I’d be hard pressed to imagine how any prospective trader, looking for educational materials, could avoid stumbling on to at least one website offering trading secrets and systems that will enable the small investor the means to amass an incredible fortune trading the forex in a very short period of time. The Commodity Futures Trading Commission and National Futures Association are trying to find a way to reign in the hype but are confronted by a number of legal impediments and jurisdictional issues that I personally think will make enforcement a virtual impossibility.While they’re trying to work out the details, here are a few sure fire clues that a website promoting forex trading isn’t on the up and up.
Clue 1. The website is limited to a single page that scrolls to Antarctica.
Clue 2. Key text elements, written to evoke a positive emotional response, are often highlighted. The worst of the lot highlight text in a fluorescent yellow.
Clue 3: The site reads like a child who is giving a parent the top 100 reasons the family “needs” to visit Disneyland this weekend - “And we can ride Dumbo, and, and, and......”
Clue 4: The site reports to provide "unsolicited" testimonials from a score or more, faceless individuals like “Bob B, Kansas City”. Really now...when was the last time you read a bad testimonial? Even more to the point, when was the last time you bought anything and then took the time to write an unsolicited testimonial on the provider’s behalf? What's that you say? NEVER?
Clue 5: Exaggerates the positive potential. Here’s an example which appears on a site offering forex educational materials. “It's possible to turn $300 into $30,000 and achieve financial freedom in as little as six months!” Trust me on this. The odds of turning $300 into $30,000 even in a year are astronomical. I guarantee those who pursue that dream are among the 85% of forex traders who lose everything and most likely in a month or less.
Clue 6: The site only talks about success, not failure. Even with the best training and trading strategy (and they are out there) you’re going to suffer losses but that’s hidden in the small print or not mentioned at all.
Clue 7: You buy into the program. Follow the provider's instructions. Lose everything in a week or less.
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