I have heard people talking about Forex Trading and saying a lot of bad things about it over the past few months and it does have its good and bad things but I just wanted to clear their air on where I stand. I have been trading for about 1 ½ years at the time I am writing this and I will come back from time to time to update this article with any further questions you guys ask.
Is Forex Trading A Pyramid Scheme? No not at all. Forex in and of itself is not a pyramid scheme as you have complete control over hitting that buy and sell button and closing out a trade however you like. You can also analyze a trades however you like so you have complete control over each trade you decide to take.
Now having said that there are schemes out there that you can be scammed by. If you see anything that says we can make you a fortune quickly while you sit there and do nothing you should be running the opposite way anyway. But this seems to happen in Forex and even Crypto currencies lately where I see either facebook ads or websites stating basically hey just give us your money and we will make money for you. If it was that easy everybody would be doing it and making a fortune themselves.
This is not the case you can get into forex where you learn a strategy demo and become successful in a hurry. However that is not always the case a lot of time the head game is what needs most of the work. I will be diving into this on future articles as I am always working and trying to improve my head game both for trading and just for life in general.
Even with brokers though you need to do your research and I would always demo first with any broker and also maybe make a small deposit and withdrawal to make sure it is up to snuff for you. We have an article on brokers that myself and other use but always use caution as that is where some of the scheming has come from in the past. Because when you lose money they make more money.
There are people who sell signals, software, indicators, educational systems, etc. When you look at this make sure you do your research, look for reviews, and also see if there is some kind of guarantee to get your money back or maybe even a free trial. You really shouldn’t look to purchase anything up front with so much information out there.
If I was starting over I would look for a free strategy, sign up for a demo account with a broker or two. Trade for a few weeks or month to see if I can make money then look to join a community or actual paid educational platform. You aren’t going to be a successful trader overnight or maybe you will be but can you make this into a long-term opportunity that is the biggest question. The way you make this less like gambling and more like winning 8 to 9 out of 10 trades on average is continually learning and getting your VOT (Volume Of Trades) in.
So again forex is not a pyramid scheme it is just the people around it that can create schemes.
Is Forex Trading Profitable?
Yes it is but how profitable is always the question I get. That really boils down to the strategy you prefer and more importantly the size of the stop loss you use.
Your Stop Loss is your profit regulator and will always preach that since that is the most important item I have learned in forex so far. If I use a 100 pip Stop Loss and go 100 pips in profit that is great but would if you used a 10 pip Stop Loss for a more precise entry? That would then be 10 times the profit in that same 100 pip trade.
Now I know what you are thinking why would anybody then use a 100 pip Stop Loss vs a 10 pip Stop Loss then? Well that is the difference between old and new paradigm trading. Neither one is wrong or right it just depends on what you want to do.
Being completely honest I trade both ways. Why would I do this? Well it depends on the time I can get on the charts vs spending time with my daughter, wife and family. I don’t want to spend every waking hour on the charts. I use systems and specific strategies for those longer term (larger Stop Loss) trades vs new paradigm trades which take a long time to get down.
So you can make money while you learn new paradigm trading. I go into more detail on new paradigm trading in other others and sections of this website.
Is Forex A Legitimate Business?
It can be you just need to take your time and don’t get greedy. If you are in this for the long haul what is the rush.
- Learn a strategy
- Demo it
- Get great at it
- Add your own style to it
- Go live
- Become consistent
Then learn another strategy or go into new paradigm trading.
Is It Legal To Trade Forex?
Yes of course Forex is legal in most every country I have heard of and even in the U.S. Look at your local laws first but Forex is a worldwide market so it should be available where you are.
How Do You Trade Forex?
This is a very broad question. However I will answer it simply. You literally hit buy/sell with a stop loss through a broker and close your trade when it is in profit. Is it that easy not quite but the more you dig into it and demo it will become much easier. As always make sure you are working on your head game by reading or listening to books.
Is iMarketslive A Pyramid Scheme?
I get this question and answer this question a lot so I will have a longer article going into this. Yes I am a member of iMarketslive aka IML. They are an MLM program so people can make money for promoting it and having people like you sign up and pay the monthly subscription. The more people you have signed up underneath you the more money you make from IML.
But if you can make money with Forex why use IML?
For many reasons which I will list some here quickly here:
- IML has 80%+ of their customers are just customers who don’t promote the product.
- Their educators have many years of trading behind them and literally do just want to help people but why not make money along the way
- I follow personally Steve Gregor (New Paradigm Guru) who has been trading for over 15 years as of the writing of this article. He is one of the main reasons I joined and have stayed with IML
- There are over 100 hours of education and live sessions every week
The number one reason I would join IML (EVENTUALLY) if I was you is because they have a 7 day free trial at the time of this writing. Why do I say eventually? Well earlier I had mentioned that I would look for a free simple strategy that you like and demo that for a while. See if you like forex first before joining a paid educational platform.