In Singapore, you may have come across many Forex seminars. You learn a thing or two, and throughout, will start hinting about their sales pitch.
There is absolutely no harm attending these seminars, HOWEVER, watch out for certain red flags that could signal a shady product, and protect your hard-earned money from it!
#1. The investment promise: “Give me X amount and I will give you X% of returns”
Real Forex traders will not ask you for money. Note that something is wrong when at the end; they ask you for money to invest in them with a percentage of returns that could range up to 200%-300% monthly.
If it sounds too good to be true, that’s because it’s usually not the case. Besides, if a Forex trader is truly successful, he wouldn’t need your money so desperately anyway.
#2. The high return promise: Overnight millionaires
“Become a Millionaire in 30 days!” Familiar? In a world where inflation is increasing rapidly, we all want faster ways to make money to beat inflation.
Unfortunately, some people take advantage of this knowledge to try and rope in potential customers by selling them over-hyped programs.
Professional hedge fund managers make 20%-25% returns per annum, and for the retail trader, 20%-25% is considered to be doing well… And this is with proper risk management of 1%-2%. The only way you can earn a million dollars overnight is if you risk almost a million at the same time.
Do you dare risk that amount of money? You can learn more about how a REAL Forex trader manages his risk by clicking this link.
#3. The risk-free promise: All wins! Zero losses!
No-one likes to hear that they are going to lose… But in all honesty. Even successful Forex traders lose money! But… their wins outweigh their losses.
This is because of professional money management strategies that allow them to protect their money from going to zero. So why do some advertise their courses as 100% wins? It is so that they can appeal to people who don’t know anything about Forex.
“A winning strategy must include losing.”
In addition to how the Forex trader claims to win, it is as important to know how he will lose. How he manages his losses and stop his money from losing more than he wins.
So don’t fall for 100% wins but get deterred by promises of only 70%-80% wins. The latter is more believable. Discover some consistent strategies by clicking here.
#4. The miracle-software promise: Magic money-making robot
So what you are saying is… a program can automatically generate money for me? Sign me up! NOT.
In an era of technological advancements, it is true that there are automated ways to trade.
However, the Forex markets are ever-evolving, and changes according to the economic situation of every country.
Perhaps at one point, that robot may have worked for a particular period of time but it will soon get outdated. Don’t waste your money on this.
#5. The 100% winning signals promise: “Just follow my (paid) signals and copy my profits!”
Similar to companies selling robots, some will sell signals to you. Goodness knows how these signals are generated but the company claim that they used those signals themselves to open a trade.
It’s hard to tell how reliable these are but it’s best not to risk your hard-earned money and be over-reliant on nearly blind entries.
Instead of risking your money to purchase products that could potentially lose you money, it’s much better to invest in yourself, in your education.
Because as a human trader, we have much greater potential to evolve and adapt to the markets. Discover how you can inherit the best traits of a real-life professional trader by clicking here.