Ludvik Cizinsky
Private
- Messages
- 20
I bet many of you were offered a trading bonus: usually 10, 15, 20 even 25% of your initial investment. Some traders couldn't resist it and took the bait! Sadly, most of them later found out that the bonus, which is not really money, is just a clever ploy to get your attention and designed to accomplish the following:
1. Give you a false impression that you can afford to buy more or higher valued lots; an illusion which is going to screw up your money management, put a big dent in your account balance or entirely wipe it out.
Note: Making money on broker's bonus is a log shot. Most traders (actually about 95% of them) lose money!
2. Make the broker more money. Remember brokers never lose! That extra bonus (the illusory money) earns him more on commission (your real money) regardless of what your trading results are.
3. To squeeze out of your account as much as possible. When you finally realize that you fell in the trap and want to get out, again, it's the broker who wins! He will deduct the full bonus, keep the money you lost plus the commission you paid from your real money and on his illusory money and gives you back (if you're lucky!) much less than you hoped for. For a broker it's a win-win situation; for a trader losing proposition!
The bonus is only an illusion which, eventually, will be taken away from a trader along with his (real) hard earned money. So, don't take the bait!
1. Give you a false impression that you can afford to buy more or higher valued lots; an illusion which is going to screw up your money management, put a big dent in your account balance or entirely wipe it out.
Note: Making money on broker's bonus is a log shot. Most traders (actually about 95% of them) lose money!
2. Make the broker more money. Remember brokers never lose! That extra bonus (the illusory money) earns him more on commission (your real money) regardless of what your trading results are.
3. To squeeze out of your account as much as possible. When you finally realize that you fell in the trap and want to get out, again, it's the broker who wins! He will deduct the full bonus, keep the money you lost plus the commission you paid from your real money and on his illusory money and gives you back (if you're lucky!) much less than you hoped for. For a broker it's a win-win situation; for a trader losing proposition!
The bonus is only an illusion which, eventually, will be taken away from a trader along with his (real) hard earned money. So, don't take the bait!