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There is one thing that always holds true regarding the stock market. And that is: “If it looks too good to be true then it is”.
Since lockdown the number of scams out there have rocketed.
The biggest scam of all going round at the moment is Forex trading.
The facts are nearly everyone loses over time.
The scam first came to my attention a few years ago when a young guy was pictured in a paper with a Ferrari claiming to have made millions from nothing trading Forex.
The whole thing was obviously a lie but it all looks so tempting. A year on, he was found guilty of fraud.
In 2020 with so many desperate people around needing quick money these types of scams have exploded.
At last newspapers are picking up on this and watchdogs have been asked to clamp down on influencers using false images of luxury lifestyles to sign up to FX platforms.
The Times said: “Some Instagrammers who claim to be FX traders are also selling “signals”, which are tips on when and what to trade. In one case, an influencer with nearly 150,000 followers is selling daily signals for up to £25 a month and claiming 89 per cent are successful.
The European Securities and Markets Authority says between 74 per cent and 89 per cent of retail investors lose money trading in FX markets.
Social media websites are littered with people presenting themselves as successful FX traders. On Instagram the hashtag #forextrader is linked to nearly seven million posts.”
Of course, these scams are very tempting with their lure of quick easy money.
Google has been asked to get rid of obviously inflated promises in various ads.
I would suggest a rule of thumb – if anyone suggests to you it is easy to make more than 25% on your capital in a year then it is definitely too good to be true.
Be very cautious about anyone suggesting you can make big sums from Forex or day trading. I don’t do either and I know if I had I would never have made my millions!
Be careful out there. The only way to make big money is slowly and patiently. If you get lured into trying to make big money guess what happens!
