The Truth About Forex Scams
So what are forex scams? Some people jump to the conclusion that anything that doesn't make them rich overnight is a scam. They do not want to have to spend any time developing skills - they want something that works like magic, without putting in any effort at all. That's clearly crazy. If such a thing existed, everybody would be using it ... and when you think about the economics, even if something like that was invented, it wouldn't be effective for very long.
The fact is that the money you make has to come from somewhere. Technology can improve our methods of producing goods so that everybody's standard of living improves and everybody becomes richer in real terms. However, when you are trading, gambling or doing anything else that involves 'pure money' without any goods or services being produced, then for one person to gain, another person or institution has to lose.
It is true that in currency exchange, some of the bad prices are taken by people or institutions who either do not know or do not care. Businesses who import or export goods rarely bother to try to schedule their payments for a moment when the currency rates are favorable. People taking a vacation overseas are the same. Nevertheless, there are so many people and institutions in the 'pure' forex market these days that it is simply not possible for everybody to make money from forex trading.
The next time you?re reading through a web forum on the topic of Forex and you?re trying to decide whether or not the negatives you?re reading about a given product or service mean that it is one of the Forex scams, you should think about how things work in the ?real? (offline) world.
Suppose you go to the bookstore and pick up a book on Forex trading. You find that the techniques given in the book do not work out in your case. It can be that the information here is out of date, or there could be any number of other reasons why this book didn?t give you the results you had hoped for. You may have learned a little and simply decided that this book wasn?t the answer for you ? you wouldn?t storm into the bookstore and accuse them of being a scam.
However, if this same bookstore was urging people to pre-order a new book which they were hyping up and you were to show up on the day of sale to find the bookstore had closed up and the owners skipped town; now that would be a scam.
A scam is a completely fraudulent business activity which is created with the intention of swindling people. A scam is by definition illegal ? if a product or service is offered in good faith, it is 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. - 23162
The fact is that the money you make has to come from somewhere. Technology can improve our methods of producing goods so that everybody's standard of living improves and everybody becomes richer in real terms. However, when you are trading, gambling or doing anything else that involves 'pure money' without any goods or services being produced, then for one person to gain, another person or institution has to lose.
It is true that in currency exchange, some of the bad prices are taken by people or institutions who either do not know or do not care. Businesses who import or export goods rarely bother to try to schedule their payments for a moment when the currency rates are favorable. People taking a vacation overseas are the same. Nevertheless, there are so many people and institutions in the 'pure' forex market these days that it is simply not possible for everybody to make money from forex trading.
The next time you?re reading through a web forum on the topic of Forex and you?re trying to decide whether or not the negatives you?re reading about a given product or service mean that it is one of the Forex scams, you should think about how things work in the ?real? (offline) world.
Suppose you go to the bookstore and pick up a book on Forex trading. You find that the techniques given in the book do not work out in your case. It can be that the information here is out of date, or there could be any number of other reasons why this book didn?t give you the results you had hoped for. You may have learned a little and simply decided that this book wasn?t the answer for you ? you wouldn?t storm into the bookstore and accuse them of being a scam.
However, if this same bookstore was urging people to pre-order a new book which they were hyping up and you were to show up on the day of sale to find the bookstore had closed up and the owners skipped town; now that would be a scam.
A scam is a completely fraudulent business activity which is created with the intention of swindling people. A scam is by definition illegal ? if a product or service is offered in good faith, it is 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. - 23162
About the Author:
Author Jack Sawyer has some great suggestions on finding the greatest Forex Software. To learn Forex Trading Online go to http://www.forex-product-review.com.
posted by X - Men @ 1:22 AM
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