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Forex – and finance as a whole – seems particularly prone to scammers and con-artists and there are several reasons for this.

The first is that finance involves money, and anything that is directly involved in money is prone to the type of individual who only wants to get their hands on someone else’s.

See part 1 of how to avoid the scammers on social media

Secondly, financial markets offer up great riches to those who can master them, a fact that we are repeatedly reminded of by the media.

Third, finance is secretive. Vast riches are possible but most people lose so becoming good at trading becomes a means to an end.

A Guest Post by FXTM

The most irritating part of all this is that it sometimes seems that the most successful trading products turn out to be the most damaging. Take a look at any number of popular affiliate products and they are stuffed full of companies peddling broken systems, newsletter scams, and poorly edited information. OK, some might be legitimate but the vast majority are not. It’s best to avoid them altogether.

Here’s some more advice for who to follow on social media:

Look for teachers not tipsters

As mentioned before, the real key to trading success is to educate yourself on how to trade. Only then can you truly master the markets.
Relying on other peoples tips rarely works in the long run and there are many reasons why, such as the fact that tipsters rarely disclose their other positions.
It’s far better to look for those who seek to teach the skills rather than the signals.

Look for traders who are recommend by others

Clearly then, the Internet offers a lot of help to those looking for supportive teachers. Those who are any good at teaching the art of trading will often come recommended in books, forums or web articles. It’s important of course to ignore any paid for advertisements or recommendations which you sometimes see in magazines.

If a trader or teacher has a good social following and the praise for that trader seems genuine then it’s a good start. Either way, it’s much better than putting your trust in a guru that popped up through a Google ad.

Look for traders who are polite and friendly

It’s interesting because you can often tell who’s legitimate and who’s a scammer by how that individual behaves. Authentic traders and teachers tend to be polite and friendly. They tend to take part in regular conversations with their audience and they avoid engaging in any type of Internet ‘hate’ or ‘trolling’. The same can’t always be said for the scammers.

Another tip if you are unsure is to Google the guru that you’ve found and ask Google whether or not that guru is involved in a scam. If they are, Google normally has the answer you’re looking for.

Further reading:  5 Most Predictable Currency Pairs