Forex Systems, Are They Scams?

Article Written By: Edward Lomax

It is not hard to find people complaining about Forex products and services on the Internet. If you look long enough, you are going to start to wonder if everything you find online is a scam. The thing is, trading Forex successfully is more complex than downloading a system, learning it in a few hours and putting real money at risk.

In my opinion, a person without the skills and experience to trade a system properly will inevitably find a way to turn a winning system into a loser. But this does not make the trading system a scam. I think there are less Forex scams than people think. What people want is a "turn key" Forex solution (one they can get and start trading perfectly from day 1).

That kind of system really doesn't exist. All you need is a trading system with a positive expectancy that you can trade according to the rules and consistently. The you just have to trade the system consistently in order to be successful. All trading systems undergo losses and have losing streaks. The trick is to have such a high degree of confidence in the system that you keep trading it during these times of loss. Once you've created this level of confidence in the system, you just need to keep trading and you'll end up profitable in the long run.

Unfortunately, most traders don't trade long enough to gain this confidence before abandoning the system and getting on the Internet screaming "scam". Another problem which leads to prematurely calling systems scam is having unrealistic expectations. This happens a lot of the time because people want to make a certain amount a month trade, but have such a small account that it is impossible. If you only have a $1000 account, making 15percent a month trading really doesn't create a lot of income.

But what about 15percent of a $100,000 account? Don't get me wrong, you don't need a big account to start out with. As a matter of fact, I would advise starting with a smaller account and using compounding to grow it to a substantial account. The point is, when people find out they are not going to be making 1000percent gain every month, they say the system is a scam.

If you can use a proven system consistently and in the way it was designed, it will make you a profitable trader. The problem is, most people don't have the proper mentality or skills to trade the system properly, especially when real money is on the line.

This is what leads to poor results. Basically, the person is responsible for the poor performance of the trading system, not the trading strategy. But it is easier on the ego to call the system a scam, instead of having to admit their role in their failure.

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