By A significant number of forex influencers in Kenya advertise forex trading as a get-rich-quick scheme. Forex influencers use various social media platforms such as Instagram, Facebook, X, and TikTok to promote forex trading. They flaunt luxury cars and homes on social media platforms to attract clients. Forex influencers never mention the downside of forex trading to beginners. They only mention the probability of earning lots of money within a short period. However, the reality of forex trading is different. Many people lose their hard-earned cash to forex traders. Forex influencers often ask beginners to fund their accounts. After that, the forex influencers ask to manage accounts, promising to flip a few dollars to millions. Forex influencers, however, end up blowing accounts because predicting price movements in forex is very difficult.
Forex influencers in Kenya collaborate with various brokers such as Deriv, Scope Markets, and Exness. The influencers advertise these brokers in exchange for money. The social media pages of forex influencers are filled with links to join various brokers. Forex influencers earn big rewards when they invite friends and their social media followers to trade with their brokers. Brokers promise forex influencers that they will get more rewards if they have more referrals. This encourages forex influencers to continue pursuing more people to start trading. Forex influencers still get money even if their referrals lose money trading.
The forex trading market in Kenya is faced with transparency issues because influencers do not tell the truth about trading. Many people have been misled and deceived by influencers to join forex trading. These people have ended up losing lots of money. Forex trading is real; however, it involves significant risks. Traders are likely to lose their money due to emotional trading and revenge trading. Emotional trading occurs when emotions such as fear and greed determine one’s trading strategies and execution. For example, one may fail to execute a profitable trade due to fear. One may also be guided by greed to execute a trade that eventually leads to a big loss. Those who would like to invest in forex are advised to start small and only risk the money they can afford to lose.
If anyone would like to start forex trading in Kenya, they should be ready to lose their money. Even though one might end up earning profits, incurring losses is guaranteed at some point. One should not join forex trading if they are not willing to lose their money. That is because in any trade executed, there is a high likelihood of seeing losses first before the trade eventually turns profitable. Beginners should not be persuaded by forex influencers’ flashy lifestyles on social media to start trading. It is important to understand that even the gurus take one to five years to achieve profitability in forex trading. Forex trading is not a get-rich-quick scheme as influencers advertise it. It takes a lot of time, significant investments, and losses before eventually turning profitable.
