While many people believe that Forex trading can generate a lot of profits, it is not entirely correct. Craig Gradidge, the co-founder and top financial analyst at Gradidge-Mahura Investments, highlights that Forex is not for everyone.
Gradidge explains that Forex trading is better be practiced by those whose finance is already ‘in order’. By in order, he means that the finance should be enough to cover retirement savings, children’s education, emergency funds, and lifestyles.
Then, and only then, Gradidge said people may consider Forex. He argues that this is due to the risk of Forex trading for people, especially for those with mid-to-low incomes.
“The random outcomes in Forex trading are similar to that of betting on black or red on the roulette table. There is a one-in-36 chance that the green could come up in roulette. So, perhaps, Forex is slightly less risky, as the currency could go up or down,” he said.
He also added that normally people who make money from it are those who sell training programs or offer trading platforms. However, he does not say that it is impossible for average people to make money out of it, indicating that it is not a bad investment.
Also Read: Is Forex Trading a Scam?
The Risk of Scammers in Forex Trading
One of the dangers of Forex trading, according to Gradidge, is the scam. In his financial career, he already encounters numerous scams that might trick average people, particularly those who badly need money.
Among them, one scam guarantees to double people’s money in a month. In response to the guarantee, he says it is meaningless and, subsequently, aiming at draining your account.
In addition, Gradidge describes the scam as an attempt to return those scammers’ investment. “You are the source of their ‘return’,” he said.
To avoid this type of scam, Faizan Anees, the co-founder of ThinkMarkets.com broker, warns people to be more skeptical and cautious to this kind of offer. People should suspect why a company wants to make you madly rich effortlessly.
Thus, he suggests some practical ways to investigate the credibility of these ‘strangers.’ Accordingly, the most practical ways are to conduct an investigation on the reputability, regulation, how long the business runs, and the trading statements of the broker or bank.
