1. Leverage
Many brokers who provide great leverage, there is a 1: 500 even reached the 1: 1000. Beginners generally very happy with this because it is enough with a small capital, then it will be able to buy a lot in large numbers. Surely in the shadow in the head, how incredibly efficient, enough with small capital but can yield great profits. Whereas the profit in forex, it is not easy to come by, which is easily obtainable is loss
If you can afford to buy all at once with a capital of only 20 lots of USD 10,000, then the loss of 50 pip alone will be able to wipe out the capital. Let us calculate together, 50 pips on a standard account is equal to USD 500 per 1 lot. Multiply that by 20 USD 500 lots, now equivalent to USD 10,000 is not it? Once enough transactions only with the loss of 50 pips, then the whole money capital will move to the pockets of the broker
2. Minimum Deposit
Have you ever wondered why the brokerage vying for opening an account to minimize the deposit and not adopted?
Because the broker know when to open the account required minimum deposit to USD 10,000, certainly not many can afford. Therefore minimized such that a lot of the deposits attracted.
Not to mention the added lure of, when you make a deposit of US $ 100 plus a bonus will be US $ 30. Well, who isn't interested in bonuses?
After the deposit is received the broker, then the live account opened with the leverage 1: 500. Imagine, how good her heart the brokerage, was given a bonus of US $ 30 is still coupled with a very high leverage provided. Well, it feels like you are actually bona fide someone very trusted broker.
When the broker understand perfectly well that the percentage of failed is 95%, only 5% were able to escape. Easy to guess what happens next isn't it?
Small capital with high leverage is a poison which turns off instantly. Not a problem gives a bonus of US $ 30 or even $ 3000 up front, anyway the broker just to make time just wait for US $ 30 back into his pocket. Not to mention afterwards still plus US $ 100 from Your capital money that disappeared due to experiencing loss
The Broker actually only lend to You US $ 30. It initially seems like given free for you, but with the percentage of failures in 95% forex, surely only a matter of time only in order to make the money back into the pockets of the broker.
3. Slippage
Slippage is the difference in price can be tolerated. Suppose you want to do entry buy, of course after the mouse-click and then the command entry was finally getting to the server broker requires time. Due to the presence of pause time then the price has changed, not the same again by the time you click the mouse.
For example You set slippage of 3 pips, if the difference in price is not more than 3 pips, then entry buy will be non-. However, if the difference in price more than 3 pips, then going requotes, and you must click the mouse again to repeat the entry.
Slippage is used not to obstruct the broker entry, but to block the exit. By blocking the exit, then loss position will experience greater loss or profit position to have fewer profits, due to these positions late exit because it is difficult to be closed.
But this is only a problem of slippage occurs if not used, take profit, stoploss or trailing stop. However, it does not mean the use of stoploss and take profit is not free of problems, it can also be utilized by the broker.
4. No Connection
This will occur if you repeatedly able to profit in large quantities so that brokers felt the need to supervise the trading that you do. How does the broker, at the time of trading gain profit then Metatrader made loss connection aka lost connections when internet connection is fine, just missing the connection in Metatrader.
Due to no connection, then you cannot close a position that was profit. This will give time to the broker. Keep in mind, the market always changing direction so that the profit you earn is no longer as big as before or worse, profit turned into a loss. Well, if this is already happening, then the connection will be enabled again by the Metatrader brokers. Anyway, if later You complain then broker living responded with a lightly "we've done some checking and everything was fine, maybe your computer problem". It's hard to be proved, is it not?
No connection is most often occur when high impact news. Do not hope the stoploss has been installed will work, since it is never experienced myself.
Stoploss is not at all working so that loss that originally had been restricted to 30 pips, eventually becoming a 100 pip stoploss line stays on when in the position of back. At the time of high impact news, prices will move fast and deliberate by the broker cannot perform entry or exit. If not sure, please just give it a try myself, but try it on a live account because most brokers subterfuge going on live and not in the demo.
5. Stop Loss Hunting
Spread is a very potent weapon for the broker. Rarely are noticed the change spreads become very high in only 1 or 2 seconds only, completely undetected.
Spread is a deduction of profit and loss Enhancer instead. For example, in the position of loss 17 pip by pip stoploss 20, brokers stay just add 3 pip spreads on for 1 second. As a result, direct triggered Your stoploss and suffer loss.
Or is currently in a position to profit 27 pip, just wait for a minute in order to reach the target of 30 pip take profit. Broker stays increase the spread of 3 pips, then profit was 27 pip will automatically drop to 24 pips spread due to increased suddenly. In this way, then the take profit untouched and give time for the market to change so that profit shrink.
Therefore, never assume that the broker is Your best friend. They are actually a Wolf furry sheep, especially Market Maker broker. They have interests on money capital, the more the value of the loss it will be more profitable for them.
Brokerage firm builds upon the fact that 95% will fail in forex trading. Therefore, when you have a Market Maker broker companies and want success then it should be organised so that the client is experiencing loss, any way as long as it is legal. The above ways are legal ways in the world of forex. Everything goes so quickly that it is difficult to be proved.
This paper at the same time answering my questions so far, why there is a broker very aggressively wooing the people who do not understand to do forex trading with the promise of heaven as though filthy rich can soon easily. It turns out the answer on the above matters, namely how to divert the money as soon as possible in order for the client to deposit the bags in the broker. How legal is by making the client as if losing forex so difficult to do because the prosecution is certainly on the initial contract has mentioned "the loss will be fully borne by the client."
Whereas, without diakal-akali, forex trading has been very difficult, especially if there are inside, plus a subterfuge just vanish faster deposits
Learning that can be drawn from this paper, don't ever get into the forex world with capital money actually if still not understand. The money that you have earned will be gone in an instant. Study and on the first demo, then a new entry into the world of forex is actually a case is completely confident and ready.