Spotting A Forex Scam - Hands off that bonus by Peter Smith

I know that human nature is weird and that being greedy and excitable is perhaps a characteristic that is innate in most humans. However, if my bad experiences are a way to go by, then I have to warn all online retail forex investors that they want to have even the slightest chance to succeed, they absolutely have to be able to manage and put and curb on both their greediness and excitability.

Because they are both signs of weakness, they make you vulnerable and render you an easier prey for crooks. In fact, unscrupulous brokers are completely aware of this fact that they act in a concerted and targeting manner in order to take you for a ride.

Moreover, although it is basic and common-sensual, most of us get carried away when it comes to our trading decisions and tend to forget that if something sounds too good to be true then it most probably isn’t! This is exceptionally true of bonus offers often run by brokers to lure you to trade more and deposit even further.

But, alas, I fell for this trick as well as many others have also done. So, my number one advise to always refuse bonuses offered by brokers as these always come with strings attached. They come in parcel with specific terms and conditions, require specific – often unachievable- trading volumes to be accomplished, while you should always remember that it is not real money, but just a number in your trading account, and that it is not yours, even if it appears under your name.

The worst thing about bonus schemes is that they force you to enter the process of satisfying specific trading volumes in order to be able to cash out your balance and this in turn leads you to rush, frivolous, uneducated trading decisions guided mostly by the stress to quickly fulfill the necessary trading volume. Naturally, almost always, the results of such moves are catastrophic and lose to huge losses. This is what happened to me and a huge losing streak meant that my trading account was completely wiped out, not only the bonus money, but my initial $5.000 deposit and all the subsequent profits I had achieved….

About a year down the line and spurred by the recent highly volatile marker conditions I am tempted to re-enter the world of forex trading, but if I do so, I will make sure that this time around I wont pay any attention to bonus offerings and the like and I urge all of you to do the same.

Peter Smith

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