Question #1: “How can I find out if a company is really a registered financial services provider? I’ve heard of a lot of scams lately.” - Wokring
I think the best thing you can do is phone the FSB themselves and ask them... Ir you must look at the reviews, ask people their experiences or look at their growth model how they've performed in the past.
I only look at companies that have been in operation for more than 5 years. Timon Rossolimos, Head of Trading at FSPInvest.co.za
Question #2: “Good morning I would like to know how do I see if a company is a scam on the binary on the trading side. I have this companies telling me to trade with them with a return $1000 or more a week.” - Washington
There are many ways to identify whether a company is a scam..
Here are some suggestions:
1. Go to google and type the company in to read about them on other sites
2. Read the reviews from as many REAL people as possible
3. If it sounds too good to be true, it probably is.
4. Only trust reputable brokers that are known worldwide
5. If it's very marketing orientated where they promise you things, don't believe them. or don't risk any money and go see why they say the things they do.
6. Make sure they deal with top banks in the world and don't run their own finance firm where they can take the money and run...
7. Look at their portfolios growth over the years, to see the consistency or even the validity.
I hope that helps Washington... Timon Rossolimos, Head of Trading at FSPInvest.co.za
Question #3: “Good morning ladies and gentleman.
A couple a weeks back whilst scouring the internet, I mistakenly click on a link. But it is what happened afterwards after closing the browser. A couple day later a flurry of notifications enters my inbox. After that my email inbox start crying under the influx. I just scroll through these messages. It is a string of about 30 to 40 or more guys claiming to have perfected some kind of automated application that can put any master trader to shame.
It claims that that this piece of software can win nearly 90% if not more out of 100% of the trade it enters... I want to know are these automations already here as I've become aware of such claims for a couple years back and I thought nah not possible. I've read countless reviews backing up the successes of these software. What is your honest take on these, gentleman.”
There are many different automated systems that work...These are normally based on good risk to reward ratio systems....
However, there are no systems in the world that accurately predict 90-100% all the time, because you can't predict a market that's ever changing and have infinite variables that results in the Zig Zags...
I'll give you an example:
My Red Hot Storm Trader service for the last five months have yielded a 87.5% win rate. But because I've got stats and results for the last 10 years, I know that the average win rate is around 62%...
I can easily market the 87.5% win rate in a years time, but I prefer to talk about how it's performing now....
The most important thing you need to realise is that "Past performance is not indicative of future results"
So give it a go, paper trade it for yourself for 8 months and see how the results look and how the system has done in that time...
Then you would have past the marketing side and entered the realistic side to trading...
Have a great day and good luck in your trading journey. Timon Rossolimos, Head of Trading at FSPInvest.co.za
Question #4: "A lot of advert about forex trading even JSE talking about making lot of money. Where do I start so that I do not lose my money?" - Braish
Hi Braish, I would start at testing the different services and taking advantage of the money Back Guarantees...
I would trade a demo account so that you can get the feel of trading and what you could potentially make or lose and see if it's for you...
I always suggest that no one should commit a cent until, you trust the strategies where your money is going and that you understand the risks involved...
Best of luck with your Forex trading. Timon Rossolimos, Head of Trading at FSPInvest.co.za
And that brings us to the end of the Five Christmas Trading Scams…
Have a wonderful Christmas and a happy new year… And if you don’t celebrate Christmas, enjoy your time off as you deserve it…
I’ll see you in the new year.
"Wisdom yields Wealth"
Senior Editor: Trading Tips
Head Analyst: Red Hot Storm Trader
Author: 94 Top Trading Lessons of All Time