Have you encountered a person who thinks that Forex trading is nothing but a scam? We cannot convince all people that the Forex market is a real place for investment. This doubt can be brought by other scam investments that have been sprouting here and there. But to people who have real experience in Forex and a degree in Finance, this idea surely sounds ridiculous. Another factor that influences the minds of other people to think that Forex is a scam is the lack of understanding of the economy.
The Reality of Forex Trading
Forex is a market that is used by several companies, governments, banks, and even individual people. If you have traveled to another country, you will know the importance of foreign currency on this trip. Though you can easily buy any currency at your local bank, it is most likely that the price is not good.
Do you like buying foreign products? You can do so because the owner of the business has bought foreign currency to purchase the items that you like then sell it to you at a much higher price. Should you call that businessman a scammer then? Definitely, not.
All of us use Forex to accomplish something in our daily lives. Though Forex can be helpful to you, not all get to profit from it. So, why do other people think it’s a scam? The question gets redirected to them. Do they understand Forex? And how does it work? Maybe they don’t, the reason why they think it’s just a scam.
Not Winning A Trade Doesn’t Mean Forex is a Scam
There are even aspiring traders who get to the market without even learning about Forex first. These are the kind of trading who thinks that they can become millionaires through Forex trading in one night. They are not prepared and don’t have knowledge about trading and yet, they expect so much for themselves. Later, when they experience failures and losses, they will think that Forex is only a scam and that they lose money because of its fraudulent activities. What they don’t know is that they were only throwing money into their brokers thinking that Forex is easy money. After they failed, they blamed the market.
According to Jesse Livermore, a world-renowned Forex trader – “Markets are never wrong – opinions often are.”
The Bank for International Settlements said that there is an average of $5.1 trillion tradings of foreign currencies happening every day. There are still a lot of people who can’t successfully trade Forex. But that doesn’t mean that it is a scam because there are a lot of Forex traders who became professionals and earning money from Forex.
The key to success in Forex depends on your level of knowledge and understanding of the market. Make sure to study Forex first before entering your trades.