The madhouse called "Forex Trading."
- A thread.
- A thread.
1/ Early this year, a young man walked into my office at @Overwoodng and offered to "help" us make 5% per month on all the investments in our portfolio.
I did the math and saw that our $1m will quickly become $1bn in 15 years at 60% per annum from this gentleman.
What a deal!
I did the math and saw that our $1m will quickly become $1bn in 15 years at 60% per annum from this gentleman.
What a deal!
2/ So I asked him about the underlying asset.
He said Forex Trading.
I asked him about the underlying value he is creating.
He said "nothing". We are just trading currency.
I asked him about his track record.
He said he has made 7.5% per month for the past two years.
He said Forex Trading.
I asked him about the underlying value he is creating.
He said "nothing". We are just trading currency.
I asked him about his track record.
He said he has made 7.5% per month for the past two years.
3/ Please note that 7.5% per month is 90% per annum. Which means he doubles his principal every year.
In this magical scenario, you can start with N1m and have almost N40billion in 20 years.
That's amazing.
In this magical scenario, you can start with N1m and have almost N40billion in 20 years.
That's amazing.
4/ He showed me his financial records that reflected the magical 7.5% per month and got my whole team excited about the prospects that we could all become magically rich without doing much work.
Just give this magician $1m and we are set for life at 5% return per month.
Just give this magician $1m and we are set for life at 5% return per month.
5/ I am a little older and more experienced so I asked him to log into his trading platform so that I can see the magical gains.
Of course, he suddenly got antsy.
I promised him a lot of investments if he would show me the gains from his platform.
PLATFORM, not records.
Of course, he suddenly got antsy.
I promised him a lot of investments if he would show me the gains from his platform.
PLATFORM, not records.
6/ He logged in and showed me his Q1 2019 record, and he actually gained about 30% in Q1 2019.
Absolutely magical!!!
I insisted on an expanded date range and sure enough, he lost all the gains in Q2/3 2019 and made a loss for the whole year.
Absolutely magical!!!
I insisted on an expanded date range and sure enough, he lost all the gains in Q2/3 2019 and made a loss for the whole year.
7/ My team was shocked but I just grinned knowingly.
If you can make 7.5% per month, you don't need investors. You don't need marketing. You don't need to sell a teaching course.
You just need a small amount of money and 100% focus on your craft.
If you can make 7.5% per month, you don't need investors. You don't need marketing. You don't need to sell a teaching course.
You just need a small amount of money and 100% focus on your craft.
8/ The reason they are propositioning you to invest in their magic venture is because they don't make 7.5% per month and they need your money to fill a gap.
Anyone who can consistently make 7.5% a month will be the richest person in the world in a few years.
Anyone who can consistently make 7.5% a month will be the richest person in the world in a few years.
9/ Be careful, guys.
I can assure you that less than .01% of FX traders can make more than 2% per month.
If 2% per month is so difficult to achieve, how can these magicians offer you a 5% return?
You will lose your money. Don't do it.
I can assure you that less than .01% of FX traders can make more than 2% per month.
If 2% per month is so difficult to achieve, how can these magicians offer you a 5% return?
You will lose your money. Don't do it.
10/ Finally, before you pay the tuition for a FOREX class, ask the teacher:
1. Show me your 2-year trading PLATFORM gains. Remember, PLATFORM, not REPORT.
2. If you make 7.5% per month, why are you NOT the richest guy in the world?
3. Why do you need my meager $1000?
Selah.
1. Show me your 2-year trading PLATFORM gains. Remember, PLATFORM, not REPORT.
2. If you make 7.5% per month, why are you NOT the richest guy in the world?
3. Why do you need my meager $1000?
Selah.
11/ Investing should be strategic, long term, and deliberate.
Read this for a sustainable investment model:
Read this for a sustainable investment model:
Some people have asked me to explain how forex trading works.
See below:
See below:
