It is such a shame but unfortunately the financial industry has acquired a bad name all over the world because of one emotion – greed. Believe it or not, greed can actually be a good thing when you decide to learn forex trading. You simply want to make as much money as possible - there is nothing wrong with that. In order to do that, you need to sign up to a forex training course where you will hopefully be taught various ways to do so. However, this is where the bad side of greed is apparent. There are a number of good ways to learn FX trading out there but unfortunately, there are hundreds of forex training channels that simply give people the wrong impression of what trading is really about. This is where people who have never traded before fall into a false sense of security and get dragged in with marketing tactics that make it look so easy. To help you out slightly, below are a few examples of marketing messages pushed out into the market that you should be careful of:
1. Make thousands of pips in a day – when you learn forex trading, you should not be taught to place 20-30 orders at one time as you will most certainly put the total investment capital into the ‘risk’ zone. Instead you should be taught to place a few orders a day that have appropriate target points and earnings. Theoretically, you could make thousands of pips per day if you have 20-30 orders live at one time but you could also lose them so you should never be in a position where the risk is this high, unless you are in the same trade for months that is constantly going in your direction and has not hit your stop loss. However, that is rare.
2. Make $1000 - $2000 per day – unless you have thousands of dollars at your disposal and have been trading for a while with success, you will not be able to achieve this. When you first start to learn forex trading your risk will be small as you need to begin to know the market. This is why companies that claim they can teach you to do this always have a risk clause somewhere that sounds something like this - ‘you will place your trades at your own risk and the company does not hold any responsibility for your losses’.
3. Learn forex trading in a few days – this simply cannot be done. Trading is an art that has taken years to perfect. There is absolutely no way you can learn how to do it in a small period of time. As a guide; give yourself at least 4 weeks.
4. Work an hour a day and make thousands – this is actually possible but only if you are a professional trader and have thousands of dollars at your disposal. If you haven’t and you are risking it all, you are a gambler.
5. Learn trading secrets – the biggest forex trading secret is that there are no secrets. Trends and price movement is completely dependent on volume. That is, millions of traders around the world are trading in the same way. If you trade differently, your strategy will not work.
There is probably another few ways of spotting a scam but the point is that you need to be careful in your search. Unfortunately, there are a number of companies out there that are only interested in your money rather than your success and this is why they have given our great industry a bad name.
