Published On: Wed, Nov 21st, 2012

Defending yourself against Binary Options Scammers

By Terry Allen

Scammers are egotistic people who are very skilled at recognizing and manipulating the weaknesses of new traders. Although professionals are proficient at countering their scamming tricks, unfortunately most newbies are not. Scammers know exactly how to draw their attention by concentrating on their aspirations, dreams and gullibility.

You simply cannot underrate scammers because they are expertly accomplished in the art of trickery. As such, most binary options beginners are easy targets for them. As statistics demonstrate that novices are conned out of enormous amounts of money every year, you must, as a priority, acquire a solid understanding of the defensive techniques that experts utilize in order to safeguard themselves from scammers.

During these present challenging economic times, many individuals have been seeking methods to earn extra revenue. Quite a number were lured to binary options mainly because of their simplicity which makes this form of trading easier to implement than other popular investment types.  Beginners mistakenly think that they have outstanding opportunities of attaining easy profits quickly. However, many of them fail to realize that they still need to successfully conquer quite a steep learning curve in order to secure worthwhile returns on a consistent basis.

Upon finally grasping the full consequences of their situation, many novices then seek alternatives instead of tackling the intricacies of this subject head-on. Those who do adopt such a policy can quickly fall prey to scammers. You must realize that in many cases, scammers are just unsuccessful investors who are searching for methods to make their pitiful efforts at trading look meaningful. One of the key attributes of a scammer is that they have a solid understanding of the psychology of novices.

In fact, many scammers may have attained the pinnacle whereby they might have even attempted to develop their own binary options trading strategies. They could have even enjoyed some early success by acquiring profits for a limited period. However, over the long haul many would have suffered badly as they simply did not have the skills or knowledge to crack the many intricacies of binary options trading. If you now grasped that the many scammers have founded the designs of their robots and other automatic products on their own defective trading strategies, then you will instantly appreciate why hardly any of these tools function properly.

As such, if a binary options robot or device appeals to you then you must perform a thorough due diligence on its marketing literature by scanning for any unsustainable performance specifications. For example, you should check for emphatic declarations such as ‘our device will double your equity in five days’ or ‘do you want to acquire a secret that will make you a millionaire in no time at all’. As such assertions are almost impossible to attain in reality, you can rapidly conclude that you are dealing with a scam.

You should also search for proof of performance. For instance, are you able to validate any of the device’s description before you make a purchase? If not, and if instead, you discover that you are studying nothing more than just a long drawling sales letter, then you are well-advised to reject the tool as another scam.

Scammers will try to lure you by deploying astonishing advertisements utilizing keys words that possess strong marketing impressions. For example, as the word ‘secret’ is a particular preference, watch out for headings such as ‘the five secrets that binary options professionals have not told you’ or ‘these secrets of binary options trading will stock you’.  The only major secret that scammers possess is how they manage to produce such enormous qualities of rubbish. If you have any concerns whatsoever, then do not buy.

Unfortunately, many beginners suffer quite severe despondence after reality crushes their pre-conceived and naïve notions about binary options trading. As a result, they then have a tendency to search in desperation for any magical or quick solution that can resolve their problems and get their trading career back on track. In doing so, novices then make themselves very vulnerable targets for the many scammers who pollute the financial markets.  You are therefore wise to appreciate quickly that the trading arenas are feeding grounds for the scammer and must learn to defend yourself accordingly.

Share Button

About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.