Introducing forex to the interested
Something that I think needs to be done better is the Introduction to Foreign Exchange Trading. And when I say, “done better” I mean handled with more tact and consideration. The people who are introducing the newbies to the concept, at least from what I’ve seen, seem to leave out key components of the trading business, sometimes intentionally, but more often times not. It doesn’t necessarily only extend to simple stuff like an explanation of how complicated it could get, as there are a lot of elements at play that needs to be properly discussed before you introduce anybody to the world of forex.
Firstly, do not downplay the losses. So many people try and advertise for forex as though it is the alternative that you’ve been waiting for. The money making opportunity that you’ve always wanted. Something that’s legal, a lot of people do it but not too many and there’s a lot of information about it on the internet. But of course, everybody is going to talk about the potential of gains but never the potential of losses.
From an advertising standpoint, it does makes sense to leave the losses part as a small tidbit that they bring up from time to time because they don’t want to overload the ad with negativity and because they are usually legally obligated to tell you. Kind of like how the terrible side effects of a lot of pharmaceutical medicine are listed at the end of a commercial and usually in quick succession. They don’t want to dwell on it because they want to focus on the positive so that you can buy into whatever they’re selling. So in a way, I can’t really say that this is going to stop anytime soon but from the version of communication about forex from friend to friend? The wording could definitely be better.
In my case, the person who recommended Forex to me made it sound like I was practically guaranteed to receive a paycheck each month because she found a class that’s taught Forex exclusively and so I’d learned tools of the trade, so to speak, and gain an advantage.
Technically she wasn’t entirely wrong about the possibility, especially with the referral system for the company I was joining with, but man did she downplay the potential losses leading me to believe that the limited knowledge that I did gain was enough to put me way ahead and boy did I pay for that. Literally. I was one of those people that ruined their account in the past.
This also brings up another aspect to be considered: the amount of knowledge that you need to be considered safe or comfortable with trading. As I have said before, you can get lucky with trades and rack up a bunch of wins without much knowledge but that leaves it almost entirely to random chance; in which case that would be gambling. Well, I didn’t do something as naive as going in deep without checking out the forex academy system that was provided to me first, I didn’t go as deep as I should into the more advanced topics.
I thought I was well equipped and I would get to the advanced stuff later. And surprise, surprise I was wrong. When talking to somebody about going into Forex you have to clue them in as to the extent of knowledge they need to reach before going past demo trading.
Which leads me to yet another point: Demo Trading. If you’re going to recommend forex, please emphasize the importance of demo trading. If you’re going to be guiding somebody along make sure they stay in that demo account until they understand exactly what they’re doing and how the market factors and every other factor affect the charts. Do not leave them alone with just a simple recommendation to try the demo account because the moment that they might get a few wins, they may think they’re totally ready to go into live trading and that almost never turns out correctly.
And lastly, direct them to the sites that specialize in Forex. Not the ones that are affiliated with any particular website that gives out info on Forex calendars or current trends by experts or things like that. I’m talking about sites with Forex forums. The Reddit page for Forex is a good start. Any amount of slightly advanced issues could probably be solved by navigating these forums effectively. Of course, it will probably take a lot of time and you’re likely to stumble across threads of people exchanging technical jargon that the person would not be completely sure of at the time but it helps to keep looking rather than entertaining the thought of “I’ll figure it out myself later”. It’s the little details that can save the person a lot of grief and save a lot of money down the line. Keep it in mind.