Attention newcomers

I have never come across as many fraudsters as in the world of forex.

I will mention a few things to look for before rushing into buying and ask that other traders will also mention their feelings.

Personally, I would never:

*Purchase anything that supposedly does well on demo. Sellers should first put it on a cent account and see if they can replicate the results - whether it be a manual strategy or EA.

*Purchase anything that has performed well over a few days/months - that means nothing- minimum 5 years.

*Purchase anything with a drawdown >50%. Unless you plan to put more money into the system than the vendor has. It is easy when you work with demos, but let a live account of yours go into a 50% dd? Then you will see how scary it is.

*Copy trades from a trader who uses a broker that is unheard of. It is usually a doctored account, to look very impressive and lure newcomers to invest and lose all their cash.

I have read many, many sad stories on fx forums about newcomers who were scammed out of their $.
Again, I would like to invite other traders to join in.

god bless you my friend

Great points, but I just don't agree with one of your points.
If a new EA worked great for 6 months or so on REAL account, I will take a chance on that with controlled risk and not wait 5 years to judge it. If the EA is indeed scam, the only amount to lose is the cost of EA and a small deposit.

I assume you're talking about things for sale on MyFXBook? I agree with you.

Personally, I , would not invest money in something that traded well for six months or so. There are many EAs that perform quite well for a couple of months and then bomb out after a year or so..Just my own opinion.

I agree with you, if you want consistent and stable trading you should take long period on history. Actually there are two types of EAs (and it's the same for strategies as well) - trend and counter-trend players. So when there is appropriate situation on market, specific EA might be doing consistent profit during months, but as soon as situation changes it will start to lose money.

Although when you know which situation is currently on the market, you might consider running specific EA with more, but reasonable risk.