Forex Trading Traps

I wish I was reading this a couple of years ago!!
It would have saved me a lot of money!
Well it might not be a lot of money to the guys who sold me their Forex trading systems, but it was to me. I spent thousands of my hard earned and saved dollars on Forex systems that promised big results, yet did not deliver for me.
Don’t get me wrong, some of the Forex systems work; I actually talked to people who did get results from the programs.
Unfortunately I was one of them!
Yes you read it correctly I made money in my first week of trading!
In Forex you basically trade long term or short term, I was doing the short term trading (a day or less).
Yes I made good money thousands of dollars, boy was I excited I was wondering how long had this been going on. Forget the 9 to 5 job that just gets you by, that pays the bills but you don’t have anything left over to live on. I was going to make a killing, retire, work a few hours a day and live the good life!
Everything was great for a couple of weeks then I lost on a few trades, no big deal I will get it back on the next one. Because I had made good money for a couple of weeks I "knew I would get it back".
Then I began to learn what really goes on in the Forex world.
Swimming in shark infested water would be safer than playing with these guys.
Sometimes little bites, then big bites that almost break you in two, yes sir these guys know how to get at you.
The market would be heading steadily in one direction then all of a sudden reverse and take my position out; you guessed it I would lose money. The weird thing about it was that when I did not set my stop loss it hardly happened to me. (The problem with putting a trade on without a stop loss is that you have to watch the trade all the time in case the market makes a big move against you, very dangerous.)
What was going on?
Ok there is a lesson here, the Forex broker was playing games with me he would manipulate the price to stop out my position and take my money! I found that one out too late, but you need to take note there are a lot of crooks out there in the Forex World. These guys know every trick in the book and they have been doing this for years. I started a demo account with another broker and compared the price movements and that’s how I found out that my broker was playing games.
Once I knew their tactics I could change brokers and see if the next one did the same or not put a stop loss on and spend all day in front of the computer. Well I still had to work and pay the bills so that was not going to work for me and frankly I did not have a lot of money left in the account to work with.
What I needed and it is what you need!!!
An honest broker that is happy earning their money from the spread they get for each trade, their commission if you like.
An honest broker that is happy earning their money from the spread they get for each trade, their commission if you like.
A system that get better than 50% winners and takes the emotion out of the trading!
The real cheap ones could get a 50% or better winning trade result but only in certain market conditions. If the market was not working the way they assumed I would lose (I was only using demo accounts for these, I have learnt a little bit since I started trading Forex) and all the gains made would disappear.
The systems that cost a lot more where complicated you had heaps of setting that you had to adjust depending on things like, time of day, market trends- steady market volatile market, the currency pair that you were trading etc etc.