have attained success in their trading have done so after years of trial and error.
Majority of successful traders received training from someone who traded successfully themselves.
Don’t get us wrong, there are plenty of free sources on the internet which provide amazing content.
However, someone needs to show you how to put all that info to work in a structured way.
Think of Forex training as an investment in your new career. If someone is not willing to invest in Forex education then trading might not be for them.
Remember, trading is like any other professional career. If you wanted to start a any other new career you would first need to learn from other professional.
If you call an electrician to fix the wiring in your roof, would you want to use someone who only watched a few short YouTube videos?
Of course not! You would want a professional. Someone who knew what they were doing, right?
In the same way, you can learn about the basics of Forex for free on the internet. But, it won’t be enough to help you trade successfully.
However, it won’t give you the hands on skills and knowledge that you require to be consistently successful and profitable.
So, is Forex trading a scam or can someone trade the markets successfully?
Real Forex trading is not a scam. And yes, it’s possible to trade the markets successfully.
However, realizing that Forex Trading will not make you rich overnight is an important first step.
Statistics say majority of retail traders never achieve consistent success in trading. The small group that are successful have put in the time, dedication and commitment to get there.
It’s possible to trade the Forex market successfully, but it won’t happen overnight and it won’t be easy.
Don’t listen to the false advertisements that promise you instant riches, it does not work that way.
Any professional trader will tell you that trading is not as glamorous as some of the scammers want you to believe.
Most people underestimate the hard work it takes to be successful. Sometimes it means sacrificing insane amounts of time studying the markets.
Also, trading can be very lonely. Most days, it”s just you and your computer screens with the news as your only company.
Making a success in trading is possible, but make sure you are up for the challenge because it will be a bumpy ride.
So, the bottom line is that professional Forex Trading is not a scam.
From this article we hope we have cleared up some of the confusion that exists about Forex Trading.
Forex Trading can be a very lucrative business but it will not make you rich overnight.
The Forex market can be very unforgiving. Thus, a career in trading is definitely not for everyone.
The Forex industry can be very rewarding for those that are clear minded and dedicated. For those who realize that money does not grow on trees.
For those that approach their trading like a business, with time and commitment.
Unfortunately, there are many that give the industry a bad name, so please be careful with your money.
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