Forex Trading Education - Avoiding Scams

Forex Trading Education - Avoiding Scams

by Harold Hsu

If you've spent some time searching the internet for Forex trading resources, chances are that you'll have come across at least one scam Forex trading product.
On the internet, there are countless scammers that try to tempt their 'victims' into buying their latest "trading system" that promises instant wealth. But as ridiculous as these claims may sound, there are people every day who unfortunately believe them.

Before you hand over your money to purchase another Forex trading product, try to avoid websites with these characteristics:

Tell-tale sign #1 - "Guaranteed Profits"

I'll say this now: any website that promises you guaranteed profits is outright lying.

You see, even if such a system did exist, chances are you wouldn't be able to afford it as a typical retail trader. There are many people more powerful and richer than you who would pay to keep this system to themselves. I'm sorry for being blunt, but it's the truth.

So please, if you're considering forking your money over for a 'guaranteed profit' trading system, close your web browser and as fast as you can!

Tell-tale sign #2 - Signal-Generating Software

This is another obvious scam. There's no way on earth that any financial market can be predicted using a formula... and yet that's exactly what these software 'developers' claim that their software can do!

Let me just put it this way: if the financial markets could really be predicted using some sort of formula, don't you think the big investment banks would be using at least a variant of it?

The simple fact that the large institutional traders still have a job - and have not lost it to computers - is because all attempts to use software to predict human behaviour in the market have failed to produce consistent profits.

The Best Way To Trade

Many people don't like to hear this, but unfortunately the best way to trade is to LEARN how to trade for yourself. Developing your own trading system is a tough, but highly rewarding experience.

Don't sell yourself short by spending any money on 'get-rich-easy' schemes... you'll be better off in the long run.