Forex is an amazing business where there is opportunity around every corner. From opening a demo account to participating in live seminars, all can be done with the touch of a computer.
While the industry is busy focusing on the perks and benefits of becoming an investor, some dark sides are not equally shared.
It is perhaps many will not come forward to invest if these issues ever get the attention. However, traders should be aware of the concepts that are in this sector.
Not everything is going to be by book and sometimes there are small rules that can represent this vast community. The concept that we are going to elaborate on is unique.
Not only major brokers decide to intentionally ignore this scenario. There have been numerous examples of how people have failed to account for this. Do not be afraid as it is very easy to overcome failure through trial and error strategy.
We are going to describe a scenario that many investors have faced in their careers without even knowing it. This is the infamous 90-90-90- scenario.
So what is this all about?
It simply implies.
“90% of the investors lose 90% of their capital in the first 90 days.”
Let’s say, a person has invested 1000 dollars. The rules state, you will have lost 900 dollars which equals 90% of your entire investment within the first 90 days. This person is one of the 90% of investors who have come to the same fate.
It sounds pretty unbelievable, if not possible given the vast resources available on the internet. What is even more magical is there are many paid signal providers. For a certain amount of money, they can provide you with accurate signals which will help you to grow their fortune.
Based on this information, how can a person lose all their money so easily? Well, this is why it is called an infamous scenario. It is hard to believe and sounds crazy but only who experienced it know that it’s true.
Ask any retired investor or any person who has quit this industry. High chances prevail you will hear the story of losing their capital within the first few months.
Rational approach in ETF market
Those who actively participate in the exchange traded funds market, knows a lot about the price dynamics. No matter which method you rely, you can’t secure your investment unless you consider the probability factors of the market.
Taking trades and trying to beat the market is nothing but a lame approach. If you want to survive, you have to know the rules of probability. This mean, you should be well prepared to accept the losing trades it might be tough but it is the only way to become a skilled trader.
Learn about the famous 90-90-90 rule. Read books and articles so that you can use this information to boost your performance.
So, why have my broker not informed me about this?
If you were in the broker’s shoes, you would have done the same thing to the customer. The reason is this is so scary it seems like straight out of a devil book. Potential clients only hear what they want to hear.
This is why there have been numerous brokers who are providing a bonus of many times the amount of the initial deposit. Remember, not all of them have what’s best for you in mind. Mostly, they are trying to attract people to join their business and make money out of them.
Like any other profession, there are risks that cannot be ignored. If someone thinks he is not prepared to undertake such dangers, it is better to quit than to get involved in the first place. Now this has been explained to you in detail, it is up to you whether or not you want to participate in currency trading.