The internet is littered with these ads. You'll be happily going about your internet way and one of them just pops up. Or you hear a voice in the background saying something along the lines of: Learn how John Smith became a multi-millionaire by his mids. Don't wait another day to begin your journey to wealth. While one in the past could've easily dismissed these get rich quick promises, it's harder to do now because of the real people, particularly with an online presence, who claim forex trading has indeed worked for them.
These traders are also not too shy to show off the lifestyle forex trading has afforded them. A brief online search with hashtags lifeofatrader forextrading and forexsignals shows you just how much money they claim to have made.
A post shared by jabulani Ngcobo cashflowngcobo on May 28, at 8: The biggest financial mistake I have made was not thinking big enough. A post shared by Quan Flipper quanflipper on Apr 26, at 5: A post shared by CEO G. B madsreinventedgab on Jun 7, at 8: Forex trading changed my life , is a hell no,earn anytime you want at any please in any currency you want.
So, when people say they are into forex trading what exactly do they do? Because if we go by social media, to trade requires an open laptop with a moving graph. Simply defined , forex trading is the buying and selling of currencies based on market activity. Forex traders speculate on whether the exchange rate will go up or down and just like any other form of speculation, they want to buy a currency at one price and sell it at a higher price in order to make a profit.
For example, if they think the euro is going to rise against the U. They will then lose the trade or the money they risked on that specific trade. However, there is no way of accurately predicting how the currencies will perform.
According to Jaba Investments , forex traders "take calculated risks by relying on statistical probabilities to determine trades". All emphatically share the sentiment that it is far from easy and definitely not a get-rich-quick scheme. Rossouw had her accounts completely wiped out when she started trading and it took her years before she made any real money out of forex trading.
ACM Gold 's David Rosenthal says people who have made money quickly normally end up losing it the same way. Trade money as you would any other investment. Johannesburg-based forex trader, Tshepo Brand, warns potential investors not to fall for brokers who guarantee returns. A full-time forex trader himself, he tells HuffPost SA: It is trickier and more complicated than people think, but people underestimate its difficulty. You will lose money -- guaranteed Maria Bongwe lost R1,6 million.
The year-old from Polokwane, who had been trading for just a couple of weeks, made a R, initial investment that quickly grew to R1,6 million. She then lost it all.
Bongwe recalls how shattered she was at the loss: Johannesburg-based forex trader, Siphiwe Magudulela, paid R35, to attend a trading seminar and has been trading full-time since. He says he made his first million in September , but lost it all in February of Percy Ngwenya, from the North West, blames losses he has made as a forex trader on greed.
Ngwenya, who labels trading as a "very dangerous investment" tells HuffPost SA he miscalculated how the market would perform during Brexit. He has lost R25, in one day in one trade. Trying another form of trading, he lost R60, in one go.
Another forex trader, Thanda Zulu, who is based in Durban, has also been doing it full-time for almost five years. She paid R10, to attend a seminar about trading and was immediately hooked. Unemployed at the time, she saw it as a great opportunity to earn some income.
A view she still strongly holds. She admits, however, it hasn't been an easy journey. I had to teach myself and be hungry for it.
She does not believe she has fully reaped the benefits forex trading can afford her. The scammers Jaba Investments says the market is full of them. Fake trainers, fake brokers, fake traders or trading companies; all they care about is getting their hands on people's money. Next thing, their offices are closed and they can't be reached on the phone or traced on social media.
These are people who may be looking to make a quick buck, while others are just fed up with being unemployed and hope forex trading will provide them with much needed income. A reader who wrote to City Press had invested a lot of money with a forex trading company that later disappeared. The reader was no longer receiving withdrawals and subsequently lost a house, car and other valuables.
To try prevent such situations, potential traders and or trading companies have every right to check if the company they want to invest money in is registered with the Financial Services Board. The FSB is an institution for non-banking financial service providers, aimed at protecting South Africans who want to branch into non-banking financial avenues such as Forex from losing their money as a result of fraud or scam.
Transgressors can be fined and or imprisoned. Where forex trading trainers are concerned, however, Rossouw says scammers may still be getting away with it because forex trading training in South Africa is still unregulated. Get top stories and blog posts emailed to me each day.
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