The Misleading Videos and Articles By the So Called Millionaire Forex Traders to Rip You Off
There are a lot of invaluable information over the Internet that novice traders can use and learn a lot, of course if they know where to start and how much is enough to learn, otherwise they can get confused and overloaded.
What makes me sorry is the amount of the misleading videos and articles that can easily take traders into big troubles. The question is who is going to answer for the disaster that happens to novice traders after watching/reading a misleading video/article?
A few weeks ago I accidentally stumbled upon a video by a so called “Millionaire Forex Trader”. The title attracted my attention, and so I watched the video to see what a millionaire Forex trader has to say.
At the beginning of his video he focused on a few of the trading facts that he did not believe in. The first one was about the stop loss. When he mentioned that he did not set any stop loss and indeed he started making money after he stopped using any stop loss in his trades, I got shocked. He said that using a stop loss was one of the most stupid things traders could do.
Then he gave an example to prove himself. He asked the attendants (he was speaking in a seminar) whether they thought Warren Buffett would set any stop loss in his investments and trades. Does Goldman Sachs set any stop loss for the billion dollars investments it does?
By asking these questions he came to this conclusion that just because Warren Buffett or Goldman Sachs don’t set any stop loss, retail traders should also avoid having a stop loss in their trades. Nice analogy!
Obviously he even doesn’t know the difference of trading and investment.
First of all, does he really know how Warren Buffett or Goldman Sachs trade and invest, and whether they really set no stop loss?
Surely, the way they trade and invest is different, and they don’t set the stop loss order that a retail trader sets on his MT4 platform. However, it doesn’t mean that they have no strategy to cover the possible losses. They stop their losses through some different ways which is completely different from the stop orders we physically set on our trading platform. How is that possible that these professional traders and investors enter the markets without thinking about the possible losses they might have and choosing a way to stop or cover them?
Besides, do the retail traders have access to the same economy statistics and secrets that big investors and traders like Warren Buffett or Goldman Sachs do? Do retail traders hire the big and professional economists, market analysts and financial advisers that Warren Buffett or Goldman Sachs do?
The other question is, whether retail traders with small trading accounts have the same situation as Warren Buffett or Goldman Sachs whose investments sometimes go over billions? Can they trade and invest through the same strategy and following the same plan as big investors and traders do?
I am sure you know the answer of these questions correctly, and you know that the advice like trading without stop loss can only be heard from people who know nothing about trading.
The other things he said was that unlike what many traders believe, history doesn’t repeat itself.
I don’t know whether it matters to believe that history repeats itself or not, in order to trade forex and make money. Traders just have to follow a trading system and wait for the buy/sell signals. When the market forms a strong buy/sell signal they can enter the market and set the stop loss and target orders. Whether history wants to repeat itself or not, doesn’t matter here.
What I do know is that some part of the history can be repeated over and over. For example, you set no stop loss in your trades and your account will be wiped out without any doubt. Then open another account and trade without any stop loss again, so that History repeats itself and your account will be wiped out again.
You will never become a profitable trader as long as you don’t learn how to set a reasonable stop loss. Making money through trading is impossible as long as you don’t learn how to limit your losses. Indeed, before you learn how to make profit, you have to learn how to limit and stop your losses.
Look at one of the other things he emphasized on:
Honestly, I haven’t had a losing trade in years!
How is that possible?
This is possible only if you don’t trade at all. You will have some losses if you trade. That is part of the game and you cannot avoid it. The best and most professional traders also lose. Many of them experience losing weeks and even months. “Losing” doesn’t matter, because it is part of the game as I said. What matters is that you know how to keep your losses small, and let your profit grow.
Some professional traders lose even in 80% of the positions they take. But as their losses are too small, they not only recover the losses with the 20% winning trades, but also make profit. This is how it works.
Now, when someone appears all of a sudden and says he hasn’t had a losing trade in years, he is doing nothing but proving that he is lying, and is a con-artist.
Why does he bother to lie to people?
Simply because he wants to encourage people to sign up for his training course. Indeed, this so called Millionaire Forex Trader runs some training courses and sells some trading robots. He also trades with investor’s funds, and now he has so many unhappy clients who have lost their money.
I don’t want to focus on this special person, because there are thousands like him over the Internet. What makes me unhappy is that many traders believe these guys, sign up for their courses, buy their robots, and invest with them.
As I said earlier in this article, I just watched the video and felt sorry, and then forgot it. I really could not believe that there are some traders who really listen to these crooks:
Yesterday, someone posted a comment and repeated exactly the same things I had heard from that video. I understood that he had watched the video before placing his comment. He made me come to this conclusion that people really listen to what is said in those videos. Who is responsible for the money that people lose because of following the misleading advice they get from such videos or articles?
After watching such a video, those who are fed up of trading without any success for a long time, will get excited and think that they have found a solution. The first thing they do is that they trade without stop loss. They repeat this for a few times and will come to this conclusion that what they learned from the video was absolutely wrong, but it is too late, because they have already lost a lot.
What Should You Do?
Hope you have not lost any money because of following the crooks’ misleading advice. We have been repeating on this site that there is a clear and easy way to make money through Forex trading. There is no top secret here. It is not something extraordinary and special that has to be given and taught to you by a mentor or a saint. The only thing you have to do is that you start from the right place and follow the right track.
First you have to learn the basics. Then you have to learn a trading system and demo trade to master the system. When you become able to repeat your success and make profit consistently at least for 6 consecutive months with your demo account, you have done the hardest part of the work and you are almost done.
Then the last stage is that you open a live account, as small as possible, and try to do what you have been doing with your demo account. This live account has to be as small as possible, because indeed it is the second stage of your demo trading. You have to make profit consistently with your live account for 6 consecutive months at least, the way you did with your demo account. If so, you can call yourself a profitable trader.
Then you have two options:
- You keep on trading with the same live account and grow it slow and steady.
- You add funds to your live account and make it bigger and suitable for professional full time trading.
The first option is what I recommend. The reason is that although you have become profitable, you are not professional yet, and chance are your emotions take the control if you start trading with a large amount of money that probably you cannot afford to lose.
Therefore, it will be much much safer and easier if you keep on trading with your initial live account. Don’t think that it will take you a long time to grow it. It is your greed that is telling and pushing you to top up your account.
As usual, I am going to show you the right place and help you follow the right track. Follow the below article, you learn the basics, as well as a trading system, without wasting any time and money: Become A Profitable Forex Trader In 5 Easy Steps
Also, read the below articles if you think it takes a long time to grow a small account:
- How to Become Multi Millionaire Trading Forex, with a Proper Trading and Risk Management Method
- A Forex Trading Plan: Limit Your Greed and Make $53,000 Per Month After Two Years
- Can You Really Become a Millionaire from Forex Trading?
Good luck 🙂