You will lose all your money in Forex trading!

Forex trading has become popular in the last five years, with hundreds of brokers chipping into the Forex market that had been ignored for a long time. This increase in brokers comes from the ever-increasing number of Forex traders, especially in Africa and Asia. The surge in the number of traders has been precipitated by the massive advertisements brokers are making in mainstream media and the success stories being stipulated by Youtubers, who claim they have made millions out of the trade. For instance, in Africa, Forex gurus like Ref Wayne and Sendile Shezi have made many people dump their savings into Forex, where they usually lose the whole amount. One thing is clear, you’re are likely to lose your money in Forex trading rather than get rich through it.
I know the bottom line outlined above attracts a lot of criticism from ‘successful traders’ and brokers, but that’s the hard truth, and there are facts to back it. First and foremost, you won’t be rich through Forex trading because the broker wants you to blow your account. Research indicates that 90% of Forex traders lose their money, and sometimes the broker is to blame. Most brokers in the market are not genuine; they have devised ways of stealing or rather taking money from clients. Some of the unscrupulous ways brokers make away with clients’ money are greedy price-fixing, trading against clients, and making you participate in trading competitions for you to make irrational trades.
The other reason you’re likely to lose all your money in Forex trading is Forex trading’s tricky nature. The movement of trends and prices of currencies and indices is hugely determined by luck, events, and market movements. Even though proper analysis of candlesticks, graphs, and keeping up with the news can help you make the right decision, it’s hard to understand the trade concepts. Many traders plunge into live accounts within a month of using the demo account and pressure from brokers. For an individual to master the art of reading candlesticks, price action analysis, fundamental analysis, technical analysis, associating market movements to events, and applying tools such as the alligator and Fibonacci retracements in their trading, there’s a need for proper training and at least three months demo trading. Many traders don’t have all this time, and there is hardly anyone to take them through concrete forex training, and hence they are likely to blow their accounts the instant they join forex trading.
Furthermore, you’re likely to lose your money in forex trading is because most traders, especially beginners, are greedy. Trading psychology is a fundamental phenomenon in forex trading. Forex trading is not a get rich quick scheme but rather a lifetime investment. Most of the traders join the business after watching the success story of Warren Buffet and Sandile Shezi on YouTube or learning of how their relative or former classmates is closing trades with profits of $500 every day. Many of them invest their life savings and quit their jobs to become traders with many expectations. These expectations drive them to use huge lot sizes or overtrading, which ends up confusing them and pushing them to make irrational trades, which culminate in their accounts, reading $0.00 in just a few days.
Also, you’re likely to lose your money in forex trading because your capital is small. Many videos and articles are explaining how you can grow a $10 account to $1000 in a short time. Having spoken to several experienced and successful traders, there’s a general consensus that the minimum amount of capital required to begin trading should be at least $250. Having a huge amount of money in your trading account reduces the chances of an individual getting that dreaded margin call. A substantial amount of money in the account also allows an individual to make more trades even when the leverage is high. Most of the brokers in the market today place huge amounts of leverage on currency pairs that are highly volatile so as to limit individuals with little capital from growing their accounts. Lack of access to these currencies means you will be trading in currencies that aren’t marketable, miss on opportunities to grow the account, and increase your chances of blowing your small account.
From the reasons outlined above, it’s quite clear that making money in forex is hard, and there’s a likelihood you shall enrich another individual in the market rather than yourself. Forex is not a get rich quick scheme as you think, even though Ref Wayne and Sandile Shezi tell you it is. Please do not quit your job or dump your hard-earned savings into this scheme because you’re likely to lose it. Don’t get me wrong. There are a few people out there who have made it in forex trading, but the bigger lot ends up being broke out of it, especially if they run short in any of the things explained above. Do not join forex trading with a cunning broker, don’t plunge your money into forex if you haven’t gone through forex trading training by an experienced trading coach or traded on demo successfully for three months. It would help if you had a trading plan and strategy that works.
Furthermore, put your greediness at bay when you join forex trading; be satisfied with making $10 a day in the first few months, and don’t make more than three trades a day to avoid making bad trades. Ref Wayne himself, the forex millionaire from South Africa, makes only three trades a day, and hence who are you? Take time to prepare before joining forex trading, and this includes joining with a substantial amount of money. That said and done, the hard truth remains; you’re likely to lose all your money in forex trading rather than be rich out of it.

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