A lot of people have a specific reaction when they hear about Forex trading: they shake their heads from side to side (as if they feel for you) and basically say that this is a get rich scam that will suck your money right out of your wallet or bank account.
Some people say that Forex is as scammy as MLM or pyramid schemes. Others say it’s more like gambling or that it’s just a way for big financial sharks to take the hard earned money of little people.
Is this true? Is Forex trading a scam?
The answer is yes…
… and no.
Yes, there are many scams in Forex. From shady brokers who can’t be trusted, through incompetent account managers, and useless signal providers, to insanely risky tradin robots which are promoted as a gold mine and end up as destructive as a land mine.
For some traders, Forex is just like a casino. It’s a game of chance and they trade by hunches and thrive on luck or lose on a lack of it. And yes, the big and experienced traders like nothing more than to take the money of smaller, less experienced traders. It’s the nature of the game.
However, for many small traders, Forex is not a scam. It’s a true way to make an extra income to supplement their job or even replace it.
The difference is that these traders invest in high quality Forex education, learn the fundamentals, know how to protect their money, and never trade by hunches. These traders work with a solid trading system which they know how to operate without question, they use simple methods, don’t allow their emotions to destory their results, and make Forex trading into a personal business. It is these traders which have a chance to succeed, even if they’re small.
It all comes down to trading correctly with a system, applying risk managment guidelines, and being ready to look at Forex as a long term business venture.
You can succeed in Forex, but you have to take it seriously. And as for those people who try to get you down, use them as motivation to succeed.
