The psychological tricks of frauds on Forex market
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Thread: The psychological tricks of frauds on Forex market

  1. #1
    Super Moderator Gulfstream's Avatar
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    Jan 2013

    The psychological tricks of frauds on Forex market

    The psychological tricks

    Nowadays we often meet people, who has suffered with fraud hands on Forex market. As the rule, it is traders–beginners or those people who does not have a concept about what Forex is and “what it eats with”, but decided to make as much money in a short period of time.
    In this topic, I would like to draw your attention exactly to psychological tricks, with the help of which, so-called frauds “hook” naïve customers.
    You ask, what such psychological tricks are. Let’s examine it in more details.

    In this topic determined manipulations are interpreted as psychological tricks, impacting on your and our mind, which is very often used by marketing specialists, but increasingly – by notorious frauds. The difference between fraud manipulations and marketing ploys, consists only in that the tricks of the first one are mainly directed to lower our vigilance, to warm into the confidence, and of course to get into the purse.

    All this psychological influence starts from simple phone calls…

    Somebody called you introducing himself as employee of some broker company/dealing company (next DC/BC), with the offer to become their client. May be there is nothing wrong here. Many companies have call-center, where employees work with clients through telephone connection. But there is one “BUT!”, which is worth paying attention to.

    One thing, when representatives of the company call you, where you worked someday and/or left your requisites, and another, when you hear about the company at first time and never, nowhere put your personal details. Of course, there are such situations, when one company clients database is transferred to another one, it is also should be taken into consideration. However, there are nuances here…

    Phone calls are made not once, and not twice, but with regular periodicity, which you are imposed theirs services in. Theoretically, this small call is suspected as something wrong here.
    Because of your own busy, inattention, frivolity and/or trustfulness, more often, we don’t pay attention to this “call”. Herewith phone calls are continued.
    What happens, when we are constantly advised and/or offered something during a certain period of time? Surely, the idea appears in our mind: “Why not to try…”. This is what the psychological trick is expected for, to appear even small but the wish to work with the certain company. In such case, frauds’ insistence played its game…

    Another psychological trick of impact on us is the method of persuasion.

    The same person tries to persuade us in every possible way that theirs company is the best one. Most of all, frauds have such expressions in the arsenal, as:
    · «we are the most reliable company»,
    · «we guarantee you the highest level of income»,
    · «your deposits will be insured»,
    · «total lack of risks»,
    · «all your losses will be reimbursed fully »,
    · «you will be supervised by the best traders/analysts of the company»,
    · «we work with the most reliable and proven signals»,
    · «here(giving the link of the source) you can look at our clients feedbacks»
    · «we make the agreement will all our clients, which will protect all your rights and interests» etc.

    Thus, all these arguments sound very persuasive, displacing the usual warnings about risks, which exist every bona fide company, to the background. And next idea, which appears with us: “Why not to invest money in the company, if it promises high level of income and… I can make good money with low level of risks… exactly, I need to take the advantage of the deal…”
    So, because of first two psychological tricks of frauds, You have already become the client of some broker/dealing company. However, the psychological impact on you does not ends on it.

  2. #2
    Super Moderator Gulfstream's Avatar
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    Jan 2013

    Next trick

    Next frauds’ psychological trick is based on such concepts as “greed” and “searching for something better”

    After a certain time of successful trading (week, month or other period), when client sees growing profit, in so-called geometrical progression on his account, he is offered repeatedly to add fund. As more money is on the account, as much your income will be. And the client, with the inherent human greed, surely, agrees with this provocation and adds funds. Because of, as he considers, he scares nothing, his income grows as he has green fingers, and all risks are insured. To the same end, with the advice of the same representatives of the company, he doesn’t withdrawal his funds, leaving as the deposit as the received income keep spinning in the turnover. At the same time, I would like to mention, that in this case the income of the client grows because of the company representatives actions, who either give signals to enter/exit the market, or make deals by themselves on his behalf. The professionalism of the investor is not required here (and it is the most attractive victim for frauds), his main mission – to transfer the money to the company and await with impatience.

