The illusion of freebies
Why is it always worth giving up bonuses, contests and other free games in the DC.
With contempt reject free meals
What they offer you for nothing is fraught with danger: usually there’s a tricky trick or hidden obligation behind it. It’s worth paying for something. Paying your way, you get rid of the need to thank, feel guilty and deceive. It’s often smarter to pay the full price - you can’t shine and save at the same time. Do not spare money, make them work, generosity is a sign of power and attracts it.
"48 Laws of Power"
Many brokers offer various bonuses + 30% for each deposit, 100% if you deposit money up to the number N, etc.
The bottom line is that with this they are trying to attract new customers and force old ones to trade more actively. Here, a person got a bonus on a trading account and thinks: “let me open a position here, it’s growing, and 5 cents of the bonus are free, if you can lose ". The order opened from the bulldozer loses, the trader already loses more bonus, but holds the position, hopes. Or closes the loss and opens the opposite order, hoping to recoup.
“What if you simply withdraw this bonus?”, Some will ask. Do you think in the DC fools work who give out money to everyone? Of course not. Always, to withdraw the bonus, brokers set up draconian conditions. Open orders for several hundred lots or hold $ 500 in an account with the company for at least six months, etc. In each case, the conditions vary, but they are always almost impossible for the average trader. And even if you manage to comply with all the conditions, even then, you may be denied (there have been cases) in the withdrawal of the bonus.
There are especially cunning DCs, where, if you agreed to take the bonus, you can not withdraw not only the bonus, but also the main deposit, until you fulfill their idiotic conditions.
Also, brokers lure people with various contests. The meaning is simple: in any case, several people will win, even simply according to the law of probability. And everyone else will receive a strong subconscious incentive to open as many positions as possible larger than necessary, which leads to a massive drain of accounts - and this is just what brokers need.
Recently, it has become fashionable to hold contests on demo accounts or even give "no deposit" bonuses. The scheme, again, is simple: a person makes money on a demo (any fool is able to cut millions on a demo account, because there is no psychological factor) , naive thoughts come into his head to repeat success in real life, and he opens an account. The goal of DC has been achieved.
By taking a bonus, participating in contests, promotions, etc., you create a powerful subconscious incentive for yourself to open more positions of a larger size or to place an overvalued lot in advisers = incorrect trading = a waste of time.
The moral is: always refuse bonuses, promotions, contests and another "freebie" from the DC. Believe me, in the end it will be more profitable than free cheese.