Is Forex Trading a Scam?

Is Forex Trading Scam?

When it comes to money, questions will never cease. There will always be questions as to whether any trading or investment is indeed profitable. Perhaps the main reason nowadays, for most questions might have arisen from the financial crisis experienced almost a decade ago.

Moreover, trading money makes it even difficult for most folks to believe, leave alone the fact that money can be traded for money.

No one wants to lose the hard-fought money while some want to earn where they never sow-mostly known as scammers.

So, is forex trading a scam?

The Situation

With a lot of money now involved, it’s almost inevitable to write off scammers sniffing around. Forex trading is gaining popularity each passing day, and a lot of people are making profits in real-time. For instance, a lot of websites are showing how some traders are winning massively, even up to 200% returns in a short period.

However, most of them fail to inform you that those traders later blow up and fall from the top – drastically. Like any market, forex trading has high rewards, and no one can say that the auto market, for instance, is a scam.

Forex is a market that most governments, companies, banks, and simple folks use. Have you had a trip somewhere? If yes, then you have some idea that foreign currency is needed on your trip, which you buy from the local bank.

The experienced traders across the globe made around 20% a year, which is not much as most may expect.

But why is forex trading mostly considered a scam?

The answer is pretty simple – they really don’t understand it. Most individuals get into the market without knowledge or any preparation and yet expect to be millionaires in a day. However, they’re not ready to cope with the results of their actions but instead blame the market.

Remember, as Jesse Livermore once said, “the markets are never wrong – opinions often are.” The fact that a few individuals fail to make profits in forex trading doesn’t really mean the market is a scam – plenty of traders have made forex trading a profession for life.

The Reality

The reality is that most folks throw in the towel long before getting to the end of the fruits. Most blow it at the first trading, and then discouragements get the better of them and perhaps think the broker is sabotaging them.

Forex trading requires that you start smaller positions then build much more significant with time. Besides, leverage can work against you once it’s abused, but if kept under control, benefits from the longer-term trends would be inevitable.

So, forex trading is legit, but why do people give up?

The reason is the lack of being prepared, losing control of the emotions, and one fails to stick to a trading plan for a long time with the result of blaming the market.

Therefore, it’s clear to say that forex trading is arguably like any other market which only requires preparations and confidence. After a good learning session about forex trading, it can turn out to be a source of your financial freedom.