Recognizing a scam.
Forex, much more than any other type of trading, is full of frauds and scammers.
One can start trading forex with $100. This makes forex a fertile field of naive newcomers ready to be separated from their money.
I have seen a number of con men come here- work their scams- then move on.
Jacko's take was reportedly in the millions. He based himself here at FF.
The mods work hard at weeding these people out and they do a excellent job of it. There are still a few that are wily enough to go undetected until it's too late.
Here are the major red flags you need to watch for:
1. A thread that's rules are not clearly stated or that change frequently.
Systems with clear, unmistakable rules do not generate long threads. If the questions are all answered in the first post, there is nothing left to post.
The con man needs long, fast growing threads to build followers. He needs ambiguity in order to make himself indispensable.
2. Claims of outrageous performance. No losers- 90% winners-
claims that you can start with $200 and make a living... etc.
This is necessary to attract the suckers and drive away experienced traders who might ask embarrassing questions. It is imperative that these claims cannot be verified. This is usually done by the con man's warning that discretion must be used in his system. Repainting indicators will also serve this purpose, as they prohibit backtesting.
3. Suggestions that there are secrets that have not yet been revealed.
4. The formation of a cult.
This is a necessary part of a scam.
The easiest way to spot this is by the "Guard Dogs" who form around the con man.
These are regular members of the thread who attack anyone who questions the con man or his system. In a legitimate thread, the OP, himself, will either refute the critics or ignore them. When a cult develops, the loyal followers feel they need to protect the master.
5. Moving the group off-site. This is the smoking gun!
Money cannot be solicited on the forum. It will cause the thread to be closed and the scammer banned.
The sheep shearing has to be done out of sight of the moderators.
The con man or one of his minions, will suggest a Skype group or trading room be set up.
This will quickly evolve into a trading fund or a subscription blog or trading room.
Have you noticed any threads that show these signs?
I see two in Trading Systems being run by the same man. He's been around here for years.
I see another one a few days old, that shows three or four of the red flags. Another one was recently moved to the commercial section.
My money's safe. I hope yours is. I just get out the popcorn and watch
Forex, much more than any other type of trading, is full of frauds and scammers.
One can start trading forex with $100. This makes forex a fertile field of naive newcomers ready to be separated from their money.
I have seen a number of con men come here- work their scams- then move on.
Jacko's take was reportedly in the millions. He based himself here at FF.
The mods work hard at weeding these people out and they do a excellent job of it. There are still a few that are wily enough to go undetected until it's too late.
Here are the major red flags you need to watch for:
1. A thread that's rules are not clearly stated or that change frequently.
Systems with clear, unmistakable rules do not generate long threads. If the questions are all answered in the first post, there is nothing left to post.
The con man needs long, fast growing threads to build followers. He needs ambiguity in order to make himself indispensable.
2. Claims of outrageous performance. No losers- 90% winners-
claims that you can start with $200 and make a living... etc.
This is necessary to attract the suckers and drive away experienced traders who might ask embarrassing questions. It is imperative that these claims cannot be verified. This is usually done by the con man's warning that discretion must be used in his system. Repainting indicators will also serve this purpose, as they prohibit backtesting.
3. Suggestions that there are secrets that have not yet been revealed.
4. The formation of a cult.
This is a necessary part of a scam.
The easiest way to spot this is by the "Guard Dogs" who form around the con man.
These are regular members of the thread who attack anyone who questions the con man or his system. In a legitimate thread, the OP, himself, will either refute the critics or ignore them. When a cult develops, the loyal followers feel they need to protect the master.
5. Moving the group off-site. This is the smoking gun!
Money cannot be solicited on the forum. It will cause the thread to be closed and the scammer banned.
The sheep shearing has to be done out of sight of the moderators.
The con man or one of his minions, will suggest a Skype group or trading room be set up.
This will quickly evolve into a trading fund or a subscription blog or trading room.
Have you noticed any threads that show these signs?
I see two in Trading Systems being run by the same man. He's been around here for years.
I see another one a few days old, that shows three or four of the red flags. Another one was recently moved to the commercial section.
My money's safe. I hope yours is. I just get out the popcorn and watch
and is known to be a fruit n veg salesman 
(seriously).
