NFA Brochure all traders should read. (newbies especially)

[dagger]

thanks you for the great info

new bewbie here

[forexmaveric]

Thank you for providing information for new traders with NFA information concerning spot forex trading. I have been in this site for just a few days and I have read some pretty outrageous claims to fame. If its too good to be true....run like hell ladies and gentlemen. I am licensed and registered by the NFA, and believe me it is not in any licensed brokers best interest to make outrageous claims of "rags to riches" in spot forex or anything for that matter. I can't afford million dollar fines from the CFTC or the NFA...let's not forget jail time too. ):

Caution to new traders:

1. Beware of anyone who claims consistent wins without any losses. This is impossible, and not reality.
2. Beware of brokerages that offer outrageous leverage such as 1000:1. I have actually seen this before in the web with a brokerage in Sweden.
3. And especially beware of anyone promising you 100% guaranteed wins by purchasing their trading software. If that were true...countries would be literally fighting for this imagenary magic trading box.

The reality of trading is that you are going to lose trades no matter what, and it's best to grasp this reality now, and not learn a hard costly lesson down the road.

Absolutely trade with money you can afford to lose.

You should never, ever trade with borrowed money. I have read a few posts in here with clowns trading with money they got from cash advances from credit cards or loans of all sorts. I don't think Citibank will be happy that you are trading/losing their money.

Please remember that no matter how much effort or study you commit to forex, there is no guarantee you will make a living out of this. In fact the odds are overwhelmingly against you. A wall street study www.wsj.com on the profitability of spot forex traders basically came down to this: 95% of all forex traders in the study who started with $50,000
or less lost all of their capital in less than a year. "Thats right, all of it." The study suggested that you have better odds getting hit by lighting a thousand times in one year than making a small pot of say five grand turn into a fortune.

Thats why this is a serious game, and should only be played by someone with cash that can be lost & not detroy you financially.

Spot forex like futures is a zero-sum game..that is for every winner there is a loser. That means for a trader with dilusions of striking it rich must successfully trade & take someone elses money to make money!!! I sure as hell am not going to give it to you...and the market makers won't. And probably none of the guys in this site either.



Fiction is a very popular product. After all, thats why the movie industry is so successful. "Fantasy sells."

P.S. Reality in perspective= Sometimes even the so-called experienced expert traders get blown out of the water, " Hint hint...Long Term Capital Management."

Stay safe and happy trading.

[FOREXFORKAREN]

Excellent read. EJM

[keniadeniyi]

Could not access the link. Is it still valid? I am new beginner in forex trading just about 2 months. Practising on demo, learning money management and emotion control and which indicators to hone on.

[gummybear2]

Hi there, we got done over my a bogus trader, to the tune of a few hundred thousand dollars, but there is nothing we can do, not even a registered domain, they had the most polished site on the web, we even sent of doco's to a street address for ID purposes. We have learned from it, a hell of a lesson I might add, so be careful out there its a jungle out there and please read the brocher.
Cheers
GB2

[flockmaster]

Originally Posted by tunesmith

Erdveus

CMS will shut down it's trading around heavy trading to protect it self. Your stops will not be honored. It has happened time and time again. They apologize and state how they are doing all they can to update their servers. Then they roll out a new VT version and do the same thing all over again. You absolutely cannot trade with them around news releases. Too bad because I love the platform but I had to pull my account after repeated instances of this.

ok, could you recommend other brokers???TIA

[tunesmith]

I have been using fx solutions. They seem to be reliable and they do allow mini-lots which I trade. Their platform is pretty good though not as good as VT. Check around and see what others are recommending. I'm sure there are others that are just as good, or maybe better.

[huddwah]

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