My son is a self-taught forex trader for approx 3 years. He has been through the highs and lows of forex trading. He made bits of money here and there but then would lose it back to the market. His broker was very pleased with the proceedings!
Recently, either by luck or he has finally honed his skills, he made nearly £10,000 (USD 12,000) in a couple of days. This is the most he has ever achieved in such a short time. Previously, the most he has withdrawn is about £600-800.
A week ago, he withdrew £2,000 which went into his personal bank account. He made another withdrawal two days later for £7,000. All seemed fine until he tried to pay a bill. His card was declined. When he contacted the bank, he was told he was overdrawn. Turns out, the broker took back the £2,000 they deposited PLUS took every penny he had in his bank account. He had just been paid for his regular job and also had a recent tax rebate. Therefore, had several thousand pounds in his account. All gone.
He tried to access his broker's account and has been blocked.
He is resigned to not getting the money he made from the trades, but to steal his hard-earned monthly salary and tax rebate, is too much.
My question, is, what can he learn from this harsh lesson? What broker do you trust? What is the due-diligence process in choosing a reputable broker?
One lesson learned is not to use your personal bank account for business. The broker would not have been able to steal his money if it was separate. Second, immediately withdraw cash sent by the broker to a personal bank account.
Any other lessons?
This unfortunate experience has knocked his confidence. But, he said, the one thing they cannot take is his skill-set. He is determined to make it back.
. When you have read enough charts, you can pick up on what will happen next because markets are not random. Some call this gut feeling.
https://www.myfxbook.com/members/onlineaddict/from1tomillion-ea/9676855
