The Truth About Forex Scams
What makes for Forex scams? A lot of people think that any Forex trading system, informational product or service which fails to make them rich beyond their wildest dreams overnight must necessarily be a scam. These are generally the same people who flee from get-rich-quick scheme to get rich quick scheme, constantly disappointed because they fail to get rich. These people are unwilling to spend ay kind of time or effort learning how to make a product or service work for them and they just accuse them of being Forex scams. There is no such thing as a system which will make you rich overnight. Think about it for a minute ? if there was such a thing, wouldn?t we all be using it already? This system would also not continue to work so well for long ? it?s a matter of elementary 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.
In the currency trading field, there are losses taken by people and financial institutions which are unknowledgeable or unconcerned with the fluctuations in the global currency markets. Importers and exporters cannot usually afford to wait for ideal currency exchange rates to schedule payments. Those taking overseas vacations similarly cannot let these factors dictate their schedule. It is simply not possible for everyone who gets involved in the Forex market to make money.
So when you are in an internet forum and you are trying to decide whether negative comments that you read about a product are really a sign of a scam, it is useful to picture the situation happening in the real world, i.e. offline.
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 It might be that the methods in the book were out of date, or they might not be suitable for you for some reason.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.
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.
With the word ?scam? being thrown around so often, it can be hard to know what products are legitimate and which are not ? this makes people, already a little hesitant of buying online even more nervous. In many cases, products are accused of being scams simply because they didn?t work the way a customer expected. You may take their advice and not want to buy these products; after all, not every legitimate product is a winner ? but it would be wrong to call these products or services Forex scams. - 23218
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.
In the currency trading field, there are losses taken by people and financial institutions which are unknowledgeable or unconcerned with the fluctuations in the global currency markets. Importers and exporters cannot usually afford to wait for ideal currency exchange rates to schedule payments. Those taking overseas vacations similarly cannot let these factors dictate their schedule. It is simply not possible for everyone who gets involved in the Forex market to make money.
So when you are in an internet forum and you are trying to decide whether negative comments that you read about a product are really a sign of a scam, it is useful to picture the situation happening in the real world, i.e. offline.
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.
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.
With the word ?scam? being thrown around so often, it can be hard to know what products are legitimate and which are not ? this makes people, already a little hesitant of buying online even more nervous. In many cases, products are accused of being scams simply because they didn?t work the way a customer expected. You may take their advice and not want to buy these products; after all, not every legitimate product is a winner ? but it would be wrong to call these products or services Forex scams. - 23218
About the Author:
Author Jack Sawyer can help you find the best Forex Software. To learn Forex Trading Online go to http://www.forex-product-review.com.
posted by X - Men @ 2:56 AM
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