Forex is a scam

Discussion in 'Forex Trading' started by mounafia, Sep 4, 2009.

  1. mounafia


    After 4 years of trading the forex, I have realised that it is a scam.

    I have read it for multiples years in this forum....but I thought it was because this peoples were not successful that were complaining....and that I would manage to succeed.

    Don't get me wrong, you can win money in forex (I have win money.....) but you can not win in a long time.

    I have never seen a market that change that much from a month to an other.

    A strategy that will bring you +30% one month, will bring you -40% the months after.

    The Forex has no fucking logic. he can be volatile one day and not move a bit the day after despite being a news day.

    He can also move all day long....and the day after have 2 big moves and stay at the same place for the rest of the day (just look at the graph of the day (Eur/usd) : 2 big moves....and the rest of the day nothing).... You will tell me that you have to find the strategie that work in this fucking environment....and I will agree...but the week after, the same strategy is gonna put you on your knee.

    You will tell me that there are other parity (GBP/USD, USD/JPY, etc)...but it is the same story and the same erratic way of working.

    That is why I am closing my account.....but I am not giving up...I will open a stock and futures account in one week.

    It took me 4 years to understand that there will be a lot more choice everyday in the morning trading stocks...and that way, I will always find a stock that fit my strategy instead of the fucking forex market that fit my strategy some day and do what he want the day after.
    what I am looking for is volatility.....and if you have the choice between 1000 stocks every will be easier to find it (reading in the morning which stocks have a big news days) that just the Eur/usd (all the other parity are correled anyway)/

    actually trading the forex is like having just one stock and that your only choice is to trade it. some day it is gonna fit your strategy (volatility for me for exemple) and some other day it will not and you will lose your money without being able to trade something else.

    I now know why the big boys laugh at the forex traders....we are just dreamers....

    anyway, needed to vent after realising the scam I was in.....

    ps : english is not my first language and I did not double check so sorry for the grammatical mistake.
  2. There is a reason why the only people posting to the p/l thread trade stocks.

    For the "little guy" stocks offer you the best chance at succeeding for the reasons you mention.
  3. It's not an entire scam. It's a difficult market to trade.

    Aside from that what you said is completely true. However, Forex is NOT to be traded like a 24/7 market. The best way to trade it is to only trade during the peak hours (if you want to day-trade it).

    Trading stocks you can always find something moving. You don't get the leverage though.

    Forex isn't impossible. You need a solid edge though and some of your own special blend of artwork.
  4. mounafia


    ouch....I just read my post....and there are a lot of grammatical mistake...and I can not edit it anymore (more than 30 min)


    sorry....I usually try to write better
  5. mounafia


    I live in France and always trade during the peak hours....(during the london and New York hours)....I have never traded at night. if I had, I would be dead right now... :D

    but I agree with your analyse.

    concerning the leverage, I have never used more than leverage 8.....
  6. Ive never met a single independent successful forex trader in person

    good luck with equities
  7. speres


    To be successful in forex you need a full understanding of price action,(which is difficult enough for the majority grasp) and the games that are played......
    You could spend 10 years trying to master it and fail, it all depends on what your looking at during that 10 years....
  8. The question is "why bash your head against the wall trading forex?" Why not trade something easier?

    Well that's the point. Take the easy route. Nothing wrong with that.
  9. speres


    your right nothing wrong with taking the easy route
  10. Nobody should start out in forex. It is a brutal market, start out in stocks and proceed onwards. Forex should be the last market you touch. I started out in stocks then went to options and futures. I thought trading options was tough but the precision and emotional discipline required to trade forex at leverage beyond 30:1 is immense. If you are insane and overleverage yourself at 200:1 or 300:1 you can lose all your money in 30 seconds, literally.

    Forex does have serious advantages. Take a look at the chart of Dow Jones Industrials vs EUR/USD you will find one is more crisp lacks gaps and has a more natural flow and that would be EUR/USD. It is a lot easier to read forex charts.

    I like the near absence of the concept of "close" in the forex. For our purposes (residents of north america Eastern Time Zone) the market "closes" at 5pm and "reopens" at 5:01 pm with the exception of Saturday off and Sunday beginning at 2pm EDT (Sydney Open). Because the close is essentially superificial, there is little incentive to manipulate it. I saw stock closings being manipulated on more than one occasion.
    #10     Sep 4, 2009