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It is no secret that trading in the stock market can be risky. After all, the market operates on a principle of supply and demand. To make profits, investors must buy stocks at bargain prices and sell them at higher prices. Sometimes stocks are worth less than what they were bought for so they are sold for losses. But there are people out there who will try to prey on unsuspecting investors by selling faulty stock shares or shares that never existed in the first place. Trading scams can take away all of your investment if you are new to trading.

Avoid These Common Trading Scams

While there are many security and trading scams out there, we have identified three types that commonly used to rip people off in the market. Simple Scam Simple scams happen when the initial buyer invests a large amount of money in a security that turns out to be a sham. You would usually see this one in a project or sales stock. The investors are gullible because they know that the project or sale is for real and would enjoy great returns, but end up losing their money. Busted Double Dip Scam Another scam is when a second investor buys a stock at a much higher price that the first investor paid for. When the second investor sells, the market believes that they are both investing in a good security, but they are really both buying it at a loss.

How to Protect Yourself from Trading Scams

If you want to enjoy your trading without being victimized by fraudsters, here are some rules that will help you avoid common frauds in the stock market. Take Online Trading Seriously Buy and sell stocks with confidence and make sure that you never send your personal or financial information over the Internet to a stranger. Another good way to protect yourself from scams is to create an account on an online trading platform that is accredited. These trading platforms will have thorough background checks on their customers. Investigate Your Trader Before you make any purchase, make sure that you do your own research. Learn more about the company that you are going to trade with and learn about its history, products and services.

Tips on how to Invest in a Healthy Way

To avoid trading scams, you have to avoid high-risk stock markets where investors are most susceptible to trading scams. You should start by getting a trading account with a reputable company that has a sound business reputation. You can even start investing in assets that are not listed on the stock market. You can consider investing in real estate or gold, which are marketable commodities with long-term investment prospects. Or, you can invest in commodities such as wheat or livestock that are relatively easy to sell when you want to put your money in something else. All you have to do is invest in a commodity of your choice for some time to gauge the market’s appetite for the commodity. In time, you can sell your commodity for a profit.

What to do if you have been scammed

Before selling any stock, check its value on stock price tracker websites such as Yahoo Finance or Google Finance. They usually give real-time stock quotes and make it easier for you to gauge the fair market value of the stock. Avoid buying stocks that have a weird trading history on price tracker websites or on real world stock exchanges such as the NASDAQ or the NYSE because they may have been damaged by an unforeseen event. Look for stocks that have been steadily increasing in price and avoid those that have been dropping in value. Make sure you check the security history of your brokerage account to see if it has been affected by fraud in the past. Also make sure to always make online orders directly from a reputable trading platform.

Conclusion

There are so many things that could go wrong. With this in mind, you will need to do everything possible to keep your investments secure. This means choosing a trading platform that has a large volume of professional brokers and investment professionals. At the same time, you should be careful about buying stock from companies that are too small. Small companies might not have the financial backing to weather any stock crashes. There is another method of saving up for a goal. You could start putting aside some money every month for a specific goal like a new car or a deposit for your first house. This is a much easier way to save since you can choose a specific type of car, or even a type of house, that you would like to purchase.

Guide to Avoiding Trading Scams

It is no secret that trading in the stock market can be risky. After all, the market operates on a principle of supply and demand. To make profits, investors must buy stocks at bargain prices and sell them at higher prices. Sometimes stocks are worth less than what they were bought for so they are sold for losses. But there are people out there who will try to prey on unsuspecting investors by selling faulty stock shares or shares that never existed in the first place. Trading scams can take away all of your investment if you are new to trading.

Avoid These Common Trading Scams

Now that you know the risks of trading in the stock market, let’s see how you can avoid falling prey to the following common trading scams: Stick To Stocks That You Know Of Instead of trading in shares that you don’t know anything about, consider investing in stocks that you already know a lot about. For example, you can invest in mutual funds or exchange traded funds that invest in stocks you already know. It is best to invest in companies whose products and services you use and trust. Do Your Research Before You Trade You should research each and every stock before you buy. Check on companies and their products before you trade in their shares.

How to Protect Yourself from Trading Scams

Before you decide to trade in the stock market, it is very important that you consult a reputable stock broker. There are a few things that you need to know before you embark on a trading mission. Below is a guide to the important things you need to know about trading: Do Your Due Diligence The first thing to do before trading is to ensure that your broker is licensed by the SEC. The broker should have a registered office address, an office phone, and a physical address so that you can visit them when needed. If the broker cannot meet your registration requirements, get him/her another one. Get Qualified Security Experts You need an experienced stock broker to deal with your trades. There are specialized courses for people who want to join the stock market.

Tips on how to Invest in a Healthy Way

Investing in stocks involves taking a risk, but it is a calculated risk. There are several things you can do to make sure you are doing it the right way. Following are the basic rules that are likely to help you avoid investing in a scam: Look out for red flags. Do not invest based on emotions or gut feelings alone. The scams you are likely to fall prey to have taken advantage of this. The red flags will indicate when someone is selling stock shares that are worth less than what they are being sold for. You should not fall prey to these scams unless you fully understand how the stock market works. Have a plan in place. The longer you are going to hold your investment, the less you need to worry about it. Do not put all of your eggs in one basket.

What to do if you have been scammed

1. Contact your bank immediately. A good rule of thumb to follow is never to let your investment be handled by a broker or a so-called investor who you do not know. The earlier the problem is detected, the better your chances of recovering your losses. Before you even invest a penny into trading you should consider these things: 2. Never trade on your own without professional trading advice. Nowadays, you can find experienced and knowledgeable real estate investment advisors to help you make smart money decisions. People who don’t have access to the internet can get professional assistance from the professionals at a real estate office or from their preferred professional. 3. Never make high-risk investments.

Conclusion

It is not surprising that traders are prone to scams. They are risky and they involve a lot of calculations. When you buy stocks to trade, you should be careful and try not to trade with another person unless he or she is a known trader or a broker. However, before you trade on your own, you must read and follow the trading regulations and laws. The level of expertise required to trade must not be too high for you to realize you are trading with a scammer. If your profile photo shows that you have lots of money, then it’s probably too late for you.