and i'll admit when i started in forex around 7 years ago as a newbie, i did indeed think that this bloke on the phone was a top bloke, he sounded like a really good guy, he used to give me information for free, he used to say things like this (half of which i wasn't really understanding to be honest, hehe
but he said things like...
"I like the look of the EURUSD Today, we've had some really positive data out of london and the Euro is strengthening , i see a bullish market ahead, now if that doesn't happen it'll go down to this point, but i really like the look of it and i think the it's gonig bullish, I WOULD BUY THE MARKET"
hehe..... Welll Yeah, of course it will
and if i go to a fortune teller they might say "Martin you will have good luck this week, but a few bad things may happen"
so now i would listen to him and Buy the EUR USD
- if it came good and went up - He would say, see, i told you THUS INSTILLING FALSE CONFIDENCE INTO ME
- if it turned around, Usually a speech like this is the Norm
"Hi mate, What happened to the EUR USD"
Broker - "Yeah.....who saw that coming huh, Must have been some bad data out of London, Who knows , but hey, these things happen, Better Luck next time"
The Truth is, These initial account Managers DO NOT HAVE A LOT OF KNOWLEDGE, they really don't
We all Perform a Function in the market, We all have a place and a job
the Job of the Account manager is to convert Demo's to Live hence Leads to Sales
Take the money in the 90 days, BUT MAKE IT LOOK LIKE IT WASN'T INTENTIONAL
Now. the newbie is gullable and Naive
(if you want proof of this, Go to pretty much any Binary Options You Tube video and watch how many newbies say to the Poster "this is amazing, can you please teach me how you do this"
if you want a true example (now, i realize your son is not trading Binary, but TO PROVE A POINT OF GULLABILITY)
you tube imbatrader (and research this, he has about a dozen videos you should watch)
PATH TO A MILLION imbatrader
the claims that by starting with (i think $1,000) he claims by doubling every day, he can earn 1 Million dollars
now.. Mathematically.. YES THATS TRUE
You'll find that after around 11 - 12 days of doubling you will indeed be at over a Million dollars
so his strategy was to trade binary for 12 days approx and make a million
SEEMS LIKE A FAIR CALL...HUH
and sad and Pathetic at the same time
My Advice.. get him to watch it
MAKE SURE HE PAYS ATTENTION TO THE COMMENTS
and asks himself "How can a person actually believe that this is going to happen"
oh, Pay attention in DAY 3 i think, when he says (even though the channel was called PATH TO A MILLION)
he says to everyone
"oh sorry, i didn't actually mean that you can make a million dollars, this is just intended to help people with trading"
but the point is
YOU CAN LEARN FROM THIS and so can your son
back to the broker now
Newbies are naive and gullable
the broker has no mercy, it's all about money
if they need to play the game where they act like your friend... SO BE IT, they'll play it
and if they can get a trainee WHO GENUINELY BELIEVES HE IS YOUR MATE and doesn't understand how the thing works, That's even better because then the customer and the account manager are both Naive
THIS IS A BUSINESS MODEL, Nothing More
and it works like a well oiled machine and historically it has proven to keep working
I've been doing this for 7 years
i'm now profitable consistantly and financially free as a result
but, Make no mistake.... for the first 3 years approx. i was losing (this is what everyone is trying to tell your son)
i can't remember exactly, but i think in total , over the 3 odd years, i think i burned through around ohhh. i don't know
Maybe $10k - $20k something like that Probably not more than $20k
I agree with the others who say your son should not be using Other People's Money at first.
he should first demonstrate ON DEMO that he can be profitable for a period of no less than 6 months
Now. he's saying he has a proven way to do this... GREAT, then do it , What's 6 Months gonna cost him
to put it in I.T. Terms
if were developing software that would make us Billions or Millions, Why would we not spend another 6 Months of testing and possibly debugging to make sure IT WORKS without issue
then after that, Your son should go live with his own money
he should then trade for around 6months to a year WITH HIS OWN MONEY, and if he can then do it live
THEN AND ONLY THEN, consider Other People's money
i know his friend is prepared to lose it, but why throw it away, that's pointless
in I.T. Terms that like a customer saying "I don't really have a lot of money i only have $300 to buy my son a laptop so ill go to the hock shop and pick up a laptop that has 512MB Ram Pentium D CPU and 80GB Hard drive, i know its not top of the line, but HEY, AT LEAST IT'S BETTER THAN NOTHING"
it's a waste of money to do that, if you don't have it, You're throwing it away without need.
same with your son
get him to learn properly and test everything, Later on, there will be more confidence from the investors and he'll be able to start with more perhaps
Show him this post hehe
get him to understand the truth
You're Welcome mate, i wish your boy well.. ok