This can sound appealing, especially to beginners who have no idea what they are doing or don’t have the time to learn.
They figure, “Well, he’s a ‘professional’ – he must know what he’s doing! It’s 100 times better than if I traded by myself!”
The problem with this is that the user is placing complete trust of his/her money into the hands of a complete stranger.
In a way, it’s like taking candy from a baby.
In many cases of managed accounts, the manager actually appropriates funds towards unrelated luxury items such as cars, islands, and castles.
When finally caught, the manager is not able to pay back the whole amount of stolen capital resulting in unhappy clients and multi-million dollar lawsuits.
Yes, we know it seems extreme but, more often than not, it happens and people can lose their entire investment.
Not ALL account managers are bad though. Some do have many years of trading experience and are well-qualified in trading real money, but that’s more the exception than the norm.
Some trading platforms even offer an option to let traders act as managers using the account structure of the broker.
This prevents an individual from taking funds to spend on New York Knicks tickets, trips to the Bahamas, or a Porsche Cayenne.
While this is a safer option compared to letting an independent manager trade your money, you still lose out on the priceless knowledge and experience gained through studying forex trading.
If there is one thing we want to stress to traders, it is education. There is simply no replacement for experience gained through personal studying and trading. In the end, the only surefire way to be profitable in the forex market is to be knowledgeable, practice, and stay disciplined.
We’ll leave you with just one question.
Would you trust your hard-earned money with a complete stranger?
If you’re still itching to try out forex managers, make sure you do your homework and find a CREDIBLE manager.
Don’t be a loser!
“Follow my forex signals and you will turn you $50 into 5 million dollar in 2 weeks.”
You’ve probably heard or seen something similar on TV ads, online pop-ups, or even from your next-door neighbor.
I know what you’re thinking… This is too good to be true! I mean I do believe in leprechauns and I do feel lucky when I eat my Lucky Charms cereal but I don’t know about this system.
Nine and a half times out of ten….
IT’S A SCAM!!!
One of the first things you must learn about the forex market is that although it is enjoyable and exciting, there is no magic button that will instantly turn your pennies into millions of dollars.
You may have already heard about forex scams that are littering the forex world.
They’re everywhere! Dishonest people are constantly trying to swindle people like every single day.
With the relatively new availability of the forex market, people aren’t as familiar with currencies are as they are with stocks and bonds.
This makes it easier for conniving companies and scheming individuals to mislead people into thinking that making money trading forex is as easy as clicking a button with their “End of the Rainbow” system.
There is good news and bad news. Bad news first.
Scams DO exist. They are real and they sucker people who think they can’t be misled. If caught in a scam, you can and may lose all the money that you “invested.”
However, there is very good news!
Throughout this course and especially in the Overall Beans section, Invest Diva will teach you the different types of scams out there, how to prepare yourself, and how to choose a reliable broker or account manager. If you are a member of the Premium All Access account, you can jump there right now. Or, you can just wait for after you have undergone the necessary trading training.
Remember, not all forex companies are bad. Not all investing programs are scams. Just do your research and you’ll be fine.