There is only one forex trading secret
They are silvertongued masters of persuasion, and there’s an appetite for their wares among the hopeful, the gullible and the greedy.
❚ Forex trading is very, very risky. ❚ Salesmen make money selling to you, not by trading forex. ❚ If it sounds to good to be true, it almost certainly is.
secret algorithms telling them when to buy and sell foreign currencies at a profit.
One former forex salesman told me over a cup of tea recently that the only profits in forex trading ‘‘education’’ and software were for the salesmen.
When I asked what proportion of the clients made money over their trading careers, he lifted a hand and made a zero sign with his index finger and thumb.
I quite believed him, even though I gave less credence to his claim that he had left his wallet at home, so could I pay for the tea?
We live in a country where the prime minister made his living out of dealing in foreign exchange.
There’s a splendid Youtube clip of ‘‘uncanny’’ Key’s early years in the business.
Clearly then, people can trade in forex successfully, but the young Mr Key, as far as I can see, was trading with ‘‘other people’s money’’. Neither was he an amateur trading on alerts generated by secret algorithms he’d paid a few grand to get.
As long as I have been a money writer there have been salesmen cold-calling people at home and work to sell them forex trading training and software.
They are silver-tongued masters of persuasion, and there’s an appetite for their wares among the hopeful, the gullible and the greedy.
But given the very high risk of their clients turning their nest eggs into much smaller nest eggs, it’s crazy the whole business hasn’t been properly regulated.
I’d change the law to force the ‘‘educators’’ to get licences to sell their wares to New Zealand-based clients because their customers clearly believe they are buying a financial service.
Like financial advisers and fund managers, let the ‘‘educators’’ reveal their qualifications as educators to the Financial Markets Authority (FMA).
Let them have their criminal records examined, and the basis of their alert systems scrutinised. They could provide theFMA with the audited results of their pupils’ trading.
And, if they can’t do those things, they should sell something else, like kitchens, or used cars.
Want to be shocked? Google ‘‘Financial Markets Authority’’ and ‘‘Forex’’ and see the dire risk warnings that come up.