Money attracts all kinds of people. There are those who want to make money working hard and those who wish to make them fast and easy. There are companies who aim at helping others to invest and develop, and the businesses that only feed on others.
Trading is the field where a lot of money is involved. Traders are earning and losing money. Even when they lost a few times they are ready to try again. And this is the place where the Ponzi schemes come into action.
The Ponzi schemes are the scammers, although they advertise themselves as options trading investment funds. The latter are legit, the Ponzi schemes are not. This article is written to present the way the Ponzi schemes operate and what you can do to protect yourself from it.
The Ponzi schemes overview
Typically, there is a leader on top of the business ladder. He has two or more people below who also have at least two people below them. This is the model of the Ponzi scam.
The thing is that each new participant is requested to pay a fee and this equals your investment. You pay, you join the group and receive the leader’s assurance that you will get high profits from the options trading operations.
In fact, your money is not used in options trading. They are shared between people in higher positions instead. You will not get the return from trading activity. You can only get some money when new members join the group and pay their fees and they invite a few more people. If the new members do not show up, the whole pyramid falls apart and the money is gone.
Now you know how the Ponzi schemes work and that they are not real investment funds. They attract new members only to get their investment money. The real investment funds, on the other hand, make it possible for you to generate profit from your investment.
What makes the Ponzi schemes seem appealing
The Ponzi schemes, to be able to function, need good advertising to cover their true intentions. Naturally, you will not find them under the Ponzi schemes name but investment funds rather. They will promise high profits, even 30% daily from their $10 million funds. And to be honest, who would not want to participate in such a share!
Remember, nobody can guarantee such a return. 30% in options trading sounds impossible. 3-5% a day can occur but still, cannot be promised.
There is always risk involved in options trading. Trusting a total stranger with your money does not even sound right. In order to make more, you should always take care of what you already have, thus transferring huge amounts on some stranger’s account is not wise behaviour. They may as well lose all your investment and you will never see it again.
My point is, do not fall easily for high returns promises. If you are keen on options trading, open the trading account and do the work yourself. This way you will know exactly what is happening with your money.
So if you happen to sign up for a Ponzi scheme, leave it as fast as possible. Their business model operates in such a way that they will insist you bring new members. You may be pressed to invite somebody from your family or your friends’ circle. In the end, you may not only lose the investment money but also the trust of your loved ones.
Secure the Olymp Trade account
In addition to the Ponzi schemes, you may encounter the traders declaring they will help you increase your balance account. But to do that, they need to obtain access to your account. They may try to gain your trust by sending the proofs of their successful operations.
Never ever share your account details with anyone. Only you are the person who should have access to your account. If someone calls himself a professional, he should not insist on getting your account details. He should rather share his experience and strategies that worked well for him with you so you can use them in trading.
Be careful. Do not make hasty decisions. If someone claims he can help you make a fortune in a day, stay alert. When you really think about options trading as a way of making money, proceed as the successful traders do. Gather the knowledge, read, practice on the Olymp Trade demo account and have patience.
Wish you success!
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