Believe it or not that is actually the title of an e-mail I received trying to sell me yet another Forex trading robot. Let me ask you a quick question, if you received such an e-mail would you believe it?
Okay, let’s just say we want to give the sender of this e-mail the benefit of the doubt and consider the possibility that what they are saying is true. Turning $1000 into $35,000 is no small feat by any stretch of the imagination. I would think anyone would be proud to make 35 times their initial investment. This is amazing, but certainly not impossible, especially over the long term.
What was interesting about the title is that it states, “turn $1000 into $35,000” as if this is something that the robot will do again at some point in time in the future. I’m going on a limb here and imagine that the results are past results. One thing we all have to realize about past performance results is that they are in the past. This is important to understand because market conditions vary from year to year. I’m only mentioning that because when market conditions vary from year to year the returns on your investment will do the same. I know it would be less sensational, but it would have been more accurate to state, “this Forex robot turned $1000 into $35,000” (assuming that the statement is actually true).
In reality, it really isn’t the first part of the statement, “turn thousand dollars into $35,000 without risk” that disturbs me. It’s the last two words of the statement that are particularly disturbing…”Without Risk”. Merriam-Webster describes risk as, “possibility of loss or injury”. So based upon the definition of risk, the title the e-mail soliciting the Forex trading robot is attempting to tell us that there is no possibility of loss.
If you come as no surprise to you that I find that statement, “without risk” to the ridiculous when used in relation to anything in the investment or trading world. Unfortunately, there are many beginners who may read such an e-mail title and be drawn in by the words, “without risk”. I mean, really, in today’s economic environment who wouldn’t want to trade or invest without risk? Of course, you and I know that such statements are completely misleading. So to set the record straight for any would-be traders who might even remotely entertain the possibility that they can trade or invest without risk I would like to make the following statement: “There is no such thing as trading or investing without risk”.
So what should you do when you see a Forex trading product that is touting that you can trade it without risk? Simple, avoid it. I understand this may be difficult for some because it may be exactly what they want to hear. Simply keep in mind that no legitimate offering is going to tell you or for that matter even imply that you can trade Forex without risk.
