If you look up anything trading education-related on Google or YouTube or any other channel. You will get a million hits about the same things like support and resistance lines, chart patterns, candlestick patterns, and so on so forth. The same goes for trading academies and schools, they will all teach you the same things.
But does it really work?
Short answer: No, it doesn’t.
Long answer: You can make it work, but you will need to spend at least 5/10 years of your life to master these strategies fully, and your risk management has to be super tight. Your profits will be minimum, and not worth the energy and stress you put in.
The truth about trading education
Some of these traders quit trying to trade Forex for a living and move over to educating people. They know a lot about the market sure, but they’re not making money in it. Most trading educators have never been profitable traders.
This is the truth that no one tells you about, but it is crucial if you want to understand the reality of trading. Because it’s not as what other people make you believe it is.
Perhaps you follow famous millionaire trading gurus on Instagram or Facebook, and you think they are legit. Their social media accounts are designed to brainwash you the most possible into believing you can do the same if you follow their signals, or whatever they promote.
It’s a heaven for online gurus and marketers. Building a following and making people believe they can have the so-called “Trader Lifestyle” as well.
They are posing with super-cars and Rolexes, while they’re traveling the world and staying in the most expensive hotels, with dinners in the fanciest restaurants.
It’s kind of like a drug because once you believe in that dream, it’s very hard to get you out of that dream. Perhaps you don’t like your job, or you’re in your 20’s, and you don’t want to have a 9-5 job for the rest of your life, and you want to live the dream “Trader Lifestyle”.
It’s all a big marketing trick to make you believe in their lifestyle so they can monetize it. But this so-called “Trader Lifestyle” doesn’t come close to the lifestyle of most full-time traders.
They’re spending 12hrs a day behind a screen with constant stress and zero social communication. Most day-traders are miserable people, and they’re risking severe mental health problems. You really don’t want that “Trader Lifestyle”.
If you trade using our method, you don’t have to spend 12hours behind a computer screen. In the end, it’s all about freedom, these trading gurus promise “freedom”, but that’s just not true.
Someone who works 80-100 hours a week and makes 20K a month, doesn’t have the same amount of freedom as someone who works at McDonald’s for 38 hours.
Your goal is to create a stable income from trading and to slowly grow your trading account to create wealth. Desperation will murder you. If you want to be successful, you will have to play the long game. Freedom will come together with that.
IMPORTANT! Before you continue: This is an example of how some “Trading Educators” operate. Please do not use these strategies to defraud people.
Let’s say you have a hundred people in your mentoring group, and you’re giving them trading ideas/signals. You don’t give them the same signals, that wouldn’t be a smart move if you’re not a successful trader yourself. So what do you do? You apply some Ponzi scheme techniques.
Out of the 100 traders, you tell 50 to go long, and 50 to go short.
Out of those 100 traders, 50 would’ve lost, and 50 would’ve won.
Out of those 50 traders that won, you tell 25 to go long, and 25 to go short.
Out of those 50 traders, 25 would’ve lost, and 25 would’ve won.
Out of those 25 traders that won, you tell 12 to go long and 12 to go short.
Out of those 25 traders, 12 would’ve lost, and 12 would’ve won.
Out of those 12 traders that won, you tell 6 to go long, and 6 to go short.
Out of those 12 traders, 6 would’ve lost, and 6 would’ve won.
And finally, out of those 6 traders that won, you tell 3 to go short, and 3 to go long.
You will end up with 3 traders out of the 100 traders you started off with. You could even save some of the other 97 traders if you play smart and apply some other techniques.
The 3 traders have won 6 trades in a row! Fantastic! They have now fully drowned into the trader lifestyle dream, and they have completely lost their realistic view of trading. They think they can just do whatever they want to do in life. All they have to do is just execute some trades after they get their trading ideas from you, and sit at the beach doing nothing.
Once you get them to that level, they will trust you a lot and will buy almost anything you offer them.
Also a very common trick they use to lure people is the following.
- They create 2 real trading accounts to prove they are not demo trading.
- On account 1 they open LONG positions on the EUR/USD pair. (or any other pair/instrument)
- On account 2 they open SHORT positions on the EUR/USD pair. (or any other pair/instrument)
- They wait until 1 of the 2 trading accounts is in a lot of profit.
