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Wow, forex has a bad name on other investing forums...

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  • Wow, forex has a bad name on other investing forums...

    I've been a member for almost a year now at a certain forum based on investing and being frugal ect... Now, on forexsignals.com generally we have a very positive attitude towards forex and we do consider following a trader such as Viper an investment. For example lets say you open a 25K account with Viper on the mam now, that would in our eyes be investing in Viper/forex. I've been at this site for just over a year and a half and I've made just over $41K AUD following the traders here.

    On the other forum which I love due to how open we are towards finance, networth ect... I'm looked upon as "pretty impressive" due to my high, self-made networth for my age (21). The moment however I mention that I have just over 100K invested in forex (60% of my networth) suddenly the hate rushes in. I'm known as a gambler, a bomb waiting to go off ect. Literally every time I bring up the subject "forex" and how much I have made without having my accounts blown they go nuts saying (not an exact quote) "yea, you can make money at a casino as well and not blow all your money for a while but you will blow it eventually."

    Has anyone else been on an investing forum and had other users look upon forex extremely negatively, as a form of gambling rather than investing? The users on this particular forum I'm referring to LOVE to invest in stocks for the long term (5 years plus). Their second favourite investment is property and apart from those 2 investments they don't really seem to like anything else. SOME of them sorta like online peer to peer lending investments and ALL of them hate having money in the bank (if you have money in the bank it's not working for you) ect which I actually agree with.

    Anyway what response to forex outside of forex forums have you encountered? As much negativity as I have?

  • #2
    Interesting point you brought up so I thought I would add my experience-
    Ever since I became involved in Forex around 8 years ago I found that most people I mention it to who are not involved in Forex themselves have very negative attitudes to it & their first comment is usually along the lines of 'isn't it just gambling?' or 'can you really make money from that?' I've also encountered the ethics argument as an investment.
    I learnt that it wasn't worth mentioning to folks who don't trade. The understanding of Forex by non traders is virtually non existent, it's like you can really only discuss with other Forex traders or on a dedicated forum such as this one. It's a specialised form of investment which has almost no comprehension in the salary or regular investment world. Oddly enough some other investments such as super & shares seem to be regarded as very 'respectable' even though they regularly hit bad patches & investors loose piles of cash, not to mention the distance between management & clients involved with these types of investments.
    A lot of folks earning regular salary who have managed super through their workplace don't really follow what they are actually investing in either -it can be quite surprising what is uncovered if you dig deeper into the more traditional investments & where the money actually resides. Thing with Forex is it's very much a hands on affair which doesn't appeal to a lot of people who would rather have a fund that charges huge management fees & run things for them & hopefully collect something along the way with minimal involvement by client. As you might notice I'm not enthusiastic about super or shares.
    Property investment I don't mind but like any market you have to do the homework. I invested in 2 building blocks (land only) a few years ago & was able to double what I paid in just a few years but market circumstances were unusual & an element of lucky timing to boot. As it turned out I bought in a rising market & sold at the peak of a property boom which hasn't been seen since, I doubt I could ever repeat it.
    Last edited by littlemax; 01-31-2016, 10:55 AM.

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    • #3
      The way you put everything makes perfect sense. When I think about it I see a lot of forex and binary options ads online, most of which are scams such as the Aussie method ect so I guess that also puts down the reputation of forex.

      I've started a tracking thread on that site due to all the negativity of them saying I will eventually get burned. I won't link to it from here as I am using different usernames to remain anonymous online but it starts off with my history following Viper for almost 2 years now which shows the consistent profit. I'll be posting there each month and hopefully prove to them that forex can be a successful long term investment.
      Last edited by Neptune; 01-31-2016, 11:10 AM.

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      • #4
        Ah yes binary options, add to the list I stay away from..

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        • #5
          Originally posted by Neptune View Post
          I've been a member for almost a year now at a certain forum based on investing and being frugal ect... Now, on forexsignals.com generally we have a very positive attitude towards forex and we do consider following a trader such as Viper an investment. For example lets say you open a 25K account with Viper on the mam now, that would in our eyes be investing in Viper/forex. I've been at this site for just over a year and a half and I've made just over $41K AUD following the traders here.

          On the other forum which I love due to how open we are towards finance, networth ect... I'm looked upon as "pretty impressive" due to my high, self-made networth for my age (21). The moment however I mention that I have just over 100K invested in forex (60% of my networth) suddenly the hate rushes in. I'm known as a gambler, a bomb waiting to go off ect. Literally every time I bring up the subject "forex" and how much I have made without having my accounts blown they go nuts saying (not an exact quote) "yea, you can make money at a casino as well and not blow all your money for a while but you will blow it eventually."