    One more way to make the client adds fund to his account, is offering him more “profitable” and “better” conditions. In one hand, it is quite normal when DC or BC provides the best clients, whose deposit is more than N sum of money, with certain privileges as VIP status, in another hand, it is worth considering, when such kind slogans are proceeded from the side of the company: “become VIP client and the best company trader/analyst will work personally with you”… It sounds tempting, but not realistically. Frauds don’t stand still and any way acquire refinement in receiving from us as much money, inventing more enticing chips. Unfortunately, if we don’t pay attention to seemingly minor, but very important minutiae, making a clear distinction between marketing move of the company and another frauds’ ruse will be very difficult. That’s why, as the rule, the client, wishing to get high status and some privileges, not thinking really, caves in to the company and adds his account with funds.

    But that's not all psychological tricks of frauds. Another way of impact on the client is based on the feature, inherent to a hard-core gamer. It is the desire to recoup and retrieve the lost.
    Imagine the situation, when after some weeks or months of successful trading, one of open position became lossless immediately. Money on the account began melting before the eyes, until had not disappeared at all. The client is in panic, he is absent-minded, only two questions balling in his head: “How has it happened?” and “What to do further, how to return own money?”. And here comes they… the same representatives of the company, ready to console and give a useful advice at a difficult moment.

    It looks just about like this:” Don’t worry, we know how to get out of this situation… Add fund on your account with the same sum, and we not only multiply this money, but return the old one. Nothing terrible happened here, there are such moments in the life, but remember, how everything was going well before it, and if you add funds, it will be even better… Nowhere to go, to add funds on the own account, hoping for the best…. After all, to live with the loss of money is too difficult, hard and painful, and here drops the chance for everything to come back, why not to use it...”.
    Another trick of the psychological impact from the frauds side can be called as the way of manipulation, based on the fear.
    Buy the way, this trick is spread enough. Some trader of the company, whom was ordered to manage the client, asks the last all personal details from the personal account and / or trading account (login, password, account number, etc.). He justifies his request very simply. Getting all personal details, he will constantly control the situation, and in the case of unexpected and/or undesirable moments, he can operatively take all appropriate measures, to avoid negative consequences. The client, of course, worrying about the money and scaring lose it, voluntarily transmits a third person all the personal details, thinking, that he will safe his principal in such way , - «…after all experienced trader can open quite profitable deal in time or prevent money loss, closing the unprofitable one in time»

  3. #3
    Super Moderator Gulfstream's Avatar
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    Jan 2013

    But what actually happens…

    You are received obsessional calls with the offer to invest money in some company, which promises high profitability from the invested funds. As the conformation of the words, you are provided the link directly to the company’s own website, where its activity is described and positive feedbacks from satisfied clients are given. You read everything, you liked it and to finding or recheck something further, the wish was not arisen in you (exactly at that moment you made the very first mistake, because, often, unfair companies “mop”(remove) on its resource all negative feedbacks and leave only positive ones, thus misleading you).

    If you nevertheless decided to work with some company and invest funds in it, don’t be lazy to find out as much information about this company (what year it is on the market from, if it is in some association, what feedbacks about the company are on independent exterior resources, etc.).
    But here, it is also worth considering, with strong competition, negative feedbacks can be written about the company, which are actually irrelevant to the company, or offended clients feedbacks, whom the company simply didn’t oblige with something.

    Therefore, not to get confused with and to understand everything, you need, reading comments about the company activity (feedbacks), to pay attention to the writing style and the contain, if all feedbacks are not written by one person, or may be, one disgruntled client from simple offense for the own blunder.
    Then, after confident assurances of that you risk with nothing and can earn good money at the same time, you add funds on the account, because you were concluded the agreement, which, you think, is the guarantee of your rights and interests protection. A lucrative trading is going and you are guided with greedy gains, with the advice of interested persons, “pour more” money on the trading account. As the rule, these funds are borrowed (taken credit or borrowed from relatives). But here, at the most inappropriate moment, the fortune turns away from you and all your money "disappears."

    Never invest borrowed money in high-risk deals. Invest only that part of money, which you will not care to lose (although money is always a pity to lose). Do not keep all money in the turnover, as soon as you have an opportunity, withdrawal the sum of invested funds from the account, let the profit works for you further. (it is the only right way method to secure yourself).