- Finally, they make screenshots of the profits, and they confirm that their account is real.
- They won’t show you the account with the losing trade.
They don’t lose any money because they have hedged their position. They open a LONG and a SHORT position at the same time, one account will be in profit, and the other account will be in a loss. This is a very old trick, but it works very well for them.
And the final one:
Metatrader4 is the most used trading platform when it comes to FOREX trading, so you trust them for not making it possible for people to manipulate results with. Wrong, metatrader4 platforms are getting manipulated through exploited versions of the software and fake live servers. You can’t trust anything when it comes to proof of trading profits. There are too many falsifications.
Look at the entry price of [NQ100]. It changed from 12069.76 to 11740.00
The truth about trading education – Brokers
IB Agreements, also Introducing Broker agreements, were invented by brokers to get more clients to sign up. You will find IB Agreements between the “educator” and the Broker on almost all free trading content online.
The “educator” promotes the Broker, and tries to make as many traders sign up with the Broker to trade with them.
The Broker will then pay the “educator” a share of the commissions that the traders pay to get their trades executed.
This introduces a tremendous conflict of interest because the “educator” wants his traders to execute as much trades as possible to maximize his commissions.
The “educator” will teach very high volume strategies and often on very low time frames to his audience, to maximize the number of trades that get executed.
It’s not in their interest to make you money, they know trading is too hard, and they know you will eventually quit anyway.
This is amazing for the broker because they save a lot of marketing costs if “educators” bring traders to their platform themselves. Forex trading is not set up for you to make money with, the low barriers to entry and the marketing behind are is just a big trick to manipulate you as much as possible into doing dumb things with your money.
Most “educators” are just very smart marketers, who know how to sell their rubbish while the traders keep believing it will make them rich one day.
The broker is not on your side.
And the educator is on the brokers side.
If you would own a Forex broker, and 99% of your traders are not making money, would you have a problem with taking the other side of their trades?
You would basically win 99% of the trades. This is why brokers will always provide the same kind of “education” everywhere, such as chart patterns, support & resistance lines, and so on so forth.
They simply make more money if a client loses money because they can take the other side of their trade + they receive commissions, it’s not in their best interest to have profitable traders. If a trader is profitable, they can only profit from them via commissions.
If a broker would really want their traders to make money and succeed, they would have to change the whole industry.
Their low entry barrier with the small deposit requirements as low as 0$, and high leverage as much as 1:1000 is almost a guarantee you will lose your money quickly.
The brokers know this very well, some of them will even give you a bonus if you sign up with them.
Regulators don’t care.
Sometimes regulators come in action, but its always AFTER some scandal has occurred, and they will give the broker a “small” fine to make it seem like the regulators are doing their job properly.
Regulators could crush the brokers’ business model if they wanted to, they could make the sign up process way slower and harder.
Currently, it only takes about 5 minutes to set up a brokerage account, even though they know 99% of traders that sign up will lose their deposited money eventually.
They could prevent the loss of a lot of people their life savings and even debt in some cases. Obviously, this is people their own responsibility, but the regulators could do a lot against people losing their money.
What to avoid when choosing the right broker for yourself.
Choosing the right broker is crucial since they hold your money, and you need them to be reliable. You should always look for a broker that has been around for a very long time, and they should always be located in proper jurisdictions and regulated by the authorities.
The three most common mistakes when traders are looking for a broker:
1) Searching for “best Forex broker, etc.” on the internet.
Sites that advertise brokers with “best Forex broker lists” are affiliate marketing websites; these websites are made for marketing purposes and not for your best interest.
2) Looking for brokers with the lowest spread.
You shouldn’t be obsessed with low spreads. In today’s age, It’s almost an industry standard for brokers to have low spreads in today’s age, all major brokers have good spreads because no one will trade with them if their spreads are terrible.
3) Going to brokers with the highest leverage.
Brokers with 1:1000 leverage are usually unregulated because no regulator allows crazy leverage like that. Most of these brokers are registered in places like Nevis, St. Vincent and the Grenadines, and other offshore jurisdictions with bad reputations. Your money isn’t safe with these brokers if they ever go under; your money is gone.
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