This may be a repetitive discussion but it is prudent we talk this issue of exploring investments options clearly to help innocent and genuine investors form being exploited by unsuspecting liars through being hyped. during the past months a lot of guys have complained that they have been conned and fleeced their funds by guys of "forex"( a guy called gabby complained of being conned 350k by woman,mozenrat also complained of being conned by a guy called Andrew Njoroge Kang'ara,and many other also are out there,and others have tested the market after being hyped and have burnt their hard earned savings. the burning question here is are the people being conned through ignorance or the investment is a scam as purported?

Forex investment is a genuine investment like any other financial market in the world and it has benefits and risks but the people who have little information about it tend to lure people who have no information to this market through hyping and unrealistic perceptions of the market then in the long run they end up branding the online forex a scam or gambling.
Differences between gambling and investment is that gambling/pyramid depends on myths,get-rich quick,ignorance of information,gut knowledge not supported by any facts,believing in assistance from mechanical methods or signals from place,unrealistic and unjustifiable level of returns,and skewed knowledge and information.
Otherwise investment is depended on having the appropriate information and skills,trading on facts supported by fundamentals,technicals and economic facts,ability to continuous research in the dynamic markets and updating the skills,depending on his knowledge and ability from historic perspective to future projections and a lot of relevant and factual information.
Sadly but reality is that most or all those who have been conned or duped were ignorant of information and they were taken advantage of by those who knew. Most or all who went to invest like many Kenyans like the idea of getting rich fast and not tiring themselves in information and research and they despise the realities of the markets thus they all end up in being burnt badly.Forex investment is a good financial market and have returns higher than most financial markets but the core issue is the approach of the market and the skills the person has in investing.
Beware;
1.In Forex there are no guaranteed returns but a person through expertise can have projections in the level of returns which are realistic,all who say they can give 10 -20% per month constantly are just duping and lying the public! I can say they are just lying the public in getting their funds to other schemes and themselves if well checked don’t have even the ability to trade. An investor with an ability to trade and has expertise will show you his track record of investment and he will expose to you the level of risks and factual information.



2. It is possible to lose part or all of you money in forex but for a managed fund to lose all of your funds is naivety in investment as in forex there a lot of ways where a person can minimize his level of losses to a certain extent where it cannot exceed,if a fund manager looses all your savings it means he dint have money and risk management and he was driven by only greedy. You need to ask the person what is the maximum you will risk my capital and it should be conducive to both of you. I.e. if you are investing $5000 he can risk only $100 at any given time of trade and beyond that you should be notified of your account. That will ensure you keep check on your accounts and fund.
3.You need to know the broker of the said person who is investing your money a. how genuine the broker is(is he regulated by government authorities in that country,his track record and historic experiences and reviews of the broker if is conducive to investment),also if a person is managing your funds you need to know that you are the one who will deposit the funds to the broker and the work of the fund manage will be to trade for you,the account will be at your discretion to close it and withdraw not at your manager will,before he trades you will get into agreement of how and what will be your returns,fees e.t.c.If you have been told contrary then unless you trusted him with your funds you were only duped.


4. You need to have realistic level of returns in the investment you should not be hyped in having unrealistic and unjustifiable level of returns,if you are investing with $1000 it will be of hype if you are expecting $100 a day!! Yes that’s possible but how much will you have exposed yourself to risks or the manager will have exposed your funds to possible risks which are very high here,target small but constant returns and like in any financial market the rate of return will depend on the volume of funds. For a novice trader to trade with high returns expectation is only a myth rather than a fact,it needs information and experience for some time. This is not get rich quick scheme but its hard work like in any other financial market. You need skills in money management and stick to your plans no matter how the market will move,be principled.

5. Most or all of you who were trained and tested the market after were shocked the question is were you given the right information and skills or were you only introduced to the market and given the basics!! Unfortunately most are only introduced to the basics only without knowing.


-The basics are introduction to forex,terminologies,fundamental analysis,technical analysis and few psychological skills. Basic fact is that forex trading is more than meets the eye! Its more than the basic knowledge given to you it needs constant research and information and skills and techniques in risk and money management. It needs the person to have economic background and market information,there are no short cuts for a successful trader you need to have all information at hand and be very dynamic. The so called perfect trading systems giving signals are good but not perfect,trading system is a mechanical system set by a professional trader to give you signals in the market this does not mean it is perfect,it will only suit you for a short run and will deter you from developing your own trading system thus inject laziness in researching information.Infact there is no perfect trading system as it is subject to changes in the market very fast and 90% end up loosing after a short stint of profits. The best system is your ability to reseach,update your skills and developing and sticking to your plans.


