Online forex trading a silent addiction

MORE often than not, addiction is pinned on drugs and alcohol.

Young people constitute the majority of drug and substance users and concerns have been raised about how some of them were even abusing unconventional substances such as fluorescent lamp powder and elements from diapers.

Zimbabwe has been recording high rates of drug and substance abuse ,particularly among the youths.

The government declared drug and substance abuse as a national threat and has since established a technical committee to address the scourge.

However, there is another form of addiction that is silently wreaking havoc mostly among the youth – online forex trading.

Online trading addiction has proven to be as detrimental as any other addiction as many marriages have collapsed and lives destroyed as a result.

Addiction is defined as continuous involvement in a substance or activity despite the negative consequences.

An addiction occurs when an activity provides a strong source of stimulation that over time a person becomes psychologically and sometimes physically dependent upon.

Forex trading is the trading of one currency for another on the foreign exchange market.

It is referred to as one of the best ways to diversify investment portfolios and earn a living. This activity has become incredibly popular, especially with the youth seeking to earn an extra dollar.

Mr Marvellous Njemaa, a youth from Emakhandeni suburb in Bulawayo, said online forex trading addiction among youths is growing.

He said an initial significant investment is required for trading tools such as financial newswire, time zone converter and a calculator.

“I have been doing this for almost a year and I haven’t seen or faced obstacles in forex trading.

“The easier way to make a profit out of it, is to follow their important trading methods such as a Trading Platform. This requires one to have access to a good trading platform. Many trading platforms are available today. The best among the pack has outstanding qualities like an intuitive user interface, reasonable spreads and pocket-friendly fees.’’

He said they provide real-time information on aspects that can impact the market, such as economic conditions, geopolitical events, company press releases, and central bank announcements.

‘’Every forex trader should be familiar with the market’s operating hours. They should also know the four main trading sessions: New York, Sydney, Tokyo, ad London. Lastly, as a trader, you need a time zone converter. This will enable you to identify the trading sessions open in the present local time,’’ said Mr Njemma.

Another youth, Mr Mthokozisi Moyo, said he once engaged in an online investment that crumbled last year.

He said he now regrets investing as it almost ruined his life.

“I joined a certain online investment platform (name supplied) two years ago.

“Initially, I made so much money that I could feed my family but unfortunately, it didn’t last as the founder scammed investors.

“The advice that I can give to youths, who are still engaging in online forex trading is that some trading platforms are unreliable and only out to siphon their funds.”

With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Due to the nature of leveraged trades, a small initial fee can result in substantial losses and illiquid assets.

Furthermore, time differences and political issues can have far-reaching ramifications on financial markets and countries’ currencies. While forex assets have the highest trading volume, the risks are apparent and can lead to severe losses.

A social worker, Ms Loveness Msekwa, said she has counselled many youths who are addicted to online trading.

She said the majority of youths she has dealt with were in a depressed state as they were scammed of their money.

‘’I have encountered many youths who are online trading addicts,” she said.