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Forex Scam

  • #1
  • First Post: May 10, 2008 10:54am May 10, 2008 10:54am
I would be very much interested to know the opinion of the readers of this forum about the following Wikipedia article: Forex Scam.

As from my point of view, much of it seems very reasonable...
  • #2
  • May 10, 2008 11:06am May 10, 2008 11:06am
Quoting Nazar
I would be very much interested to know the opinion of the readers of this forum about the following Wikipedia article: Forex Scam.

As from my point of view, much of it seems very reasonable...
My opinion ... the article is right on the money (pardon the pun)
  • #3
  • May 10, 2008 11:28am May 10, 2008 11:28am
So what?

There are plenty of scams everywhere.
Now they offer a little device for $49 all over the internet that will make your car run on tap water, like by using a gallon of tap water you can increase your gas mileage by 70%.

Haa.

Nothing new here.

All that this means maybe pretty soon they will institute some draconian measures in forex like they did in stock market.
In stock market if you happen to do a couple round trades in one day and you are not up to par with regulations like having 25000 deposit on your account etc., they will then punish you and lock down your account for 6 months or something.

There are always those idiots out there who first get scammed then they run to the government to complain and the government doesn't give a s#%t they don't want to know who is right and who is wrong they just clamp down hard with some overreaching regulations so that nobody bothers them anymore.

Ant that's the end of it.
  • #4
  • May 10, 2008 9:54pm May 10, 2008 9:54pm
Quoting Nazar
I would be very much interested to know the opinion of the readers of this forum about the following Wikipedia article: Forex Scam.

As from my point of view, much of it seems very reasonable...
I'm sure the premise is accurate. That is, most people lose money and brokers intentionally tout the technique to make profit off of uneducated and gullible people with money.

However, I don't agree with the "zero sum" aspect of it. That's simply not the case unless you eventually "close down" Forex trading and all open positions. It's not the case unless you have an equal number of people with equal number of lots going long and going short. It's not the case unless you believe there is an equilibrium that price eventually needs to land on. Let's pretend 60% of all traders are going long on EUR/USD while 40% are going short. The basket moves up ten pips. The net effect is... 20% of the people make money and the other 80% are a wash. Let's pretend some of those 20% now closed down/sold their positions. They profited. The people who now entered the market bought at a different price than they did, but still never lost anything.

It's a very interesting read. It reinforces the notion that you can't beat the market, you can only outsmart the players.
  • #5
  • May 10, 2008 11:33pm May 10, 2008 11:33pm
All this is just noise money can be made in FX. The ones that do usually don't need to talk about it. Everything is noise. Learn to filter it out. All these strategies techniques etc backtests are all noise. And this is why people wonder why they don't make money. Listening to too much noise too much chaos a majority runs around in circles and do the same things over and over again. Besides Wikipedia? since when was that ever credible. When writing papers don't tell me your professors allow you to cite wikipedia as a source. Give me a break. Anything on the internet is fair game to be BS learn to believe in something and analyze things with strict scrutiny until it falls into your beliefs. Then everything will fall into place.
"Diversification is an excuse for a lack of talent" ~FXC
  • #6
  • May 10, 2008 11:36pm May 10, 2008 11:36pm
Quoting FXCapitalist
All this is just noise money can be made in FX. The ones that do usually don't need to talk about it. Everything is noise. Learn to filter it out. All these strategies techniques etc backtests are all noise. And this is why people wonder why they don't make money. Listening to too much noise too much chaos a majority runs around in circles and do the same things over and over again. Besides Wikipedia? since when was that ever credible. When writing papers don't tell me your professors allow you to cite wikipedia as a source. Give me a break. Anything on the internet is fair game to be BS learn to believe in something and analyze things with strict scrutiny until it falls into your beliefs. Then everything will fall into place.
FXCap -

To be honest, Forex has taught me that most things in life are just noise.....why wouldn't trading "advice, articles, forums, etc." be any different?

Once I understood this, a lot of things in life became easier. Too much is noise. The keys to becoming a successful trader are basically the same things that make people successful in life.

Great post mate.

Clockwork
  • #7
  • May 10, 2008 11:40pm May 10, 2008 11:40pm
Quoting TheWalrus
I'm sure the premise is accurate. That is, most people lose money and brokers intentionally tout the technique to make profit off of uneducated and gullible people with money.

However, I don't agree with the "zero sum" aspect of it. That's simply not the case unless you eventually "close down" Forex trading and all open positions. It's not the case unless you have an equal number of people with equal number of lots going long and going short. It's not the case unless you believe there is an equilibrium that price eventually needs to land on. Let's pretend 60% of all traders are going long on EUR/USD while 40% are going short. The basket moves up ten pips. The net effect is... 20% of the people make money and the other 80% are a wash. Let's pretend some of those 20% now closed down/sold their positions. They profited. The people who now entered the market bought at a different price than they did, but still never lost anything.

