Published On: Mon, Dec 10th, 2012

How to Identify Forex Scams

In order to provide you with protection from scammers, let us now analysis a number of sections taken from a scamming script that was used to produce a recent Forex webinar. Each one will be displayed in blue text and will be followed by comments from a forex professional trader.

Anthony:    Hello and welcome to our webinar today on the four steps to scalping the Forex. Today we’re going to learn all about how to harness the power of high probability scalping to boost your trading profits in just 60-90 minutes a day. So hello, welcome again. My name is Anthony and joining me today also is Jason, of course, the developer of the scalping system that we’re going to be talking all about today. So we’re really excited to have you on board here today. I’m excited to be hosting the webinar today and of course very excited to have Jason on as well.

Jason:        Okay, thank you, Anthony. Hello, everyone, welcome to our webinar on scalping today. If you can hear my voice and see my screen please type Y or yes for me. Okay, great, looks as if they can hear me, Anthony.

Expert Comment

As you can see, the format of this particular script takes the procedure of an interview between a presenter and a ‘so-called’ forex expert. The script contains about 40 pages using a ‘we are all mates’ approach. The first point that you need to realize is that Anthony and Jason are totally fictitious characters who do not exist in real life.    

Anthony:    If you are wondering why you have not heard of Jason before then that is because he’s not an author or speaker. He doesn’t run around trying to get onto CNBC or do a dog and pony show up on stage like so many others do because these guys are more professional marketers. Jason is a professional trader and that’s what Jason does.

Expert Comment

This would be good if it was true but the real reason why you have not heard of Jason is that he does not exist. The script for this webinar rambles on for many pages with the intent to make you feel at home.

Jason:        Thank you, Anthony. Well my wakeup call was actually a wake up; I woke up out of sleep and had pain in my chest, thought I was having a heart attack, woke my wife up and we went to the emergency room. During that time in my life I had been trading part time for a very long time at that point, doing system development, but the job I had kept me fairly busy.

Expert Comment

In the above text, Jason has now reached the point whereby he is trying to pull your heart strings by discussing a serious health problem.  Of course, none of this is true and is just a way to create the illusion that he is a wonderful person who suddenly had a calling to trade Forex successfully.

Jason:        You can place trades and walk away. Trade in 10-20 minutes a day. If you know the market and there’s no big secret about this. You can go in and trade for 30 minutes, an hour and be gone. You can set up your day trades in five to ten minutes and walk away from them and come back the next day and check those. So it doesn’t have to necessarily be sitting in front of the computer 12 hours a day staring at charts; that’s not my goal as a trader.

Expert Comment

Well we are now about one third through the script before our new best friend Jason decides to elaborate on his super Forex trading strategy. If you analyze his comments carefully, you can deduce that they are all superficial and are meant specifically to convince novices just how easy trading his strategy will be for them. However, there is no technical substance. You cannot just base a strategy on times that are ‘hot’ or trade for 30 minutes or an hour and be gone. As this script continues, the technical content does not improve to a point that you would extract a serious specification enabling you to perform an independent audit on its content and performance.

From analyzing the above script you can conclude that scammers are very proficient at what they do. As such, you must attempt not to get taken in by their ploys.

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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.