In the last ten years, representatives of the Forex community have already got used to the regular hysterical tantrums of dedicated exchange skeptics. However, revelations of monetary secrets still arise every other day, infecting the minds of novice traders with groundless doubts and contradictions.
But who are these critics of the exchange business? Are they losers who shrugged off the burden of business prospects, or old-timers who warn the beginners of the high risks of being blatantly taken advantage of?
Know Your Heroes
At first glance, a typical ghost buster of financial markets is your hilarious guy that tries to conceal his own failures and mistakes, general financial illiteracy, and ordinary envy behind the pretentious and unreasonable trolling of other market participants.
They are often inexperienced but ambitious beginners who get frustrated after losing another deposit and go on an indefinite vacation. After returning later, they point the finger at the most obvious scapegoat - the broker, stock exchange or other intermediary that is, naturally, the reason of all his failures.
This is the inescapable fate of those who decided to compensate their failed business ambitions. The skeptic finds a real pressure outlet only in the masterpieces of their own delusional mind. These are paranoid and grotesque stories about slips, stop-cuts, unpredictable sanctions of brokers, as well as ambiguous excerpts from public offers and anything that can undermine the reputation of the exchange business.
These noobs are always ready to attack the "irreversibility" of the exceptional risks of the exchange game, whispering classical mantras about bucket shops and deposit losses. Such attacks, in the end, once again bring the Russian Forex community into a cowardly discourse about the artful conspiracy of market makers.
What are the risks that exchange conspiracy experts are talking about?
The general arguments of skeptics are roughly as follows: greedy stock market puppeteers and ever the poor puppet traders meet on financial markets, where the latter profit only as far as the former allow them.
This logic applies to DCs and to individual dealers, as well as Forex and stock brokers and to all other financial intermediaries who have the necessary technical base for secret internal market-making according to their own laws of price movement.
"So, members of the forum who have been trading for more than 2 years on the Forex, have you noticed any changes? (In the sense of building candles and other nonsense? Look closely at the charts, especially the minute charts, can the bulls and bears trade like that? where is the dynamics in the news? why does not the market react to financial news? , Maybe the owner of the exchange launches a price movement algorithm beneficial to them ... ... and explain to me why a major player in the market should think about dropping everyone from positions? It makes no difference to them! CONCLUSION - the interested one is the one with all the finances – the owner (owners) of the exchanges! I welcome your feedback !)))"
An example of the aggravated resistance instincts against exchange owners.
Skeptics point to the almost unlimited abilities of the market intermediary to influence. It is also emphasized that the need to put the trade requests of traders on foreign markets cannot be realized at all. They say, why should a broker bother with inter-bank trade and buy money from Uncle Bob if the digital bucks drawn by a Forex broker also trade well in an atmosphere of internal clearing?
These arguments, unfortunately, are the only successful examples of such criticism. Meanwhile, Forex brokers remain one of the most liquid and popular capital engines between various foreign markets and their subjects. What the alternative is for the risks and prospects of Forex trading, these skeptics never mention. So what should we do - work for a salary, open a bank deposit, or keep the capital under the pillow, thus letting go of all the risks to buy back inflation?
How to make sure of the liquidity of the intermediary's operations and to test the real risks?
Even if these dreamers were right, what would change?
Perhaps the colossal amounts of cash and other assets that are traded on these self-serving exchanges would still provide labor markets, production, social funds, state budgets and the world economy as a whole. Not to mention our small transactions on the Forex market.
So the general diagnosis for these illiterates is this: the tendency to greatly exaggerate the risks, superficial and speculative arguments, inert and immature conclusions, and simply the banal spirit of idleness.
But there is a grain of truth in their words. All sorts of bucket shops, Internet pyramids and hypes disguised as counterparts of the Forex market slip into the tops of search engines and other ratings now and then, thus generating the highest demand for their services. And that's why once again we should refresh basic safety, which will help avoid the risks described above:
Be vigilant and make sure of your broker's liquidity providers.
Among Forex brokers, one should choose those who provide access to ECN accounts that adhere to the principles of free OTC global transactions. Study the public offer of your intermediary for ambiguity of formulations. If necessary, invite a lawyer to assist you.
You can also learn international laws and regulations that govern global interbank trade and assess trade standards for financial markets and their managers.
But the last thing you should do is occupy your precious time with pointless gossip with radical exchange skeptics. They do not earn anything themselves, and they will only get in your way – steer clear of them!
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.