How wrong is the way we discover forex?

LoRio

Sergeant
Messages
479
Most of us can admit it.
Yeap , we were cruising along the web one day , after a break up , and stumbled across an ad page talking big money and little time.
We said to ourselves , im gonna show that b***h ... no im kidding.
We convinced ourselves that theres a fortune to be made here in just 3 weeks.But lets look further.
So then we google forex trading , we go to babypips.com learn all the basics within 2 hours.
But then , we read "Choose your broker carefully" , "Bucketshops" etc...
So there we are in google again , clicking forex peace army on the results.
And we find this pool of complaints , we get scared , and also tired of reading.
-"I need to make this as fast as possible before they scam me " is the thought we close the day with.
So the next afternoon , when we wake up and its a Saturday, we look for a high leverage broker , with more that 2 stars in FPA reviews.
Our idea of trading is this (and i believe several complaint threads here prove it):
"I will be a millionaire , or someone will scam me!"

No offence to those who posted Complaints , some are valid and should be there to alert fellow traders.

What do you guys/ladies think?
 

Pharaoh

Colonel
Messages
19,831
Sadly, I agree. A large percent of complaints have to do with things like:

1. All my trades suddenly closed in loss. (Didn't understand that leverage is not infinite and got margin call.)
2. The broker ran my stops over the weekend. (There was a huge gap opening over the weekend.)
3. Wide spreads took out my stops. (Around the time of a major news release.)
4. Wide spreads gave me a margin call. (Around the time of a major news release.)
5. Who says my 15 family members and 12 roommates can't all sign up under my IB link and get a bonus? (Does anyone ever read bonus terms and IB terms before signing up?)

Still, there are a lot of very valid complaints. There are plenty of bucketshops out there ready to steal profits and even initial deposits from traders. There are others trying to invent new ways to scam every day.
 

LoRio

Sergeant
Messages
479
It doesnt stop there.It extends to Ea's as well.
"it worked on Strategy tester"
"the trades did not open at the right time"
 

Pharaoh

Colonel
Messages
19,831
And there are also the EA and signals subscribers who see it work and then ramp up the risk to increase profits. Then they are shocked that losses are also magnified. Some of them turn around and blame the EA or signals service.

People need to test anything new on demo, then on small live accounts trading the minimum amount. Any change in risk/increase in lot size needs to be phased in very very slowly. Sure, profits will come more slowly, but so will losses.
 

alanrox

Corporal
Messages
177
Most of us can admit it.
Yeap , we were cruising along the web one day , after a break up , and stumbled across an ad page talking big money and little time.
We said to ourselves , im gonna show that b***h ... no im kidding.
We convinced ourselves that theres a fortune to be made here in just 3 weeks.But lets look further.
So then we google forex trading , we go to babypips.com learn all the basics within 2 hours.
But then , we read "Choose your broker carefully" , "Bucketshops" etc...
So there we are in google again , clicking forex peace army on the results.
And we find this pool of complaints , we get scared , and also tired of reading.
-"I need to make this as fast as possible before they scam me " is the thought we close the day with.
So the next afternoon , when we wake up and its a Saturday, we look for a high leverage broker , with more that 2 stars in FPA reviews.
Our idea of trading is this (and i believe several complaint threads here prove it):
"I will be a millionaire , or someone will scam me!"

No offence to those who posted Complaints , some are valid and should be there to alert fellow traders.

What do you guys/ladies think?
Agree

This is a very common thing for each and every trader. We should be prepared ourselves to face such kind of things specially when we are trading forex.


Complaints, Complanits what to do ? Better we trade carefully
 

LoRio

Sergeant
Messages
479
Agree

This is a very common thing for each and every trader. We should be prepared ourselves to face such kind of things specially when we are trading forex.


Complaints, Complanits what to do ? Better we trade carefully
i remember the day i devised the "perfect trading plan" -it was about a month after i entered the world of forex- .I should have called it the "Naiveness"
it went like this :
1.high leverage broker
2.small initial deposit
3.trading the maximum possible lot
So i registered with a 1:500 account , 20 dollars , micro account .
i had calculated that every 25 pips i would double my funds.
so in my mind it was like this.
Trade 1: 40$
Trade 2: 80$
Trade 3:160$
Trade 4:320$
and so on.Still laughing.
We do that dont we?
We imagine the pace our account is going to grow but never even touch the issues of strategy or education(or news).
 

Rambo35

Corporal
Messages
280
All of those things go back to lack of education. Most don't bother to take the time to learn how to trade and fall victim to terrible marketing which states no experience needed. They they dabble in demo accounts and think they learn how to trade and once they go live they go boom and bust. Others follow robots and EA's and think they are the holy grail. Sometimes it is nothing more than the stupidity of people in my opinion.
 

Pharaoh

Colonel
Messages
19,831
Lack of education, laziness, and greed. Then blame everyone else when something goes wrong.

Yes, a broker can rip you off, but even the worst scam broker out there will be happy to watch you get a perfectly legitimate margin call all by yourself.

Even a 100% honest, super-high speed ECN feed tied to the 10 largest central banks in the world will have slippage and spread widening around major news releases.

Even an incredibly well written EA or truly exemplary signals service will quickly destroy your account if you mess with the risk settings to try to make money too fast.


This lack of forethought also leads to many people doing the equivalent of covering themselves in BBQ sauce and jumping into a cage full of hungry lions. Most people put more research into buying a TV, a refrigerator, or a car than they put into selecting a broker or choosing other forex products and services. Scammers love this.
 

itkraze

Private, 1st Class
Messages
200
I was in online business bofore forex trading and I already know a lot of scams that are present online so after entering the forex world I did saw the potential of earning but I never paid anyone or buy any crap holy grail from anyone because of my previous online experience.
 

jim.max

Private
Messages
11
There are lots of scams in forex and the best way to find is by visiting various site and read the reviews about them.Before you start the real trading always try it out with virtual trading and see how knowledgeable you are.
 
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