After reading how the forex market is very profitable, the first thing I did was to open an account immediately with a forex broker I found while surfing the net. It was not very hard to find one. All you had to do was go to any forex blog or forex forum and you will be inundated with a myriad of forex brokers all claiming to be the best forex broker.
I instantly joined an unnamed forex broker thinking that it was a great company. The salesperson was great on the phone. He convinced me that I was going to be a millionaire very soon and their company was too big to fold. Believing this guy was the beginning of my forex trading problems.
I will try not to talk too much about the forex trading problems as they bring a lot of bad memories. Other than the usual forex problems encountered by new forex traders, you should also watch out for your forex broker.Here are some of the things that started happening as soon as I opened an account.
I had tested my forex trading strategy on a demo account for about a month. I have to say I did very well with the account, growing it by 100% in that first month. You can imagine my joy when I saw my forex demo account at $100,000 from $50,000 in a month. I knew I had made it rich.
As soon as I placed my funds in the forex broker account, the opposite started happening. I somehow never managed to make as good a profit even after following the same trading strategy. Within 1 week, I had managed to decimate my $5000 forex account. You can imagine that my wife wasn’t too happy.
For whatever reason, my forex demo account trading results were significantly different from my real account.
Isn’t it strange that most forex traders make huge profits in a demo account but are miserable failures in real account?
I managed to convince my wife that I lost the money due to rookie mistakes and I had learned my lesson. The new account then suffered a phenomenon called; “the forex broker is after my money.”
For no reason at all, my forex broker was taking out my stops. I would increase my stops and they would still be hit. I tried everything I could think of and somehow, I always ended up losing. New stop placement indicators were just not working.
That is when I realized that the prices on my trading platform were a bit different from other trading platforms. It was a simple experiment which you can do. Open two different trading platforms. To make things fair, open a demo platform and a real forex trading platform from the same forex broker. The chances of the prices of both platforms being the same are slim to none especially during a volatile market.
However nice the salesperson is on the phone, understand that forex brokers are likely to stop hunt your orders.
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