Sunday, July 11, 2010

Beware! Online Forex Scams


Forex Special I would like to dedicate today’s post to a warning and a very common scam, recently a lot of people even in the news have discussed this as it is something all over the world. Even large institutions had ‘scandals’ this year of this type of ponzi schemes. This especially subjective to the novice trader with little knowledge and eager to get some profit online and the beginners who can get carried away very easily with good positive news and can get victimized faster then the more experienced trader which might be, not always, able to understand that there is something wrong behind a too good to be true statement or claim.

Have you ever heard of managed accounts? Well if you have not still beware. These are people who can try to get themselves accepted in the overall online forex society (could be other trades but since we are talking about forex) in order to generate popularity, trust and in order to generate followers. At some point they come up with ‘a system’ to make money easy and fast, possibly very high % returns in short time frames and claim everyday that they are making loads on money out of it and they are ready to share it with all. Usually they would publish trade information (past ones of course) and screenshots to help the believing into their trading system and methods work very well and are able to generate profits all the time.

Once the profits grow people would tend to ask for help into making money from forex or this new system being discussed with this system! Possibly people would then ask the magic question: “would you handle my online forex trading account with yours? At a fee of course I am ready to pay!” and the ponzi scheme starts here. Just for a few people I will manage your account they would say!

At this point the scam starts building up. People would invest into opening an account with this person/s and all end up into a huge ponzi scheme! I hope you know what a ponzi scheme is by the way but if you do not in a very short manner it is when people get paid via new people being enrolled into the system.
Once this grows out of hand it would typically burst and crash all the people involved into the ponzi scheme putting down all the savings and money people had worked very hard for!
So beware of easy money promises! Work hard and trade with your mind in order to make money, consistent small profits get you to the ultimate target.

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