    Unwilling to put up with such loss, you are searching the opportunity to get back lost capital. You are given such opportunity, offering to replenish the account one more time and get not only lost money, but also good profit. In the end, you borrow money again replenish the account. But, in spite of this, scaring to lose money again, you transmit personal details of the account/cabinet to the supervising trader, naively assuming that everything will be different this time. Trader opens and closes deals on your behalf, comes out in plus, you are cheered up, and here one of unsuccessful deals leads to the complete “wastage” of the deposit. You have panic, and, so-called trader calmly says you, that such happens…

    It is not worth trusting somebody and transmitting the personal details from the personal cabinet and/or trading account. Nothing good will come from this situation anyway. Even if you are given an opportunity to dispute company actions, you can hardly prove that operations on the account were carried out not by you, but by a third person.

    Transmitting money to the management, you must clearly set risk limits: maximal drawdown, trading strategy, etc.
    Now you remember about the agreement and start to conduct negotiations about the compensation for your lost money. Here just these negotiations do not last long. The agreement is typical, nothing about money back guarantees is specified in it, and the responsibility of the company, in fact, doesn’t contains in the agreement. The court aren’t appealed too, because all operations on the trading account were committed on your behalf.
    So, you are left without money, without income, but with huge debts…

    Advice. Read the agreement attentively. And if you are given any guarantees, it must be clearly written in the agreement. But, at the same time, you must always remember one simple truth: all high-profitable operations are very risky, so no guarantees can be in the deal. It is worth being wary of the companies, which promise good income with minimal risks. Forex – is not that case, where the level of income is higher than the level of risk.

  4. #4
    Super Moderator Gulfstream's Avatar
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    Jan 2013
    In this topic the most widespread psychological tricks were adduced, which frauds use to get your and our money. Theirs list, of course, is not final. There are other tricks of the impact on your and our mind.
    However, with all of this, it should be noted, that to enroll the company to the frauds ranks basing only on one of previously mentioned points, would be not entirely correct. In this case, it is necessary to pay attention to the set of concerning factors (moments), not to confuse a usual marketing ploy of the DC/BC with a simple frauds trick.

    So, for our better understanding, how these or others frauds schemes operate in certain situations, I have one suggestion to you: if something similar happened with you/or with your acquaintances and/or you were trapped into frauds “predators paws”, but were able to get out in time, you can write in this topic about it (what everything started from with, how it was going and in the end how it was finished).
    However, in order not to violate set Rules of the forum, exactly p. 5.2, the broker or/and dealing company name is identified with a conditional letter. For example, “…recently I have invested plenty of money in the company A, thinking, that…”

  5. #5
    The market moves through psychology and we must all know that psychological effects should be very common amongst the forex traders and we must know that making money in the forex market is very difficult thing to achieve. making money is very difficult.

  6. #6
    Trader moccarist11's Avatar
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    Feb 2016
    Maxima Finance Bandung
    those happened on most beginner investors as noticing use with the chance as moderating nuance on deliverance from the media, that the popular issues on appreciation gives with the cue as trader might defines of one with decision to gives of conclusion on telling of those as the most with prior beliefs having with responsibility with the risks as trader experiencing the scam as entering the finance business. that those had as good trader to focus with the deeper on attention as measuring the details of point on objection as approaching the different issue with the better decision before to enter business to work with the trading plan.

  7. #7
    Though some newbie traders lose money as a result of lack of knowledge, skills and experience and then accuse brokers of being fraudulent but there are genuine cases of forex brokers being fraudulent and I have fallen victim of this before and that his why I will always take time to study the terms and manner of operation of a broker before I commit my money to its trust

  8. #8
    The very psycological tradign aspect that we see in forex is to run the market with good choices that we have seen , forex in itself does not need to be well informed for anyone to run the market with certain positions that we run from the good things about forex is to run the good informations that we work with and well , the market itself is designed how it will pull you in daily basis and it works well for some reason and it works well in causes.

  9. #9
    Trader megoesspacemego's Avatar
    Join Date
    Apr 2016
    Dasa Mentari
    with the good decision as expending the deeper on attention managing use of customs with the technical evaluation with the good helps on possessing details with the models and measuring instruments trader might gains with the notice on distinguished the differences between shifts on records of quotation to see further of option to gains with the good completion.

  10. #10
    learn a lot, practice a patient a lot. NEVER ever listen to any trading signal advice or some EXTRA bonus offers and advantages. All that is just to put for over You mind and make You confused as well as blind. Just selfconfidence and dicipline can bring You earnings. Nobody else will make money for You. Be aware about that.

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