It's a very interesting read. It reinforces the notion that you can't beat the market, you can only outsmart the players.
the market can be beat. its just that most who do over do it so they end up surrendering their gains. all greed all emotion. it's all displayed on the charts. I bet some of you folks sit and look at the charts no trading and seeing the market moves and you thinking if only i entered at that point etc or exited. All chaos, gotta learn to make order.
"Diversification is an excuse for a lack of talent" ~FXC
  • #8
  • May 10, 2008 11:46pm May 10, 2008 11:46pm
Quoting clockwork71
FXCap -

To be honest, Forex has taught me that most things in life are just noise.....why wouldn't trading "advice, articles, forums, etc." be any different?

Once I understood this, a lot of things in life became easier. Too much is noise. The keys to becoming a successful trader are basically the same things that make people successful in life.

Great post mate.

Clockwork
As you can see I don't have many posts unless I feel I have to. Usually when I do it's when I have to speak my mind. I dont like recommending things giving advice and/or strategies because I dont need to divulge much of anything. Trying not to contribute to the noise as I would say. My strategy. Is to have none. That is one of the best things to know that most people fail to understand.
"Diversification is an excuse for a lack of talent" ~FXC
  • #9
  • May 10, 2008 11:51pm May 10, 2008 11:51pm
Here's a helpful post:

http://www.forexfactory.com/news.php?do=news&id=48805
  • #10
  • May 11, 2008 8:47am May 11, 2008 8:47am
It might be interesting for people here to know how leading Forex software vendors react to the info contained in the mentioned Wikipedia article.
I published the same short message (see above) on the Metaquotes (the authors of Metatrader software -- http://www.metaquotes.net/) official forum (automated trading systems, trade advisers development related topics etc.):
The message was published in English and Russian in respective forum sections. Within half an hour from publishing my messages were removed from the forum and my account banned without any explanation, notification or further discussion...
Well, my understanding is: if people earning their livelihood with Forex trading software (scams?) are so much afraid even to discuss the subject, then there must be a big deal of truth in what the article says.
Thank you.
  • #11
  • May 11, 2008 9:00am May 11, 2008 9:00am
the subject you're talking about has been discussed before, in fact there's a whole thread dedicated to it.

in short, you were banned from their forum, rightfully so.alarmist statements do nobody good, plus, there seems to be a specific category of so called "traders" that think their broker is always out to get them and under constant threat.these are usually also the same people that are appallingly bad at trading but oblivious to it...so they blame the other party, always.

a dealer plugin has to exist in order to manage orders with high speed and accuracy...there's no way you could actually put people to do that manually for each and every trader's order.
  • #12
  • May 11, 2008 2:14pm May 11, 2008 2:14pm
If someone is looking for easy money, he is usually vulnerable to frauds.
  • #13
  • May 13, 2008 4:08pm May 13, 2008 4:08pm
Quoting TheWalrus
I'm sure the premise is accurate. That is, most people lose money and brokers intentionally tout the technique to make profit off of uneducated and gullible people with money.

However, I don't agree with the "zero sum" aspect of it. That's simply not the case unless you eventually "close down" Forex trading and all open positions. It's not the case unless you have an equal number of people with equal number of lots going long and going short. It's not the case unless you believe there is an equilibrium that price eventually needs to land on. Let's pretend 60% of all traders are going long on EUR/USD while 40% are going short. The basket moves up ten pips. The net effect is... 20% of the people make money and the other 80% are a wash. Let's pretend some of those 20% now closed down/sold their positions. They profited. The people who now entered the market bought at a different price than they did, but still never lost anything.

It's a very interesting read. It reinforces the notion that you can't beat the market, you can only outsmart the players.
Welcome to the forum TheWalrus. You should post more often.
  • #14
  • May 14, 2008 8:04am May 14, 2008 8:04am
If you have been scammed or you know of a scam... report it to the reviews pages... make a quick search...
... All good things come to those who wait...
  • #15
  • Edited 11:38am May 19, 2008 11:32am | Edited 11:38am
Thanks everyone for participation.
I also agree that Zero Sum model is probably not fully reflecting the nature of Forex activity and its impact on the stakeholders. There's more to it.
I do believe that everyone gets from Forex what he/she deserves.
But it's a good idea to be very careful and not run recklessly for 'easy money'.
The figures and facts on the number of losers are most likely quite accurate and leave a lot to think about...

Regarding the Metaquotes reaction, I don't think it was a proper way to treat a customer. As from my point of view, banning a forum user for posting some debunking info is very rude and testifies the malicious intentions of the company. It's a pity they make such good Forex software...
  • #16
  • Jun 1, 2008 2:22pm Jun 1, 2008 2:22pm
ALERT)

http://www.scam.com/showthread.php?t=10263

Felix' sites are enticing.... beware.
  • #17
  • Last Post: Jun 2, 2008 8:15am Jun 2, 2008 8:15am
Quoting tdion
ALERT)

http://www.scam.com/showthread.php?t=10263

Felix' sites are enticing.... beware.
Uh......does Dimitri know you are calling him Felix?

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