How Not to Lose Money Enrolling in an E-currency Trading Program

by Prestplan

Every day brings a new and more exciting way to make money online. If you believe the dozens of advertisements that bombard us everyday, all of us should be millionaires. Why aren't we? Because 95% of the offers to make you rich are pure nonsense.

The latest scheme involves an old idea made new again. In the late 1990's millions of people lost billions of dollars when they discovered the lure of fast, easy profits from day trading. The rebirth of that idea is E-currency trading. Quickly becoming the darling of the online scammers, there are multiple sites offering the perfect trading system to make you rich while you sleep. These schemes are also called Forex trading systems. Forex, of course, stands for trading in foreign currencies.

E-currency trading is not new. It is however, enjoying a new popularity as more and more programs are being offered for sale. These programs, which range in price from $300 to $800 promise to train the investor to make high profits by trading in the foreign exchange markets. As with most other scams, there is always some expert who will tell you which program is the real deal. Don't believe any of them!

According to the Wall Street Journal, the average individual who purchases one of these systems, loses about $15,000. A typical program promises that if you will invest $200 to $5000 in the system, you will make thousands of dollars in profit in just a few weeks. Of course, the more money you invest the faster you will become rich. It's not going to happen.

Prior to the availability of the internet as a trading portal, individuals could only trade in currency through banks or reputable brokerage firms. But with the use of the internet by individual to trade, there is very little control by government regulators. The U.S. Commodity Futures Trading Commission is charged with the responsibility of regulating the currency trading industry. But it is difficult for them to find the online sites that are responsible for the majority of the fraud and responsible for the losses suffered by individual investors. In the last 5 years, the Commission has prosecuted about 80 cases on behalf of about 23,000 individual investors. Those investors lost over 350 million dollars.

Some of the so-called experts will tell you that there is an even better system for making money than an E-currency program. They will encourage you to join an arbitrage trading program. The wonderful difference is that you can buy this program for a mere $139.

Arbitrage is simply a financial word which means taking advantage of a price differential between two or more markets. E-currency trading is simply arbitrage of currency markets. They are the same thing. The scammers will tell you that arbitrage trading has been around forever as if that makes it safe.

It has been around for years because banks and investment companies have professional traders who devote their full attention to trading foreign currencies. A few experts can arbitrage the foreign currency market for large gains. The individual is always under capitalized and could never compete with large financial institutions doing the same kind of trading.

The simple fact is that if you want to try E-currency trading or foreign exchange arbitrage, understand that it is a very high risk strategy. The only funds you should ever use for this kind of investment are funds that you can afford to lose.

There is one more consideration. Many of the early guru's of Forex or E-currency trading have been prosecuted and even gone to jail. If you are invited to join such a program and offered the opportunity to enroll others in the program, you may be putting yourself at risk of prosecution for fraud. Today I counted more than two dozen different Forex or E-currency trading sites to entice individual investors. Do yourself a favor. Stay very far away from all of them.

About the Author

Sheila Guilloton is the owner of Prestige Planners and specializes in researching online scams. Read more at http://www.PrestigeBusiness.homebiztruth.com

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Forex Robot Software - Are They Just the Latest Internet Investor Scam?

by richpowerman

If you have ever tried your hand at investing in the multi-trillion dollar Forex marketplace, when you look at all the variables needed to place reliable and rewarding trades, how many times have you thought to yourself if there was a way of computerising all of these variables, so trading becomes foolproof and rewarding?

Have you also had this thought that if you could get a bunch of software code to place your trades, you could really cut out all the concentration and learning that most people go through to become expert traders?

Well, consider this, if you wanted to become a brain surgeon, do you think that you could short - circuit years of mental and physical training and practice and operate on your best friend tomorrow - perhaps not!

Now, Forex Robots, or Expert Advisors (EA's) do have their place, as long as you have had some instruction in Forex trading, and you have the right mentality to even approach this massively rewarding, but terribly unforgiving, form of investment.

First of all, lets look at what a Forex Robot is, and how it is usually used. One of the most popular trading platforms in use by many of the top Forex Brokers is known as the Meta 4 trading platform. This platform has its own unique software tools that enables clients using that Broker to either create their own 'Expert Advisors' or to buy one of the many available on the Internet, and simply install it on their Meta 4 broker station. They just set it running, and Bingo! They are trading automatically!

