The original ‘Wolf of Wall Street’, Jordan Belfort, was actually a rogue trader who was convicted of fraudulently selling worthless penny stocks to inexperienced and ultimately naive investors.
Despite this cautionary tale, however, the Internet age has seen the emergence of several, modern-day Belforts, who talk about the ease with which fortunes can be made through forex trading while selling an incredibly lavish lifestyle. We’ll explore this cultural phenomenon in the article below, while asking how you should approach forex trading as an aspiring, newbie investor.
The age of the internet Forex scam
If you’ve ever watched a YouTube video, the chances are that you’ve seen at least one glossy ad in which a smartly dressed man talks about his success trading various securities and how you can make thousands of pounds a day simply by following a few simple steps. The goal is usually to sell viewers a place on a trading seminar or online course, or a particular piece of literature that offers hints and tips to aspiring traders.
One such man was the stocky 21-year old Elijah Oyefeso, whose videos have flooded social media and told fascinating tales about how the former housing estate resident has made huge sums of money through stock and binary trading.
Having successfully marketed himself on social media since 2014, Oyefeso even appeared on a Channel 4 TV show ‘Rich Kids Go Shopping’. Here, he bought expensive jumpers to give to homeless people, while talking about the ease with which he built his fortune in the market.
Of course, Oyefeso uses several visual hooks to sell his vision, often driving lavish sports cars and the very latest in designer fashion. However, he provides very little detail on the trading signals or market systems that he uses to become profitable, nor does he even have a website that explains his success in the marketplace.
Instead, it appears as though Oyefeso and many of his contemporaries simply recommend brokers in exchange for affiliate commission, while offering nothing of tangible value to those who sign up.
How to get started in the marketplace
These trading gurus often focus on speculative markets like forex, thanks to their derivative nature and the potential to open highly leveraged positions.
However, selling the dream of fast cars and private jets is simply at odds with the corporeal reality of forex trading, where around 70% of accounts regularly lose money and others focus on building incremental income over time.
Even on a fundamental level, describing any investment market as being part of a ‘get rich quick scheme’ is misguided, as there’s simply no risk-free investment option or one that guarantees sustained and inflated returns.
Instead, aspiring forex traders need to learn about the market’s fundamentals prior to taking the plunge, while forging a sense of determinism that enables you to recognise the underlying laws that govern change.
Similarly, you’ll need to identify a licensed and reputable forex broker, and one that offers you access to advanced trading platforms such as the MetaTrader 4.
It’s also important to start small and stay focused on making incremental returns over time, rather than buying into the dream and attempting to pursue riches that are simply unsustainable.