Today I will deviate from trading strategies directly and will give a few words about the Forex traders forums. What does the novice trader when trying to thoroughly understand the intricacies of stock trading? Yes, he reads smart books, watching videos and of course trying to communicate with more experienced (as it seems) traders. Where? Forums. And thinking like a trader: “Brokers cannot be trusted, private blogs too. But the forum is definitely special! Will not fail!” Skilled manipulators use this.
Forex traders forum
Despite the fact that a lot of reviews and tips on the forums are true, there is a possibility and purposeful manipulation. For example, someone will claim that soon the value of the shares of a certain enterprise will grow in price, as the company will soon release an innovative product. What is the product, the company does not advertise, but the user forum has inside information. The result: traders trustingly buy paper, price increases, alleged “insider” on the growth sells papers, earns profit, and the price returns to equilibrium position because it is said nothing about any product.
Or another example: on the Forex forum traders knowingly publish information that undermines the reputation of the company. Because of the anonymity it is impossible to verify the information and to involve the user, and people are far more willing to believe the negative than something positive. And on the fall someone earns good money.
Alas, forecasts of investment banks or media that publish the results of any surveys are also a way of manipulation.
Few tips on how not to get trapped by the Forex forum traders:
- forums — are certainly good, but I would rather trust the discussions after the publication of the news or review on the economic website in the Internet. Moreover, it is desirable that it was independent of the site, not the site of the broker. The broker will often lay out the predictions that interest him with the appropriate moderation of the reviews. However, there is need to consider each broker individually;
- take the time to blindly trust what is written on the forum. Even if it’s not a figurehead, with the account may be hiding a rookie like you. However, it is sufficient to engage members in personal correspondence, to make sure about his knowledge and experience;
- saw an interesting idea on one forum, and you doubt of its reality? Ask your question with this idea on another forum, to protect yourself from fraud.
There can be a lot of such tips tips, but their essence is the same: to trust only yourself, to verify any information and do not hurry to part with your money. Beware!