Why There Are So Many Forex Cults

Good Morning Traders!

In today’s email we’re going to discuss the following…

• Today’s Market Breakdown

• Unraveling the Mystery of Forex Cults

MARKET BREAKDOWN

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PRO INSIGHTS
Unraveling the Mystery of Forex Cults

The Rise and Fall of Financial Fandoms

In the dynamic universe of trading, there's a peculiar phenomenon that often goes unnoticed - the emergence of what I like to call 'Forex Cults.' Picture this: groups of traders, united under the banner of a charismatic leader, following trading strategies with the fervor of a religious zealot. It's almost like a sitcom plot, but with more charts and less canned laughter.

Before we dive in, let's clarify what I mean by a 'cult.' In the trading world, it's not about cloaks and secret handshakes (though that would be quite a sight). It's about a small group, often orbiting around a magnetic figure, adhering to specific trading beliefs and practices that deviate from the mainstream. This brings us to the stars of our show: ICT and NNFX. (They’re the most recent I can think of)

1. Attractive Promises: The Bait in the Forex Sea

Ever heard of the saying, "If it sounds too good to be true, it probably is"? Well, in the world of Forex cults, attractive promises are the shiny lures. They dangle the dream of quick riches and infallible strategies - because who wouldn't want to turn their laptop into a money-printing machine?

Most forex guru’s use this tactic. ICT and NNFX actually don’t do this, they instead preach the opposite. Making money in forex is hard and that we shouldn’t believe the guru’s who say its easy. This now immediately puts them in a position of trustworthiness and authority.

They then proceed with a something along the lines of “trading is hard, don’t trust the gurus online, but the thing I preach actually works, nothing else does, if you follow this exactly as I say you will be successful, if not you will fail”

😑 

2. Social Proof: The Echo Chamber Effect

Social proof is the bread and butter of these groups. It's like that one friend who keeps telling you how great a movie is until you start believing it must be good. Forex cults create an echo chamber where success stories (often exaggerated) are amplified, making the strategy seem more effective than it might be. You also begin to believe that only this can make you successful since it seems to be working for others and nothing else worked for you.

3. Sense of Community: You're One of Us Now

Humans love to belong, and forex cults tap into this. They offer a community where everyone speaks the same trading language and follows the same market gurus. It's comforting, like being in a club where everyone agrees that pineapple on pizza is the greatest (or not, depending on which side you're on).

4. The "No True Scotsman" Fallacy: The Ultimate Defense

This is a classic tactic where a group or individual insists that their method is the only valid one and dismisses all other approaches. “Nothing else works except what we preach.” And then if it does work for you, you’ll rave on about it until the end of time. Though the reason something else didn’t work could’ve been a lack of your understanding of the strategy, or you didn’t give it enough time or enough effort etc. Not necessarily that only this strategy works and nothing else.

Financial Faith or Folly?

So, are these forex groups genuine communities of like-minded traders or financial cults leading people astray? It's a fine line, blurred by promises, community spirit, and clever psychological plays. Remember, in the world of trading, skepticism is your best friend. And remember, there isn’t just ONE way of trading that works.

QUOTE OF THE DAY

This quote ties together with what we talked about earlier. It metaphorically highlights the power of symbols and recognition in motivating individuals, particularly soldiers. It suggests that beyond monetary or material rewards, the honor and prestige signified by a simple token, such as a ribbon representing a military decoration, can deeply inspire and drive human effort and loyalty.

This insight reflects Napoleon's understanding of human psychology and his skill in leadership. He recognized that symbolic rewards, embodying honor, respect, and recognition, often hold more value for individuals than more tangible, material benefits, especially in the context of military service where such intangible rewards can foster a profound sense of pride, purpose, and belonging.