The Forex market is by far one of the most elusive markets to grab a hold of. It’s very hard to understand who’s making money and who’s not. More likely than not, when things are elusive and hard to understand, chances are it’s a scam. That is why so many people are getting scammed in this industry, and it’s leaving a bad taste for the market overall. In this video, I want to go over a couple of red flags. Without further ado, let’s get right to it.
Welcome! My name is Matt Jimenez. I’m an entrepreneur who has worked with the greatest minds in finance over the last several years. I’m here to pour into you everything that they pour into me. This video’s sole purpose is focusing on the foreign exchange market and all the trading gurus that exist, their tactics, and antics that they use to trick you and fool you into thinking that once you buy this course, join this community, or join their signals, you will become a profitable investor. Unfortunately, as much as I wish that were true, it’s not.
When it comes to trading and investing, the first thing I want to go over is the chances of becoming a profitable Forex trader. It is basically zero. The reason is that the whole system is rigged for you to always take on more risk, which undoubtedly will always lead to bigger losses. Let’s say you have a $10,000 account and this $10,000 account takes a 20% loss on a given trade. Now, most people would think that they need a 20% gain on the next trade just to break even. Unfortunately, that’s not true. You actually need a 25% gain in order to break even. The reason is that the next trade you take after taking that loss means that your account balance is now $8,000. So, 20% of $8,000 does not bring you to the grand total of $10,000 again, which would be your break-even point. A 25% gain is what would bring you to the break-even point.
This is the reason why most people will always end up losing money long-term. They’re either forced to take on more risk to make up for a given loss, or even when risk management is properly in place, this can still tend to happen, especially if you hit a streak of losing trades. Because now you’re forced to up your lot sizes, which is against risk parameters for the total margin in the account. This is why the fallacy of being a day trader is just a fallacy. Most of the guys claiming that they’re actually doing it just show you screenshots of open trades on their MT5 and MT4 terminals from their iPhone.
Now, that doesn’t mean anything because, first and foremost, when they’re showing you these screenshots and videos, they’re actually open trades. If you’re familiar with the MT4 and MT5 terminal, an open trade is something that’s unrealized. Just how when you have an open trade and you’re in a drawdown, it hasn’t actually reflected in your account balance. So, all that they’re showing you is open trades, whether they be in profit or not. It’s just showing you something that’s unrealized. That’s basically me holding a wad of cash that someone else has, that I took a video of, just to hand it back to them. We don’t know if I actually received that money.
First and foremost, it’s extremely easy to do Photoshop and skew all this information to make it look like it’s a live account. But the majority of the time, they’re just trying to lure you in to make you believe that they’re making money and that you could do the same thing, and it’s extremely easy. But the truth is, it’s not. In fact, this is the exact reason why they actually need to build a brand around the topic of Forex. Because people chase dreams, and that is the reason why people will always continue to fund this industry.
This is why all Forex traders have courses, communities, signals, products, and stuff like that. It’s because people will always chase money and chase the dream that they can receive money from a simple task like using their iPhone. They’re not actually in love with Forex. They’re in love with the thought of being successful with the ease of using their smartphone. So, don’t fall for the screenshots and holding up of the iPhone with open trades. That means absolutely nothing.
More importantly, if you do want to entertain any of these people, make sure that they have a verified MyFXBook link with data that tracks as long as they say that they’ve been trading. Chances are, they can’t provide you that, or they’ll say that’s confidential. If trading is their career, why would it be confidential when they’re trying to show you the potential of it? It just doesn’t make any sense. That’s like me trying to give you a trading software, but I don’t want to show you the performance because it’s confidential. It makes absolutely no sense whatsoever.
So, the things to look out for when possibly entertaining a group or a single entity involved in the Forex trading market are: make sure that they have a verifiable MyFXBook link with tons of data dating as long as they’ve been trading and as long as they have said they’ve been profitable. Secondly, ignore all the screenshots on the MT5 and MT4 terminals. It’s extremely easy to skew and make it up.
The last thing you need to understand is the game is skewed against you. The moment you lose a trade, the odds are forever weighed against you, even if you are practicing proper risk management. Yes, that is the only way to do it: making sure that you’re adhering to the risk parameters that you have set. Don’t ever break them because the moment you do, you will always be chasing something you never receive, and that is an actual profitable account, especially an account that you can keep long-term.
This is why most people always fail, and they always go to the next person, the next person, the next person, chasing the dream of becoming successful. But unfortunately, they’re doing it through the wrong vehicle. I hope that this video finds someone on the other end who can actually come to terms and realize that this is just not the route. The real route is actually using software that is proven to actually do this. It’s done for myself and thousands of other people. That is by far probably the best strategy and edge you could get for getting actual growth in the foreign exchange markets. But again, none of this is financial advice. This is just for your entertainment and information.
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Click it. Peace.
Please visit Reality of Forex Trading to watch the full video on YouTube!
