Whether all this is the by-product of desperation or not, I can’t tell. But the desire for instant wealth characterizes our society. People want cash and they want it now.
Try and tell them to start thinking about projects that may take time before paying them back, you’re sure to receive a stern look from many. And this has opened doors for many tempting modes of solving that urge for money.
Some people have developed some initiatives that promise amazing top-ups over investments made, usually weekly increases. And many have ripped off the unsuspecting victims.
The remarkable thing about all these is that, most people are still heavily engaged with these schemes – all under the deception that it cannot be them the next victim. But let’s just give that a break, and turn to what has become a gigantic profit promising scheme – forex trading.
With issues of unstable economies coupled with unemployment, many are lured into trying out anything that promises large sums of money. They desire to take an instant leap out of the poverty trap. And I don’t blame them for that, but at the same time precautions must be taken.
It has been said that easy come, easy go – so it’ll be with the dividends from forex trading.
I know, I could be handed over to the tormentors if I were to say it is gambling of a higher rank. And as with gambling you’re as likely to make money as you are to losing it. But let’s get to know forex trading, shall we?
“I think individuals should allocate zero dollars to currency trading,” says Joshua Brown, vice president of investments at Fusion Analytics Investment Partners LLC, an asset-management firm in New York. “To go to an online brokerage and think you’re doing anything more than gambling is foolish.”
Forex’s frenetic pace can be brutal to rookies and sophisticates alike. Managing proper trade sizes and rapid price movements—all while using “leverage,” or borrowed money, to amplify the bets—can be devilishly difficult. One bad trade can blow up an entire account. Below are two risks that seem to stand out:
Trading for profit is risky
It’s important to realize that even the best forex traders have losing trades. While you may make some successful forex trades, you will also make some losing trades.
For every dollar one makes through trading somebody loses. And that when coupled with costs and fees can mean significant risks. Attempting to make predictions on exchange rates is undeniably risky, especially if the goal is profit.
Exchange rates are influenced by unexpected events, so it becomes difficult to always make a good bet, even for experienced traders.
For those who end up borrowing cash
This is especially terrifying, looking at what we’ve seen about chances of betting well. Bearing in mind all these risks can you imagine what would happen to you if you lose with the borrowed money. Your world will surely turn topsy-turvy.
Training and adoption of “killer’’ programs
Now, there comes another feature that increases the risks with forex trading: trainings and programs. Some individuals claim they can help with making timely bets and that certain programs can significantly help. No one person or program can truly anticipate the events that affect exchange rate changes.
Consult with registered service providers to minimize your chances of getting ripped off.
But the good news is that, financial regulators even in Lesotho are trying to figure out how to protect ordinary folks from being crushed in a market whose genesis was as a hedging tool for big companies and investors, not as a betting vehicle for day traders.