Six (6) Pitfalls That Will Make You Fall to Scams and Seven (7) Ways of Avoiding Them


The Forex market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all it very quickly. The CFTC has witnessed a sharp rise in Forex trading scams in recent years and wants to advise you on how to identify potential fraud. - http://www.cftc.gov/ConsumerProtection/FraudAwarenessPrevention/CFTCFraudAdvisories/fraudadv_forex


Scammers and scam victims are like the animal planet scenario - (Predator and Preys). The preys are most times new born, defenseless, attractive, naive, weak, gullible, and adventurous, while the predators are fast, well armed, crafty, aged, and nocturnal in nature. The predators preferred mode of attack is ambush and lure traps. 

Some animals are sensitive to the presence of predators, and their likely attack setups. The herds or flocks guide their young for a specified period of time until they are old and strong enough to sustain themselves in the wild.


The Forex Market is one of the most dangerous Financial Wild Reserve Park amongst other Financial Investments. The predators here are constantly developing intelligent schemes to rip off unsuspecting clients daily. The methods being used today by scammers are dynamic and much more alluring when compared to schemes used in previous years.

See: Scam cases filed in ForexPeaceArmy Trader's Court

Extensive research on scam patterns revealed some common tricks scammers deploy to catch their victims, and also pitfalls most victims of scam are prone to.

The Six (6) Pitfalls that can make you fall to Scam 
1'st Pitfall
Lack of in-depth knowledge of Forex Trading in regards
      to:
       a. How it operates 
       b. Mechanisms behind Forex Systems (EAs, Indicators,
           & other tools)

       c. Risks and rewards involved.


2nd Pitfall
Not conducting thorough investigation of a Forex product before buying it is a dangerous pitfall. It is strongly recommended that you effectively investigate the actual claims or functions of a Forex product before committing your money. There are websites like www.forexpeacearmy.com which conducts Forex product testing, and user review ratings. You can also try out our FX-Probe (Investigator) Services.



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    3rd Pitfall
    Accepting offers from unverified emails, unsolicited emails, and spam mails is a sure way of falling victim to scam deals.

    4th Pitfall
    Impatience, greed and excessive desire to get rich quick without hard work. 

    5th Pitfall
    Asking the wrong questions about a product from the vendor can make you fall for cheap scam deals. Also getting wrong or deceitful answers from the vendor despite asking the right questions can make you fall to scam deals.

      See: The 10 right questions to ask your Broker

    6th Pitfall 
    Purchasing Forex products through unsafe or less reliable financial medium on the internet. Not all “30 day refund policy or 100% guarantee” are trustworthy especially when the vendor utilizes payment options, which do not offer customer security or refund policies. Unverified or poor security payment options are scammers choice for trapping their victims.  

         See: http://www.forexverified.com/refundpolicies.html


    These are the common pitfalls that can make you fall to scam deals. The most vulnerable pitfalls are most times not caused by the scammers but by yourself because the final decision or choice is taken by you.

    In the game of football it is often said that the best form of defense is attack. In Forex the best form of defense against scammers is avoiding them. 

    There are numerous ways to defend yourself from Forex Scams but not all the methods are efficient enough. Find out the Seven (7) efficient methods of avoiding scam deals based on my research on scammers cleverly concealed tricks and traps.
     

    Click here to find out more....

    SEVEN (7) WAYS TO AVOID GETTING SCAMMED

    1. Constantly update your knowledge about Forex. Devote time to research, and study of the financial market. The more facts and tips you acquire about Forex the lesser you can be deceived.  


    2. Always inquire about a product from popular, and reputable Forex forums before purchasing it. See samples of inquires below:

      • Has anyone used this product before and how long? 

      • What was your experience on the performance of the product in a demo or live account?  

      • What do you know about the developers or vendors?

      • Apparently answers to these inquiries are most times stated on the FAQ page of the vendor or developer’s website. However different user reviews outside the vendor’s website are more genuine. I strongly advise you visit at least three user review forums and compare your findings. I recommend www.forexpeacearmy.com as one of the best place to get unbiased reviews about a product. You could also try our FX-Probe (Investigator) Services.

    3. Carryout a personal test of the product with reliable strategy testing tools. Virtually all Forex products
      come with back tested results displayed on the vendor’s website or are included in the product’s package. It is recommended that you conduct your own
      test with optimized settings and turn on the visual mode in the strategy tester to see how the Expert Advisor works visually. To get the best analysis from your test, you’ll need at least 90% quality tick data, and very good strategy testing tools. I recommend using StrategyQuant’s Tick Downloader and EA Analyzer. StrateQuant's EA Analyzer produces more analysis than the conventional strategy tester on MT4 platform. You can get them here for free when you signup

    4. You need to be patient in Forex. Don’t be in a hurry to become like Warren Buffet in one year. 

    5. Do not respond to unsolicited emails from unverified vendors making an offer to buy a product. Most of such emails can be detected by their poor tenses and strange URLs. Do not click on the links in the email but rather type in the address on a new window in case you want to verify or investigate the source. I strongly advise you try out our Fx-Probe (Investigator) Services, which would help to decipher such strange offers. 

    6. If you sense something unusual about an offer, then don’t be the first to buy it instead request a demo license. Good products would always remain in the market, so you’ll have enough time to follow it, and see other user reviews before buying it.

    7. Be very careful with free trial offers. Most of them have hidden traps, concealed fees, and cunny motives at the end of the trial period.

    Let these seven tips be your guide, and you will be free from scams. An old parable says "prevention is better than cure..."






    Are you experiencing issues like these....

    My broker has refused to honour my withdrawal request for many months despite several emails and calls.......

    My account has seriously deteriorated barely three weeks since i opened a managed account. The managed account operator is not giving me any tangible reasons.......

    If you think you've been scammed or you want an investigation about your ordeal, file a complaint here: http://www.forexpeacearmy.com/traders_court/
    or request our free FX-Probe (Investigator) Service


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    About Onyebuchim C. Obike
    I am an IT specialist in Software Programming, Networking & Telecommunication. My quest for an alternative source of income led me into Forex since 2005. My encounter in Forex over the years made me to develop a site where traders can get reliable and effective Forex Resources & Tools, that would make them successful traders. I prefer combining Technical & Fundamental techniques in trading. Follow me on facebook: www.facebook.com/fxtradecity