Forex comes from Foreign Exchange. In forex trading, you can trade on currency exchanges and many other things. Over $5 trillion are traded each day in forex trading.
In forex trading, you buy something or sell it. For example, you are trading in the EUR/USD exchange, and then you can either buy EUR or sell EUR. The difference between the currency rates at different times (usually in points) will bring you profit or loss. You can also buy or sell Gold, Oil, and many other products through your forex trading account.
Many traders make a considerable sum of money through forex trading, but many have lost money. There are two main reasons for being scammed or losing money anywhere around the world.
- Lack of knowledge
- The greed of tremendous results
Lack of Knowledge:
When people hear about online trading, they suppose to make money as others are doing. They can, but there is always an exact pattern to achieve anything in life. You can’t break the rules.
But people don’t understand it.
For example, someone told you about forex trading, he has an app, and he has invested some money, trades on oil, and makes money. He sometimes buys and sells and generates profits from it.
You got excited, downloaded an app, invested some dollars in your forex account, and then started trading. But suddenly you have found that the whole money got vanished in a day. Or you quit while you were losing; in both cases, you are in loss. Even you can make a bit of profit sometimes, but ultimately you will be in loss.
What’s the reason?
You didn’t think of enrolling in any courses where you could get training and learn forex trading because you haven’t learned it. You even don’t know which thing has an impact on a currency you’re buying. You don’t keep an eye on that country’s current situation or even the region where that country is located.
You even don’t know all these things matter.
Then how can you expect to generate profits? You can’t. So the only solution to making profits anywhere around the world is to reduce your risks.
Robert Kiyosaki has said that once you reduce your loss risks by learning it, you are better controlled and confident to make money.
The greed of tremendous results
Most of the time, only beginners are scammed. No expert could lose grip on what they learned. He already knows what can influence the market, how much profit can be made, and what kinds of losses he can suffer.
As the beginners don’t know anything, they are told that they will get up to 4000% profit within a few hours within a few days once scammers trap them.
Once I met a scammer, he said that he would bring me ten times profit within two days. Although, I was trying to see what do they do. The amazing thing from the story I learned was they would ask you to start trading with quite a little money that you could afford. They might also ask you how much can you afford? In that way, they don’t let you go.
Well, with presenting tremendous results and sometimes some fraud brokers will inquire for a very little commission, that will inspire you to invest with him. All such techniques are traps to scam you. So whenever you are told that you will get massive results in hours or days, or someone claims to be a broker who works at relatively low commissions, be careful before proceeding.
How to avoid it?
First of all, let me teach you what you should do when you are scammed in forex trading. It’s essential to take a few steps so that you could recover your money back or at least could help others to avoid that broker.
First of all, you must know that you don’t do it yourself on your behalf in forex trading. But you have a broker who also takes a commission on profits. But you must understand that once you invested, your investments aren’t in your control. It’s in your broker’s control
The saddest part is that the broker can be a fraud or fake broker who can scam your money. So if you’re scammed, then it’s best to report that broker on cftc and report to the police.
They might not recover your investments but will take some action that they could. But the money was high that you couldn’t forget, then it’s better to reach a well-reputed recovery expert that can help you in your forex scam recovery.
Secondly, it’s never a great habit to start trading without learning it. It’s worth investing in learning forex trading. If you’re serious about forex trading, then forget to get profits without understanding it. You can never do that.
The other thing, no one else would ever get you profits, so it’s always better to do it yourself. Please spend some time reading it, learning it, and then doing it.