The trouble is, you are then totally at the mercy of some remote programmer, who may have been given a good idea by an expert trader to turn into an automated solution, but even then, the expert would have probably used this routine for certain market conditions, and either switched it off and traded manually during difficult market conditions, or just tweaked his parameters as and when necessary.

When you look at the ever-expanding range of Forex Robots appearing on the internet, all making fantastic claims of turning you into a millionaire in under a year, and all costing around $95 for an outright purchase, who do you really think is making all the big money.

I would suspect that the authors of all of these expert advisors are sitting quite pretty, as once your name appears on a 'Forex Interest' list, you will probably get a new promotion every week!

This is not to say that Forex Robots don't have an important part to play in assisting traders to make a little extra income. In fact, there are two types that are usually of great assistance to the average trader, and even 'armchair' Forex investors.

The first type is where they are used to assist traders to extend a particularly trade, as opposed to identifying a good opportunity.

For instance, I use a very good proactive charting system to identify trades, and when I place a trade, to maximise on its success, I will often use a Robot to help me progress the trade. If I enter a particularly good trade, that may go on for hundreds, or even thousands of pips ( I wish), then rather than use a trailing stop, and a fixed 'Take Profit' point, I would rather move my stops manually, and also move up my take profit pointer.

I have a very good EA that I can use that is brilliant at just that sort of constant manipulation, so I don't have to spend days staring at my screen, and possibly losing out right at the crucial time when I just have to sleep!

The second type I find very useful (and usually highly profitable) is a combination of a Forex Robot, in conjunction with a paid subscription for a managed service that will change the parameters as market conditions dictate.

Forex Robots have their place in this lucrative market, but like all tools, they must be used with a little caution. Always try and see if there is an active user group for the Robot you want to play with.
Bear in mind also that there is no real substitute for a bit of hard work and learning techniques to make a really great Forex income.

Try it - and be impressed.

About the Author

Getting involved in Forex can be fun , if you do it the right way.

Want to learn, earn or invest in Forex, then this fre.e 20 page report is a MUST! It explains

Forex Robots,

Forex Funds, and even Trading Apprenticeships.



http://forexmastergroup.com/invest

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The Truth About Forex Trading

by angelheld

Forex trading is all about putting your money into other currencies, so you can gain the interest for the night, for time period or the difference in trading money all around. Forex trading does involve other assets along with money, but because you are investing in other countries and in other businesses that are dealing in other currencies the basis for the money you make or lose will be based on the trading of money.

Constant trading is done in the forex markets as time zones will vary and the markets will open in one country while another is near closing. What happens in one market will have an effect on the other countries forex markets, but it is not always bad or good, sometimes the margins of trading are near each other.

A forex market will be present when two countries are involved in trading, and when money is traded for goods, services or a combination of these things. Currency is the money that trades hands, from one to another. Often times, a bank is going to be the source of forex trading, as millions of dollars are traded daily. There is nearly two trillion dollars traded daily on the forex market. Should you get involved in forex trading? If you are already involved in the stock market, you have some idea of what forex trading really is all about.

The stock market involves buying shares of a company, and you watch how that company does, waiting for a bigger return. In the forex markets, you are purchasing items or products, or goods, and you are paying money for them. As you do this, you are gaining or losing as the currency exchange differs daily from country to country. To better prepare you for the forex markets you can learn about trading and purchasing online using free 'game' like software.

You will log on and create an account. Entering information about what you are interested in and what you want to do. The 'game' will allow you to make purchases and trades, involving different currencies, so you can then see first hand what a gain or loss will be like. As you continue on with this fake account you will see first hand how to make decisions based on what you know, which means you will have to read about the market changes or you will have to take a brokers information at value and play from there.

If you, as an individual want to be involved in forex trading, you must get involved through broker, or a financial institution. Individuals are also known as spectators, even if you are investing money because the amount of money you are investing is minimal compared to the millions of dollars that are invested by governments and by banks at any given time. This does not mean you can't get involved. Your broker or investment advisor will be able to tell you more about how you can be involved in forex trading. In the US, there are many regulations and laws in regards to who can handle forex trading for US citizens so if you are searching the internet for a broker, be sure you read the print, and the information about where the company is located and if it is legal for you to do business with that company.

About the Author

Caterina Christakos is an experienced investor and published author. For more information on how to trade currencies go to:

http://forexandcurrenciesexplained.com

Article Source: Content for Reprint

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