I am not one for starting threads because I don't have the time to maintain them, but today I feel compelled...
So many times there are threads offering new traders rich rewards if they buy into the proposal, these nearly always stand out to the experienced trader but for some reason new traders seem unable to see the obvious and unable to resist.
I have chosen to highlight the following one because it is classical and may help highlight the problem to those that cannot see it....
What did it offer:
1) A Swiss Hedge Fund to provide your account with their signals
2) 0.5% return a day
3) A proven track record
4) Limited offer as ONLY 20 clients will be accepted
5) A sob story
Sounds great right? 0.5% per day average return is good make no mistake about it we should all sign up immediately.... no wait... lets look again....
The warning signs:
The Sob Story: Why would a hedge fund do this, guess what you are in luck because it turns out the hedge fund manager was once a poor struggling trader just like you, but with a heart of gold wants to give something back, gosh I am all teared up...
Proven Track Record: It had only has 8 days of history - really from a hedge fund! better yet it is not actually the history from the hedge fund account just some nobody's account, the reason given of course is well you know, hush hush, can't use the Swiss Hedge Fund account for obvious reasons,REALLY!! what are those reasons likely to be? oh yeah that's right THERE IS NO SWISS HEDGE FUND....
Limited Offer: 20 clients only huh! no that is a marketing tactic to make you rush in before it has gone. The offer only valid if you sign up through an IB link - that is Introducing Broker, that means every time a trade is placed on your account opened through an IB link the IB gets a cut of the commission made, for example say it is an EU trade they may get 0.2 pips. It may not sound a lot, but if you have 100s of trades a day through IB links you can make some reasonable returns without risk, well for an individual anyway BUT not for a Swiss Hedge Fund they wouldn't bother about 20 clients banking them a few pips a day.... In fact they wouldn't bother with those clients at all anyway, because it is not what they do, hedge funds invest and trade money they don't knock out signals for retail investors after all it would destroy their edge in the market.... you know the thing that makes them money on the 100s of millions they work with.....
So the signs were obvious, but still some new traders would be all over it rushing their PM through to the thread starter eagerly awaiting the profits.....
Guess what? just a couple of days in and the linked account (proven track record) is down 53% that is right you would have lost over half your account in just one day......
Of course at this point to preserve their reputation the thread owner quickly removed the link to the account and closes the offer claiming too much abuse....
Here is the thread: http://www.forexfactory.com/showthread.php?t=572108
now remember he has since edited the original post and removed the linked explorer, but don't worry I have explorer link here and a picture of it's current status for you to see....
The explorer: http://www.myfxbook.com/members/Matr...hopper/1459779
So wise up people..... there was no Swiss Hedge Fund the thread starter is using fraudulent claims to make money off your account..
So many times there are threads offering new traders rich rewards if they buy into the proposal, these nearly always stand out to the experienced trader but for some reason new traders seem unable to see the obvious and unable to resist.
I have chosen to highlight the following one because it is classical and may help highlight the problem to those that cannot see it....
What did it offer:
1) A Swiss Hedge Fund to provide your account with their signals
2) 0.5% return a day
3) A proven track record
4) Limited offer as ONLY 20 clients will be accepted
5) A sob story
Sounds great right? 0.5% per day average return is good make no mistake about it we should all sign up immediately.... no wait... lets look again....
The warning signs:
The Sob Story: Why would a hedge fund do this, guess what you are in luck because it turns out the hedge fund manager was once a poor struggling trader just like you, but with a heart of gold wants to give something back, gosh I am all teared up...
Proven Track Record: It had only has 8 days of history - really from a hedge fund! better yet it is not actually the history from the hedge fund account just some nobody's account, the reason given of course is well you know, hush hush, can't use the Swiss Hedge Fund account for obvious reasons,REALLY!! what are those reasons likely to be? oh yeah that's right THERE IS NO SWISS HEDGE FUND....
Limited Offer: 20 clients only huh! no that is a marketing tactic to make you rush in before it has gone. The offer only valid if you sign up through an IB link - that is Introducing Broker, that means every time a trade is placed on your account opened through an IB link the IB gets a cut of the commission made, for example say it is an EU trade they may get 0.2 pips. It may not sound a lot, but if you have 100s of trades a day through IB links you can make some reasonable returns without risk, well for an individual anyway BUT not for a Swiss Hedge Fund they wouldn't bother about 20 clients banking them a few pips a day.... In fact they wouldn't bother with those clients at all anyway, because it is not what they do, hedge funds invest and trade money they don't knock out signals for retail investors after all it would destroy their edge in the market.... you know the thing that makes them money on the 100s of millions they work with.....
So the signs were obvious, but still some new traders would be all over it rushing their PM through to the thread starter eagerly awaiting the profits.....
Guess what? just a couple of days in and the linked account (proven track record) is down 53% that is right you would have lost over half your account in just one day......
Of course at this point to preserve their reputation the thread owner quickly removed the link to the account and closes the offer claiming too much abuse....
Here is the thread: http://www.forexfactory.com/showthread.php?t=572108
now remember he has since edited the original post and removed the linked explorer, but don't worry I have explorer link here and a picture of it's current status for you to see....
The explorer: http://www.myfxbook.com/members/Matr...hopper/1459779
So wise up people..... there was no Swiss Hedge Fund the thread starter is using fraudulent claims to make money off your account..