The ‘learn to trade forex’ industry

[canulearntotrade]

I am a UK-based freelance journalist and I am writing a long investigative feature on the ‘learn to trade’ industry for one of the UK broadsheets.

I have read with interest some of the comments on this forum about companies that offer to train beginners (albeit for £2k on a 2-day course) with the skills to trade in the Forex markets.

Basically the article is: Does it work? Can anyone really learn to trade?

I’m keen to speak to people that have attended 2-day workshops organised by companies like Knowledge to Action, Investment Mastery, Tigrent, and others.

Please get in touch with me (wherever you are) and maybe we can have a quick email exchange or skype/phone chat about your experiences?

I look forward to hearing from you

David

My email is: david.c.robinson@hotmail.com

 

[Pharaoh]

I never took a live seminar, but a long time back I did go through The Insider Code by Mac X. It was a massively overpriced basic intro to forex. The CDs with the lessons were filled to less than 1/2 capacity, so make it seem like purchasers were getting more lessons based on the artificially inflated disk count.

The whole 2:1 risk/reward concept that was harped on over and over again as a way to virtually guarantee profits suffered a complete mathematical failure when coupled with "close 80% of your position at +20 pips and move SL to BE".

For example, Buy XXX/YYY at 1:0000. SL at -20 pips, TP at +40 pips. If we do this 20 times at $1 a pip and win half (not likely to happen in reality, but let's just go with the assumption), we lose $200 total on 10 trades and make $400 on 10 trades.

But, if we follow the detailed instructions, we still lose $200 on the 10 losers. The winner initially net 10* .8 * 20 = $160 and SL on the remaining portion is set to BE. If 5 of those go to SL and the other 5 go to TP, there is no additional loss (SL is at BE), but the TP only gains us 5 * 0.2 * 40 = $40. This puts us back to a 1:1 risk/reward ratio.

A narrower SL and TP results in a net loss. Widening both the SL and TP can push this back into profitability, but reduces the odds of winning 1/2 of the trades.