Another thing you are not told is that there is distinct difference in a demo account and live account but its sad a few people know and believe practicing with a demo account for some few months they get into the live they get notice after they are burnt and then rush to blame how bad the forex market is. There is no holy grail if you want to be a consistent trader then be realistic.

These are some reasons but there are many reasons why people get burnt and blame how bad the market is,its not the market that is bad its the people who give you information are the ones who have only basics,forex needs ability to research and willingness to explore information,there are no miracles its pure skills and information.
For those who say its a scam its only of lack of appropriate skills and information or ability. Those who say that they have not seen a person getting returns in forex are not genuine the reasons that a person gets profit today and looses all tomorrow is due to greediness and not having any developed trading plans,having myths,then yes you will loose but a disciplined trader always has limits that’s the reason only 5-10% are always succesful.Am very sorry for all who have been duped but they used your ignorance and hyped you rather than guiding you factually.


There is no investment which is perfect how many people have lost in stocks! Nyaga stockbrokers,flactuations of the markets e.t.c Its also only 10 -15% of stock market players who are victors and in a very long duration,the same applies to all other financial markets. So you need information and appropriate skills in financial market to reap the benefits,stop hallucinations in the market,you will only blame all markets due to ignorance. I bet anyone with right information and skills will loose but partially and will be always against the odds to rebounce back.










@NGAATU

Wonderful stuff. What does your firm deal in anyway?

This article is deep. if u give it time you will probably learn something




The only time u start from the top... is when your digging a hole

Ngaatu,why don't you begin a thread on the EurUsd where traders can see your fundamental and technical analsyis every day. Then perhaps other traders can comment on what their predictions. You can have a pre-London market opening and a pre-New York market opening.

I think this would go a long way in both demistifying FX trading and helping traders to make more money.

I can guarantee you that with the 11,000 FX self-traders in Kenya who are hungry for information,you string will be the most popular. And together,we can all get info from the wide array of sources which we all privately know.

What do you say? Just two posts a day on the EurUsd.

Your post looks informative,But i've been in the Forex business since its inception in Kenya and guess what,I have seen people been exploited for their lack of knowledge and guess by whom,well Mr Alala. So i feel the Information given by Mr. Alala to his clients is far fetched and has costed alot of people their financial stability. Am really not sorry Mr. Alala but this is the truth. I did my research and almost 60% of the information given is a Hoax.
Now you even a futures development corporation just to get more of that Money. I have seen all the features on TV with the misleading information and am creating an awareness about the forex market to anyone who will listen.
WHY?
Because I believe that forex trading is going to be second largest source o foreign currency in Kenya and its going to give lots of people employment. So Mr. Alala please get your facts right.

your remembered for the rules you break.

ACTIONFOREX: Dollar rebounds strongly today and remains firm after better than expected house price report. S&P/CaseShiller Composite-20 showed -15.8% yoy drop in May,down from prior -15.3% but was above expectation of -16.0%. Conference Board consumer confidence will be featured next and is expected to continue the down trend and dip further from 50.4 to 50.0. (Quick update,dollar jumps further higher after Conference Board Consumer Confidence unexpectedly improved to 51.9 in Jul)

Technically speaking,dollar is still staying in tight range against most major currencies. Though,note that the rebound is EUR/USD,GBP/USD and AUD/USD has been disappointing and it fails far below near term resistance levels. Also,further fall in these pairs will firstly put key near term structure support back into focus. Secondly,it will leave the fall in EUR/USD from 1.6038 and AUD/USD from 0.9849 in five wave structure. In other words,this will argue that both EUR/USD and AUD/USD has already topped out and more downside will be seen in these pairs,at least in short term. This will also put these two pairs inline with the outlook is USD/JPY,USD/CHF and USD/CAD,i.e. more strength in dollar should be seen.


Happy trading!

Interesting info @ Ngaatu.

When I was training some years ago,first thing I told my students is that forex is not easy,nor for the faint hearted,but one can make moderate profits if you can be disciplined and able to manage greed,fear and pride,together with alot of practice.

Once demystified,more traders will be on board.

A local forex forum for trade ideas may not generate as much traffic due to the global nature of forex. A good one for instance is www.global-view.com where among the traders who contribute are guys who have traded over 30 years. There's also a help forum on the site where novice traders ask all the basic questions,and traders take time and answer them (personally I learnt a lot from there).

But a Kenyan forex networking forum (on this site or another) would be more than welcome. Abroad they organise regular drink-up social networking events which are quite good,alot of ideas are exchanged.

@stephenalala
sorry..if you felt hurt..
i was just being cautious...so many people get cheated on forex and they lose their money

ahh

@stephenalala...
i dont know pipped...so the best is for you to ask him personally.....kila mtu hubeba mzigo wake...

ahh