Forex trading has been on a noticeable high in the past few years. Many new traders have started trading in South Africa, sadly, this has also left many people scammed. Scams happen in many different ways and shapes and forms. However, many predators entice new traders to start trading, by giving them advice and education about the markets. Once theyre in they sell them a trading bot that is certified to make them millions. These trading bots then lose all of their money and the seller and brokers make lots of money off of this transactions.
A Forex trading robot is a colloquial term for algorithmic trading, based on whether to buy or sell a pair at a specific point in time. These systems are often completely automated and work alongside brokers and platforms in the industry. These robots are designed to remove trading psychological element which can be detrimental to a traders career. Many of these robots are sold over the internet. These companies will spring up over night and offer a money back guarantee for their systems, however they often disappear over night. They often use a few successful trades to use as a back test in order to entice clients to continue to purchase their systems. These are not legitimate tests for assessing risk or opportunities in a trade. It should also be noted that these robots work in the short term but not in the long term. This is because these robots are coded to trade between specific range and follow trends. Once the trends is over and it is out of range, they will wipe out the trades and then their account. In South Africa, many traders are lazy and want to find a short cut to quick profits and money. There is no shortcut to trading, however, many scammers take advantage of this type of thinking and entice traders to purchase these false robots. In South Africa, people spend a bout R15 000 on one of these robots. This is a lot of money for South Africans and often comes out of their savings or the last money that they have. They would spend it on something that gives them hope for their financial future.
People in South Africa should practice caution when purchasing these robots. More importantly if they do purchase these robots, they should purchase one from a reputable company. Traders should instead first purchase reputable Forex education so that they are familiar with the markets and how they work. This will leave them with some defense when scammers try to scam them into buying these fake robots.
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