The Truth About Forex Scams
What are Forex scams? Many people mistakenly think that any Forex product or trading system which does not make them instantly wealthy is a scam. These people do not want to put in any time or effort on their own part. They want a magical, get rich quick system ? well, there?s no such thing. If there was, we?d all be using it and of course, this system wouldn?t work for long. It?s just basic economics.
If there is money being made, it is coming from somewhere. Unlike technological innovations which can create wealth through new production models, all currency trading is a zero-sum proposition. If someone is making money, someone else is losing money.
There are always losses being taken by individuals and institutions who are either unaware of the currency exchange market or cannot for one reason or another allow exchange rates to dictate their activities. You wouldn?t put off a vacation because of exchange rates ? and businesses also cannot wait for favorable currency exchange rates to import or export goods. It?s just not a possibility for each and every Forex investor to get rich ? simple as that.
Next time you?re trying to decide whether the negative comments you?re reading about a Forex product or system on web forums mean that it is really just another of the Forex scams, you should take a minute and think of how a scam operates in the offline world (remember that?).
Imagine you bought a book about forex from a bookstore, but the system described in it did not work for you. It might be that the methods in the book were out of date, or they might not be suitable for you for some reason. You would probably have learnt something, and you would just shrug and accept that wasn't the right system for you. You wouldn't go back into town and call the bookstore owner a scammer.
But if the bookstore was inviting everybody to pre-order a great new book on forex that was about to be published, and you and 1000 other people all handed over your cash, and the next day the store was closed and the owner had left town ... that is a scam.
A scam is a fraudulent business operation which is made to swindle would-be customers. These activities are illegal and not offered in good faith. However, any product or service which is indeed created with legitimate business intent is by definition not a scam.
People are very suspicious of buying online and you will often see the word 'scam' thrown around without much justification. Usually it is just a case of a frustrated customer trying to blame the product for his inability to be successful with it, or it might be something that worked at one time but is out of date or has been over-used. You wouldn't want to buy it except for historical interest but it wouldn't be right to call these systems forex scams. - 23167
If there is money being made, it is coming from somewhere. Unlike technological innovations which can create wealth through new production models, all currency trading is a zero-sum proposition. If someone is making money, someone else is losing money.
There are always losses being taken by individuals and institutions who are either unaware of the currency exchange market or cannot for one reason or another allow exchange rates to dictate their activities. You wouldn?t put off a vacation because of exchange rates ? and businesses also cannot wait for favorable currency exchange rates to import or export goods. It?s just not a possibility for each and every Forex investor to get rich ? simple as that.
Next time you?re trying to decide whether the negative comments you?re reading about a Forex product or system on web forums mean that it is really just another of the Forex scams, you should take a minute and think of how a scam operates in the offline world (remember that?).
Imagine you bought a book about forex from a bookstore, but the system described in it did not work for you. It might be that the methods in the book were out of date, or they might not be suitable for you for some reason. You would probably have learnt something, and you would just shrug and accept that wasn't the right system for you. You wouldn't go back into town and call the bookstore owner a scammer.
But if the bookstore was inviting everybody to pre-order a great new book on forex that was about to be published, and you and 1000 other people all handed over your cash, and the next day the store was closed and the owner had left town ... that is a scam.
A scam is a fraudulent business operation which is made to swindle would-be customers. These activities are illegal and not offered in good faith. However, any product or service which is indeed created with legitimate business intent is by definition not a scam.
People are very suspicious of buying online and you will often see the word 'scam' thrown around without much justification. Usually it is just a case of a frustrated customer trying to blame the product for his inability to be successful with it, or it might be something that worked at one time but is out of date or has been over-used. You wouldn't want to buy it except for historical interest but it wouldn't be right to call these systems forex scams. - 23167
About the Author:
About the author: Jack Sawyer has some great advice on finding the best Forex Software. For more information on Forex Trading Online go to http://www.forex-product-review.com.
posted by X - Men @ 5:47 AM
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