Many people think that the Forex Market is a scam; Or some kind of ponzi scheme. Well … it's not. I have been able to profit from the forex market in a consistent way. Sure I have had some drawdowns, from time to time, but I have always been able to recover from them. I want you to analyze some ideas first; Before you rush into harsh concluding.
1.- 95% of the traders lose money
Imagine if you where in a party with, let's say, 100 attendants. When you gather to chat with most of them they will tell you of all the money that they've lost in the forex. Would you be inclined to think that the forex market is a scam?
That is exactly what happens with most people. Since 95% of the traders are losers it's easy to conclude that the forex market is a scam that rips-off people from their hard earned money. How many people have lost their money on the stock market? Would you consider the stock market to be a ponzi scheme? (Forget about Madoff for now).
2.- Forex ghost firms.
It's true; There are fake brokers out there. There are some firms that are not regulated and frequently disappear with the money of their clients. That does not mean that the entire forex market is a fraud. You would not blame the entire car industry if you were cheated by one dealer, would you?
When you open you account make sure your broker is regulated by a highly responsive government institution or accept the consequences; But do not blame it on the market.
3.- Funny trading systems
Since trading the forex market can be such a profitable occupation it is easy to understand why so many people think they can become rich overnight. Many system sellers take advantage of this wishful thinking and offer holy grails in bulk. When the holy grail fails who takes the blame? The market !!! That does not mean all the systems are the same, or that you can not profit in the forex market.
Here is a tip: a good system should be simple. Fake systems try to hide their flaws behind complicated patterns and indicators. They want you to believe that you failed because you did it all wrong.
The forex market is a viable option for investors seeking a good alternative. Just because 95% of the traders fail to profit that does not mean you have to be one of them (if you do it right). Find a reliable regulated broker and a good system that operates in a scientific mechanical way.
Source by Luis Garcia De Alba Diaz