A lot of advertisements offer everyone to change their lives, give up boring work and start making money on the Forex market. For this, supposedly, no special investment, no special knowledge, or too much time is required. Is it really possible to make money quickly and easily on Forex?
The advertising brochures of various companies providing access to the Forex market promise huge profits for beginners, a rapid change in social status and other benefits. In return, you need very little: take a free course, install a client program on your computer and make a small deposit. Unfortunately, in reality, everything is far from so rosy.
Forex or casino?
In theory, Forex is a kind of exchange platform model, only currencies of different countries are used instead of stocks. Indeed, the international currency market for free quotes exists, but large players participate in trading there, and the minimum amount of transactions is rarely less than ten million dollars. It is quite difficult to enter this market, as transactions are carried out here with real currency. As for Forex in the conventional sense, trading here takes place exclusively in the virtual space.
Do not forget that in Forex you are playing against real people, which means that in order for someone to win, others must lose. In the early stages, you will almost always lose.
The Internet is replete with examples of how some lucky managers manage to earn 1000% of the profit from their investments on Forex. However, in reality, it is more likely not about earnings, but about luck. In this sense, Forex is not much different from a casino, where a one-time win does not mean anything but a lucky coincidence. If you look at the reports of the most successful players on the so-called "long distance", you can see that the average annual profit very rarely exceeds 100%, and this is considered an excellent result.
Based on these figures, we can conclude that for normal earnings in Forex, the starting capital should be about 10-12 thousand dollars, which, if you are lucky, will double by the end of the year. In reality, rarely does anyone spend time on such calculations, preferring to add $ 100-200 to a deposit and rely on luck. At the same time, almost all coaches and consultants agree that a person will surely lose the first hundred dollars. In introductory workshops, this is referred to as “training costs”. The supposedly low threshold of entry and the seeming simplicity of playing on Forex often leads to the loss of more and more significant amounts, since the excitement here is quite comparable to card games or roulette.
How do you actually make money on Forex?
We must not forget that the Forex market in Russia is extremely poorly regulated, so there is a high probability that your money will be taken to an unscrupulous brokerage office. There are many fraudulent schemes that can ruin beginners in the foreign exchange market. One of the most striking examples is the so-called "kitchens". In the broker jargon, "kitchen" is a way of organizing trades in such a way that all transactions are made within the organization, without entering the external market. Client orders are either closed by counter orders, or by the broker itself, which, as a result, plays against its client.
Most of the dealing centers providing access to Forex in Russia are registered in offshore zones. In practice, this means that if they do not want to return your money, you will have to go to the court of another state.
Despite all these obstacles, it is really possible to make money on Forex, but this will require tremendous mental stress, time for training and significant financial investments. It is much easier to secure a stable income with the help of Forex by organizing and conducting various seminars, trainings and selling educational aids.
