Photo (cc) by laser2k
I recently received this question from a reader.
I’ve been researching various ways to turn savings profits and I’ve come to find several softwares commonly called, “Forex.” They claim you can use a certain amount of money, and the software buys and sells currency automatically when the time is right. You can even customize the settings to sell if it gets too low for your liking. First thing I asked myself is if it was a scam, but I can’t seem to find many true customer reviews on this topic. What’s your take on these?
Here’s your answer, Derrick!
Forex is shorthand for “Foreign Exchange.” In other words, the ads you’re seeing are suggesting you trade currencies, either through futures contracts or via options on futures contracts.
While what you’re doing is seeking to turn “savings profits”, what you’re likely to do by trading Forex is turn your savings into profits for the companies attempting to sell you this crap.
Foreign exchange trading attracts some of the most sophisticated traders in the world: people you’ll be trading against and hoping to outsmart. Ultimately the odds are great that you’ll lose everything you invest.
If someone had software that could consistently create profits in these markets, they’d use it themselves, not sell it to you or me.
Welcome to the seamy underbelly of Wall Street, home of the “sure thing.” Simple rule of thumb: the more guaranteed the profit or bold the claim, the higher the odds you’re dealing with either a liar or a fool. Run, don’t walk, the other way.
And check out these two stories I just posted this week: one will keep you away from another stupid investment trick, the other will give you better ideas for your savings.