Two pieces of news caught my attention recently:

News: More than 2,000 S’pore investors lost over US$10m in MLM forex scheme, 2 M’sians jailed and fined
News: Jail for man who ran S$5 million Ponzi scheme while posing as ‘successful’ forex trader

I feel sorry for the investors who had lost their money. I’m not sure why they had trusted the scammers. Perhaps in the low interest rate environment, a forex trader who promises returns as high as 13 per cent seems too good an opportunity to pass over.

If those investors have tried trading themselves, they will realize the depth of the challenge. The reality is unlike the click-bait titles that we see on YouTube:

“Turning $1,000 Into $10,000 In ONLY 3 Forex Trades LIVE”
“How to Make $100 per day trading forex”
“How to Make $500 a Day with Forex Trading (3 simple steps)”

I have read how successful traders take years to hone their craft. I’m under no illusion that if I am to survive (and thrive), I will need to pay my dues too. Moreover, trading means dealing with probabilistic outcomes. Even when one has done everything right – right entry price with stop-loss, right position size, right timing – there is no guarantee of a sure-win.

When someone tells you otherwise, walk away.

TMT