Forex Trading Scam
A huge amount of traders fall for the myths about Forex trading and this means they fall for a Forex trading scam. How do you spot the scams and find the reputable educational sites and education online. If you review all Forex info and products and use the checklist below you will find the info which can lead you to trading success.
If you see anyone saying its easy to make 200% - 1,00% plus gains per annum with a strategy or system, then be cautious. Some of the world's best traders make up to 100% but these trader are the best of the best.
There is no such thing as easy gains in Forex. Sure you might be able to make 100% plus gains but you will have to suffer periods of drawdown and work out a strategy to do it yourself you can't follow anyone else. The big problem all Forex traders have to overcome to achieve success is dealing with drawdown.
Low Drawdown to Gains
Many people sell systems and strategies which have only small drawdowns ie below 10% and the periods only last for a few days or weeks. The reality is – if you are targeting a 100% gains per annum, your drawdown at some point would be around 30% and the period of drawdown could last for a few months. The general rule is the bigger the gains you are seeing the bigger the drawdown
Automated Trading Programs
You see robots and Expert Advisors claiming you can make big gains with low drawdown and make no effort all you do is follow the automated buy and sell signals generated by the system but there all lying. If a automated system could make just 20% per annum with a 10% drawdown it would be worth several hundred million dollars to a Hedge Fund who would definitely buy it not just a few hundred dollars. Never buy any of these get rich quick automated trading systems there all scams.
Markets Move to Science
The other big myth is markets move to science so you can predict where Forex prices go in advance – this cannot be true as humans make up the market and you will never ever predict human behaviour with a mathematical model. The idea is ridiculous on obviously not based on face so ingnore anyone who claims you can accuratly predict the future by studying the past. Forex trading is a game of odds and probabilities but you can trade for profit with a method with an edge and
Day Trading & Scalping
Most traders want big gains with small drawdown and to make a steady income which has seen a huge amount of vendors promote day trading strategies and systems which appeal to greed and naivety. In terms of day trading and scalping, any move within minutes, hours or a day
Forex Trading Scams Beware
There are many scam products out there and also people giving Forex education which is based on myths rather than facts. At learncurrencytradingonline.com, we tell you Forex trading as it really is and how to make money trading the markets. We have been teaching people to trade Forex since 1997 and if you go to the home page at http://www.learncurrencytradingoline.com
I you look at the video tutorials you will find out what it takes to win at Forex. You can win at Forex but to do so you need to get the right information training and education and avoid the scam products.