Bedroom Traders. Good Traders or Just Good Recruiters?
I read an article yesterday from This is Money with a very long title "Trading in misery: The 'bedroom traders' boast of millionaire lifestyles... but those seduced by their claims can stand to lose thousands on risky currency bets."
Just from the title, you would already see the gist of the story. The practice is prevalent and a lot of "would-be foreign currency traders" fall into it. The operation is simple but effective. The so-called media influencers would flaunt their high-end lifestyle on social media. Lamborghinis, million-dollar houses, vacations to expensive resorts are the most common posts. Naive investors will be seduced and put their money into it. It is either they will pay for the education. The educations usually priced to thousands of dollars. Or they will be made to invest in a broker trading firm. The said successful social media influencer/ trader earns a commission for each deposit of referred investors.
Curiously, most of the so-called successful traders make a lot of money. Though not that rich as their social media posts (houses and other expensive items are mostly rented) that usually made a good sum of money for a living. Admittedly though, one leading influencer that most of his earnings come from commissions not on the trading itself. He says during one of the interviews, 99 percent of his income comes from commission.
It goes without saying that a lot of people are also losing money here. Not only that their dreams dashed to pieces. It may also limit their growth thinking to just quitting their dreams after a bad experience when in fact they can do it. It is just they may have taken the wrong approach especially when they are just starting.
C'mon take a read , it is interesting and serves as a good warning to us all. If you want to really learn about trading, invest time learning the strategies and discipline. Then make some trading, even with a smaller amount, practice makes perfect. Enjoy the read
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You are right most traders show off luxurious lifestyles that they cannot afford sincerely everyday and this will allow more people get into the problem of loosing more money on bets.
These influencers are just seducing other people to get involved with forex trading with wrong mindset. You can lose a lot of money with forex trading if you do not have the right strategy.