Is the forex market in general a scam?

[dupiaza]

Hi,

I have been trading the forex market for a few months now and getting disillusioned.
Why is it that when you set stops they are taken out bang on the pip before the move reverses?
Why is it that comments made by the federal reserve or the Bank of England for example have the opposite effect on a market one week compared to another?
Trading short term opens you up to being fleeced by what can only be a syndicate of trading companies pooling their resources to send the markets anyway they wish and tripping the stops which they promote[in my opinion].

Is short term trading just a CON?

 

[Pharaoh]

For getting taken out to the pip before a reversal, that could be a bad broker or you could be putting you stops a little too tight while trading smaller time frames.

Run a demo on your broker and at least one other broker. Set a horizontal line on the demos where your stop is on the live account. If your live account stop gets touched, but price is well away from it on the demos (remember to take spread into account), then you may very well have a broker issue. If so, it's time to change brokers.

As for reaction to speeches, those aren't easy to gauge. If larger traders and banks are expecting a strong bullish statement, and the speaker is only moderately bullish, those statements might have a bearish effect. The only time I ever did well in trading speeches was in a trade room with the speech running live and the room moderator yelling when to buy or sell. Sadly, the last time I checked, that guy was off living in a submarine, so he's not available to call trades for speeches anymore.

So, at this point, I recommend you only trade on demo during speeches, but listen and watch market reaction. If you eventually find a predictable response, then start trading them again with minimal amount of money.

 

[dkami]

Although there are a lot of SCAM brokers out there I would use a different word for the FX market heavily manipulated is the word i would use this is why I try and pick the pairs I trade very carefully,There is a currency war going on after all!

Short term trading or scalping off small time frames is not a easy thing to do,best to start with D1 time frame and get comfortable with that before working your way down than other way round like most beginners try to do IMHO!

 

[Red Herring]

Dear Pharaoh

I am new to this system. How can I start running a demo in my broker as you have suggested above? Just tell me from where to start and does running a demo cost ?

 

[Pharaoh]

A demo should be 100% free. If any broker tells you that there is a fee, walk away. If any broker tell you that you must open a live account to get access to demo trading, walk away.

Go here:

Forex Currency Trading Broker Reviews By Forex Traders

and just start visiting broker websites. If there's an obvious demo account link on the site, you can use it. If they hide the demo link, don't waste your time hunting for it and just skip to the next broker.

 

[Red Herring]

Thanks Pharaoh

I am checking those out.

 

[dupiaza]

Thanks for responses.
Will run a demo and live account together.Good idea
I am learning fast and agree there is no point trying to set stops too close.My mistake so far has been trying to make money without understanding the need to risk losing some as well.
Beware companies that offer a particular indice at a very good spread.Why would they want to offer you 1 pip instead of 4 like the others?

 

[FringFX]

dupiaza,
have you traded demo for many months now? if not, you should. ideally, live trading should come much later, not side by side with demo (perhaps unless your live account is really tiny)

 

[Red Herring]

Hi Pharaoh

I have opened a demo account at Oanda but the practice page is not opening! It says : "the practice should begin in one or two minutes" but it never loaded! I have tried many times so far. I have allowed pop-ups from that site too but nothing worked! How can I start my Forex journey if I fail to trade using the demo first! Please help!

 

[Pharaoh]

There are hundreds of other brokers out there willing to part with free demo accounts. At this point, you can get onto live chat with Oanda to discuss the possible causes of the problem or you can move on to another broker.

For just a demo, I recommend moving on. Later, if you decide you want to consider opening a live account with Oanda, go back, try the demo again. If it fails, see how fast their tech support can fix it as part of your evaluation process.