Forex trading usually requires a broker for retail accounts and here are 3 things that your forex broker doesn’t want you to know.
Leverage
You see forex brokers offering leverage like nobody’s business. The highest i saw was 1 to 400. Seriously, if anyone goes with the broker that offers the highest leverage, you’re better of parking your money in the bank.
Assuming you have $1000 and you buy $400000 worth of EURUSD currency. And assuming EURUSD average a 1% movement a day (which is not unreasonable). Thus 1% of $400000 = $4000
If that 1% were to go against you, your account is wiped out and you’re down NEGATIVE $3000. So much so for leverage huh!
So now you know why your forex broker loves to offer you massive leverage?
Emotions
Humans were never born to trade. Our emotions are counterproductive to trading given how we are programmed biologically. We like to hold on to our losses, HOPING it will come back to breakeven. We cut our profits short FEARING it would run away from us. Hope and fear are the 2 killer emotions that destroy most accounts.
Biggest casino in the world
Yes, that’s right! The forex market is the biggest casino in the world. And you can open up an account for as little as $100. Wait, in fact, it’s even more convenient than going to a casino. At a click of a mouse, you can buy or sell! Wow, what better way to lose your money at the comfort of your home!
You’re challenging against the smartest, most hardworking people who have access to deeper pockets than both you and I can imagine.
These are facts your forex broker would never tell you as it’s bad for business. But hey, I’m not your forex broker! 😀
You’re really great and funny guy , Rayner. =)
I wish the best for you.
Thank you Shlomi 🙂
Dear Raynor, I would like to check what broker are you using currently that allows trading of currencies, commodities, precious metals, indexes in one single account please.
Thank you very much for your kind advice.
Hi Azrael,
I don’t discuss brokers publicly. If you want, feel free to shoot me an email.
Rayner
Would like to know which broker you think is reliable for forex trading. thanks
Hey Johnny
Feel free to drop me an email. I don’t talk about brokers publicly.
How can we choose right forex broker for trading? Would you please write a content on it. Thanks
I’ll look into it…
Send me the link of a nice broker you know …!