"Look before you Leap" - English proverb.
I have received a SMS recently, "Want to make monthly passive income from Auto forex trading? We do not charge management fee and don't have to buy any software. Interested, please come to our talk". So, how they survive?
I don't know who this chap is, obviously trying to earn some comm. from soliciting funds to invest in some Auto Forex trading system that promise reasonable returns without highlighting the tremendous risk involved. BEWARE!
I have invested some money with fx:1 academy 3 years back to test out their so called Automated trading that promised good passive income with impressive back testing track record. I was conned into being their scapegoat and my account lost more than 50% before I decided to close it. Very ashamed to reveal it here, but just for my friends to be aware of the risk.
I have never seen a day of profit, it's downhill all the way right from the beginning. Since it was a small investment, I didn't pay particular attention to it until one of their trainers called to apologise about a huge sudden draw down due to some adverse news during the night. Of course all the bull shit explanations about missing stops in the Forex market, etc, etc.
The company made money from churning the account through an automated trading system deploying various strategies. The Forex Broker gave the company a cut from the spread between the bid and ask price every time a trade is done. It's a money tree for them, I don't mind if they are able to make money for me, but that's not the case, it's win win for them and losses only for me.
This company markets their courses and automated programme through some sort of MLM plan where most of the top money earners are in fact salesmen and not traders.
A friend visited me recently and revealed paying S$3,800/- to the same company for a course on Forex trading learning only one strategy, he emphasised. He did not trade after the course, as he was unsure of the charting and trading platform. Another victim of some sleek marketing on how easy to make money trading forex by just spending 2 hours a day. It suited him perfectly since he is working full time.
Profit for the special account again drop to S$5,821.00. Still holding long 3 Topix/Nikkei spread.