Whenever I flip through The Strait Times, there are so many get-rich quick seminars advertisements on forex trading. It seems that the advertisers are targeting the growing aspirations of middle-class Singaporeans seeking to build their wealth quickly through forex trading. These seminars are often marketed as “enrichment classes” with catchy tag lines such as “Mr X makes 2,000% profit in one month, so can you!” or “Mrs Y turned $2,000 into $50,000 in three weeks, so can you! Also, during the seminars, the modus operandi is to highlight the opportunity to retire young and the chance to earn extra income. The organisers would use hard-selling tactics and misled people into the false impression that the trading techniques can produce good money. In return, consumers had to pay thousands for these seminars or buy their in-house trading software.
I do not have the figures on the profile nor the number of Singaporeans who attended these forex trading seminars, but I suspect that many Singaporeans had already lost a lot of money from forex trading. This is a worrying trend which I think Singaporeans need to be aware of. Firstly, forex trading is a form of high risk activity as you are betting the future movement of currency exchange rates. Sure, you can make a lot of money through leveraging your bets, but you can also lose a lot of money from it too. Secondly, to succeed in forex trading requires a lot of discipline, real-time market information, experience and capital. Beside these, you have to devote 100% of your time monitoring the market. Therefore not everyone is cut out to be a successful forex trader. Thirdly, always remember that if something is too good to be true, then it is. There is no such thing as low risk and high profits. If the organizers has mastered the techniques of becoming rich through forex trading, why would they want to share with you? Always be cynical before you part away your hard-earned money.
Investors should realize that there is no free lunch in this world. Be cautious when you come across advertisements that claimed to produce consistent exceptional returns. To be a true wealth builder, ask yourself whether you understand what forex trading is all about, the risk nature and your ability to undertake such high-risk fast-paced activity. Some Singaporeans are destined to be poor, not because of their lack of education or laziness, but due to their greed. In their desire to become rich, they conveniently dismiss the downside and always focused on the potential returns. They don’t realize that for every one person who really made big money from forex trading, there could be hundreds or even thousands who suffered huge losses.
Many Singaporeans are actually not investing, they are just greedy and foolish people who are easily conned into get-rich quick schemes. Many Singaporeans don’t do their homework before they invest. They let greed rule their head and thought they had discovered the secret to making big money when it was actually a trap waiting for them to walk in. They think they can outsmart the rest of the world. How can that be? They have to realize that if something is too good to be true, it probably is. So get yourself financially educated by following my blog, SG Wealth Builder. Be a wise wealth builder in Singapore!