          Has anyone else been on an investing forum and had other users look upon forex extremely negatively, as a form of gambling rather than investing? The users on this particular forum I'm referring to LOVE to invest in stocks for the long term (5 years plus). Their second favourite investment is property and apart from those 2 investments they don't really seem to like anything else. SOME of them sorta like online peer to peer lending investments and ALL of them hate having money in the bank (if you have money in the bank it's not working for you) ect which I actually agree with.

          Anyway what response to forex outside of forex forums have you encountered? As much negativity as I have?
          Thanks for the post Neptune,

          I often get the same feedback from investors. The issue with the forex industry is that it's basically an online casino for the majority of participants with the broker playing the house. Obviously this doesn't sit well when put side by side with traditional investments. It's not the fact that we're speculating on exchange rates that turns people off, it's our segment of the industry being sold as a get rich quick scheme by most.

          However what people fail to consider is that if done properly, forex offers substantial benefits over shares or property. It's essentially uncorrelated with other markets and recession proof.

          I spent around 8 years building up a decent residential investment portfolio which has done fairly well for me, but I'm now dumping all my spare cash into forex because I see it as the best risk adjusted way to make money.

          Congratulations on your success so far and for going against the grain. When the market crashes and everyone's portfolio of shares and property slump, that's when people will really sit up and take notice.
          Would you like free lifetime access to our forex trading room?

          Open an account at Blueberry Markets and save the $97/monthly fee.

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          • #6
            Interesting points Nick. When it comes to a crash in the stock markets and property prices falling their argument will often be "investing is a long term commitment, the market will recover". Of course this is something I find anyway when following Viper. He recovers from his drawdowns all the time. These other people keep bringing up that 1/15/15 event that occurred in the forex world explaining that an entire account could be blown in moments. Yes, this is a possibility but think about how rare those events occur and how much faster you make money with forex. If you can manage your risk well, distribute your money across multiple accounts and traders you may lose 20% of your forex investments overnight but in just a couple of years your forex investments would have made at least 500% of what your other average investments have made making it overall worth the risk. I do admit though, I do have a little too much for comfort in Viper at the moment however I've got a mental cap and keep withdrawing to ensure I let my other investments grow overtime and balance everything out.

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            • #7
              Originally posted by Neptune View Post
              When it comes to a crash in the stock markets and property prices falling their argument will often be "investing is a long term commitment, the market will recover".
              This is one of my favorite topics to debate and honestly I could go on for hours. But I won't

              People make these assumptions because someone told them once that markets always recover... but they don't, not in real terms and not if you actually want to use markets as a vehicle to increase your wealth.

              Let me shoot a couple of ideas at you:

              SHARES/EQUITIES

              If you'd invested in the Australian All Ordinaries index in March 2006 (10 years ago) you would have made......(drum roll)

              0%

              AND you would have experienced a peak to trough drawdown of 50%!

              Not only that, but inflation has eroded your initial investment by say 20% over that period.

              So you're net return is circa -20% with a 50% drawdown..... over 10 YEARS!

              AND!

              The all ordinaries index suffers from survivor bias. This means that the under performing stocks are kicked off the index and replaced with better performing stocks, so over the 10 year period the actual makeup of the index will have changed, artificially boosting returns. So, theoretically if you'd bought all the stocks that made up the index in 2006 and held them, you'd have done significantly worse. Worse than -20% with a 50% DD!


              PROPERTY

              Property is seen as an incredibly safe bet in Australia due to the seemingly never ending growth we've experienced over the past 30 years. It's going up in value primarily due to scarcity (in addition to inflation). The more people that live here, the more competition there is for quality housing, so prices rise.

              However!

              What if population in a specific location drops? Or national wealth drops as a result of the share market crashing, and unemployment rises sharply?

              Speak to people in parts of the US, Spain and Ireland. These are economies not too dissimilar to ours that have suffered catastrophic losses to their property markets and have yet to make a proper recovery after almost 10 years since the subprime bust.


              My point being, that the attitude of "markets will always recover" is one used by lazy investors who prefer to take the easy road of dumping their money into an asset class and waiting decades for it to make a real difference to their financial well being.

              Imagine if you'd invested the same amount of money in one of our strategies and it continues to perform over the next 10 years?

              It'll likely significantly change your life for the better.
              Would you like free lifetime access to our forex trading room?

              Open an account at Blueberry Markets and save the $97/monthly fee.

              Click here to find out more.

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              • #8
                Great shared conversation!!

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                • #9
                  I have never considered Forex to be akin to a game of chance, though I suppose it may seem that way to some. In its core, Forex requires a lot of knowledge and experience to be successful at it. If you leave it to chance or luck or however you wish to call it and you'll fail. If you do, however, invest your time and efforts into learning, Forex can provide you with a good income, additional or not.

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                  • #10
                    Really? But, I donít care! Because I believe, Forex trading business is the most flexible trading sector! Of course, Forex traders get much better space for money making than options trading and stock market! If a trader loses money from this financial market that means, itís his or her personal problem! They canít read market properly! Knowledgeable traders are able to make here without any panic!

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