If you are new to forex trading, you may already have doubts about getting into it or perhaps you have already started learning but haven’t made a substantial amount of money from it yet?
If you are at a stage where you are wondering whether Forex trading is legitimate or one big scam to feed the sharks or whales as they are known (institutions with big fancy buildings), then this article will address this question.
Is it a scam?
Forex trading does get a lot of bad press for the wrong reasons because unfortunately, everyone is out to make a quick buck from new traders, selling them the dream.
But is Forex Trading a scam? In my opinion, absolutely in no way is Forex trading a scam. However, there are rules that you must understand to win at the game of forex trading.
Forex Trading is a zero-sum game. This means that somebody has to win, and somebody has to lose. You are up against some fierce competition, against the sharks who know exactly how you think before you make your move. So, until you learn how the game of forex trading really works, it’s easy to trap you and take your money.
How to win at Forex
If you want to be one of the successful ones that make a lot of money as a trader, then you must do things differently to the rest who generally fail miserably.
Here are some things we want to cover to clear the air on some important questions:
- If trading is so easy and predictable, why do traders fail?
- Why do I always get stopped out of a trade only to see the market go the way I thought?
- Do the brokers stop me out on purpose?
Becoming a Forex Trader is by far the best journey you can go once you fully understand the rules of the game and can play a winning strategy within the rules. Its the way is easier than you think to make money with simple to apply trading strategies.
However, if you don’t understand the context of a trading setup and you don’t understand the probability of success, and you don’t understand your edge and don’t follow good risk and money management, and you don’t have a good trading plan, then you may as well quit before you get started. You will lose a lot of money as everybody does at the beginning.
The strategy is the simple part. You can, of course, have a much more complex strategy that can help you gain bigger returns, but the most important part is to know how to piece all the tools together just like you would when running any business.
For example, if you have a great marketing department but terrible salespeople your business shuts down. If you have a good sales team but terrible processes, then your business shuts down.
In trading, you need to understand how the markets work and you need to understand the players in the market.
Why do I get stopped out and then see the market go my way?
It’s easy to take things personally and to think that the broker has it in for you and the whole thing is just one big scam. The truth is, this is not the case.
If you are not making any money, it’s because you are entering the market at a point exactly when the institutions are doing the opposite. Ever chased a market thinking it would run away from you only to see it reverse? Ever go stopped out on a position only to see the market reverse immediately? It’s hard not to take it personally.
The solution is to educate yourself to think like an institution. You wouldn’t go into a war without the tools to win, and in trading, you shouldn’t start trading without the right knowledge and tools to give you the best chance of consistent success.
In conclusion, anyone can make a living in Forex Trading but not too many do. This is because they don’t understand how the game of Forex Trading works and they turn up to the game unprepared. Even if you have short term success, in the long term, unfortunately, you will blow up as most do.
Forex Trading is fair and is not a scam. If you want to start getting on the right path of success, then you can go ahead and register for a free introduction to the trading course (aimed to give you a foundation in trading).
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