How Not To Fall For A Forex Scam
How Not To Fall For A Forex Scam?
What Is Forex?
The forex market is a global market that lets you trade currencies. You can go long (buy) or short (sell). In other words, one currency’s value goes up while the other decreases. The goal of trading Forex is to predict what will happen with these values in the future and then take advantage of it by buying low and selling high – when prices change!
You can make money on whether a currency goes up or down in value. The problem is that the Forex Market for the most part is unregulated and this is where the trouble starts. The con men will promise you that this is the easiest money you will ever make.
Let’s say you believe that the USD will get stronger, and it goes from 1.24739 and it goes up to 1.25739. That is a hundred pips, and let’s say you bet a dollar a pip. Well you just made a $100. dollars.
But, in the event price went down and not up, you just lost a Hundred dollars. And these markets tend to be very fast, and 90% of the people never make anything.
Biggest Scams Today?
I have talked about this in another post on this site, YouTube Has a sea of these Forex Guru’s that claim to make millions of dollars. They have all the flashy cars, homes etc.
They want you to believe that this is the easiest money ever made, and sell you a course for $997.00 and then you get in and learn that the system they promised that is the easiest money ever made. Turns out it is not that easy, and most of these folks will get you and your money into trouble fast.
So there you are without your $997.00 and what ever else you had to trade the markets. The CFTC has a similar list to exactly what i am telling you here.
I literally just wrote a blog about this Here
Forex Robot Trading sounds like it is to true to be real? and that is because it is. In the 16 years I have Traded the markets, I have seen hundreds if not thousands of folks fall for this.
The Con is that you spend the money for a algorithm trader that places all the trades for you. The problem is that if it was really this easy do you think they would share or sell this? NO, they would want to make the money for themselves.
Another scam is the one where a guy or firm tells you how to trade, promising a pair will go up or down in value. And you have to pay them monthly for this advice, promising that you will make all kinds of money.
These folks have been around for as long as I have traded, and the story always ends the same, folks loose thousands of dollars. Trust me when I tell you , if it was really that easy, we all would be rich.
Multi Level Trading
This is the oldest scam in the book, and as a matter of fact. They just arrested some folks out of India for a big scam you can read the story Here
Look folks this is not hard, If someone promises you that this is the easiest money ever made. RUN
Every year the CFTC, gets hundreds if not thousands of complaints. But the fats still remains, they got your money and you got nothing.
If you want to trade the forex markets and enjoy doing so, read up on things from this blog or ones like this. There is a bunch of free information out here on the net. And tell a friend 🙂
Conclusion on forex scams
With the internet and all of it’s information, you have to be careful. The last thing we want is for people who come here looking for a legitimate trading system or method will find one that turns out to be an old forex scam.
Never let desperation get the best of your common sense when seeking ways to make money. Forex scams are not new because as long as humans exist there will always be those who take advantage of other humans suffering from poverty.
Get educated on the forex markets, and then trade. Never let your financial desperation dictate your future.
David Is A Sixteen Year Veteran In The Forex World. He Gives His Advice On What Works And What Does Not.