How to Avoid Forex Trading Rip-Offs

You want to dip into Forex trading, and you're a nice person, everything far from a schemer. You're out to teach yourself Forex trading, and you don't mind spending some money in order to learn what you must. All's good and well, except that there are a lot of rip-offs out there in Internetland-- not just targeting Forex trading, but every financial instrument available, at a price of anywhere from $67 to several thousand.

To avoid Forex trading rip-offs, your first step is to acknowledge the fact that there is free information all over the Internet-- lots of it. Forex trading, stocks and bonds, commodities: there are plenty of authoritative websites that will provide you with enough information to make you knowledgeable without hitting you on the head with a mallet and taking your money.

You'll want to Google the word "forex" or the phrase "forex trading" and begin investigating websites, until you compile a list of Forex trading websites that are eager to provide you with the education you seek-- for free. The old adage from the Bible comes to mind: "Seek and ye shall find!"

While you are searching, you will undoubtedly encounter websites that are willing to sell you a piece of the sky with sure-fire software and trading strategies guaranteed to make you wealthy beyond belief, provided that you accept their disclaimer that past performance is no guarantee of future success.

Rather than tackle each individual product being peddled, let's have a look some deadly sales pitches that might just make sense when you find yourself in the unavoidable predicament of being hungry for knowledge.

The Deadly Sales Pitches

1. "We've taken the emotion out of Forex trading." This kind of sales pitch promotes a product that delivers absolutely rigid, mechanical wisdom. No way that you can jump the gun with optimistic anticipation and enter a Forex trade too soon. No way that you can panic and exit a trade too soon on a minor reversal-- or exit a trade too late because of greed. The product, system, software or strategy, tells you what to do and when to do it. In no uncertain terms. Forex Trading For Robots, if you will. There is generally plenty of back-tested data to support the product. Never mind that you can nudge just about any formula to show a profit on canned data.

2. "I've cracked the Forex trading code." Most "cracked the secret code" sales pitches prey on the very human desire to possess secret, special knowledge in order to excel at a given task or profession. The Forex trading curve can be a steep one, hucksters will warn you, and the "secret code" which they are willing to share with you will save you time and effort. Did you know that the price being charged for the "secret code" is peanuts compared to the fortune you stand to make? If you didn't know this when you started reading the sales pitch, don't worry. You'll be reminded several times throughout the web page.

3. The Wounded Samaritan. When you run into this sales pitch, you've found an individual who has taken some mighty heavy blows in Forex trading. Not recently, either. No. No. No. For years, the Wounded Samaritan has suffered huge monetary losses, making every possible mistake that Forex trading will allow. One day the Wounded Samaritan hit rock bottom. He/she was finally willing to throw in the towel and abandon Forex trading altogether. Then it came! A sudden moment of illumination! Everything wise about Forex trading came into perspective. The money started rolling in!

Nowadays, as a way of saying thank you and "giving back", the Wounded Samaritan is willing to share the precise techniques that turned him/her into a Forex trading master. Gladly, the Wounded Samaritan would share the love at zero cost, since he/she makes plenty of money from Forex trading alone. But many would take advantage of this generosity. And you wouldn't appreciate it for free-- would you?

Conclusion

Beware of the deadly sales pitches as you search the web for valuable free information. There is no magic formula or ultra-expensive software that will turn your Forex trading into a winning proposition. Banks and financial institutions are under the gun to show profits when trading currencies. Do you think they rely on cracked codes or magic software? The answer is no. They do not. Banks and financial institutions approach Forex trading by paying close attention to proven financial indicators, and relying on timing entries and exits based on being familiar with how specific Forex currency pairs move.

Resist the desire for shortcuts and special secret knowledge and you will avoid Forex trading rip-offs and other investment rips-off that populate the Internet. Avoid any product associated with the 3 deadly sales pitches. Realize as you broaden your education in Forex trading that learning how everything works is only part of the Forex trading learning curve. The most important part of your journey for Forex riches is watching the Forex currency pairs in motion, as they are charted across several time frames (the 5-minute chart, the 15-minute chart, the 1-hour chart and the daily chart). There is no software, product or formula that can spare you that.