This topic is simple! If you go on Twitter, you can EASILY find a bunch of memes about people mentioning Forex in a negative light. You want to know the main reason behind that? M.L.M.’s.
Multi-Level-Marketers have destroyed the reputation of day trading in the Forex market. What MLM’s are, are those companies that have you recruit 3 people, who recruit 3 more people, who also recruit 3 more people, and it benefits the person at the top.
There are several MAJOR companies out there who have attached Forex to a MLM and now everyone in the world thinks Forex is a scam. Let me tell you something right now: FOREX IS NOT A SCAM!
It’s the MLM’s that are within the Forex market. They preach that you can get-rich quick, they tell you all you have to do is sit on a couch and get a trade alert to your phone and you’ll make money, they have a bunch of lamborghini’s on their social media, they make you recruit people, so much so that ANY random person in the street who knows what Forex is, doesn’t know the Forex I know. They know THAT Forex, and they automatically assume the entire market is a scam.
There’s a reason trading in the stock market doesn’t have that reputation. It’s virtually the same thing (technical/fundamental analysis) – but they don’t have that reputation. Why? Because there are very few stock MLM’s. You will hear somebody swear UP and DOWN, “I will never trade Forex!!! Seems like such a scam.” But in the same breath ask if you have ever traded on Robinhood or eToro.
I just wish people knew the pros and cons to both if they REALLY wanted to day trade, and then were able to pick which market benefits them the most.
If you are somebody who’s reading this article, and you’re intrigued by Forex but you think it’s a scam, please do not. This market is the BIGGEST market in the world. Yes, way bigger than the stock market. Do not let social media change your opinion about the market.
This is why I tell people I’m a day trader and not a Forex trader. Due to the stupid perception that MLM’s has caused the world to view us from.
Do your research. Understand all the different markets that are available to you (stocks, forex, crypto, real estate, options, etc), and make the best decision for you. Those markets are NOT scams. Now, some people within them may be. But make sure you find the right person to learn from if you know absolutely nothing. If someone is promising you’ll get a return of 15-100% if you let them trade for you, or saying you can make money just by sitting on your couch and getting alerts, I’d run away. Learn how to trade for yourself if you’re really interested.