The effect of the vast advances in technology over the past decade or so has been felt on practically every aspect of modern life.
That is true as well in terms of the world of investing. Whereas once upon a time, investors will pretty much leave to their own devices and instincts when deciding which assets, they would include in their portfolio and when they would be selling them off, they can now get help from programs enhanced by artificial intelligence telling them what to trade and when.
These so-called “robot” traders are indeed an amazing advancement and a useful tool, especially for novice investors. Yet those novices are also the ones most likely to be duped into believing in a trading program that is little more than a scam designed to bilk them out of their investment capital. For a thorough rundown on which programs you can trust and which you should avoid, check out IS Scam. Meanwhile, here are some of the signs you might be looking at a scam instead of a legitimate trading aid.
1.Ridiculous Promises
This is the top thing for which you should be watchful when considering whether to adopt a certain trading program or software. If the ad copy screams at you about how you are going to be rich in no time through the magic of their robot traders, it most likely is a case where the oversell is meant to mask an actual flaw in the design of their robot or, possibly, the devious intentions of the robot’s creator.
- Fudged Stats
It is common for the makers of a trading program to advertise the statistics of their robot trader; as a matter of fact, you should be concerned if they didn’t. But you should also be concerned if the statistics that are quoted seem unrealistic or too good to be true. Keep in mind that even the most expert asset pickers have success rates that are relatively modest due to the unpredictability of the market. Even robots can’t get it right all the time.
- Up-Front Payment
If the seller of this robot trading program is looking for money right off the bat, money that won’t actually go into your investment account but instead is a kind of participation fee, you should immediately be skeptical. Such a fee seems like nothing more than an excuse for this entity to take your money away from where it would be doing the most good, which is in an investment property.
- Tough Withdrawals
You should have a method by which you can withdraw your money, either what you’ve earned with investments or your initial capital, at any time you like. If there is instead some long, drawn-out process for you to get your money back, it could be a sign that it won’t be there when you go to get it.
There are certainly many legitimate peddlers of trading robots that are worth your time. Just don’t fall for those who have no intent other than to find a sucker waiting to give their money away.
