Volatile Markets

Asian markets were seen to be volatile the week of December 18, 2005 with year-end holidays fast approaching and trading volumes expected to thin out.

"Given the stellar run many markets have had in the last few weeks, regional stocks look particularly vulnerable to any profit taking," Pakistan’s Daily Times Website said.

The website added that Asia’s top three performing major share markets (South Korea, Japan and India) all hit fresh milestones for the week ended December 16 after markets have been on fire for the past month. This makes the market liable to the risk that people will start locking those profits for the year before they go on holidays.

As continued concerns over the impact of a stronger South Korean Won could cap broader gains for Korea, mid-December forex reserves are expected to increase as buying shows to be still strong while Hong Kong’s currency continues to be pegged to the US Dollar.

(Highlights of Asian Markets Seen Volatile Next Week, DailyTimes.Com.Pk)

Dollar Struggles In Tokyo

The US Dollar struggled in Tokyo’s trading last December 15 after plunging a day earlier due to trade deficits. According to Reuters, the market braced for more short-covering that had boosted the Yen to its steepest one-day rise in nearly four years when the U.S. currency fell by more than 2% against the Yen on December 13, 2005.

Other currencies who well against the Yen include the Euro who suffered its worse one-day fall versus the Yen since July at 1.6%, together with the New Zealand Dollar, Australian Dollar, Canadian Dollar and British Pound.

With the market open for more dollar selling and prone to react sharply to weaker data than strong data, the dollar is firmly capped with lots of sell orders that more than offset dip buying by Japanese importers and investors, who had been borrowing the Yen for almost no cost yet selling it to buy high-yielding currencies in carry trades.

(Highlights of Dollar Struggles After Record Trade Deficit, Reuters South Africa Website)

How To Avoid Being Scammed

There are three ways to spot a forex trading scam, says OpenPR.Com, that you should know about to protect yourself. These are outrageous promises, large profit guarantees, and employment ads for forex traders.

As with any scam technique, forex scams include too-good-to-be-true deals. Thus companies or individuals who claim that their forex strategy carry little or no risk at all are scammers, primarily because forex trading is a naturally high-risk-for-loss transaction.

This is also why OpenPR.Com points out that not even the best and most experienced forex trading firm can guarantee that they can make a profit on any given day. Individuals who have claims to the contrary should raise a red flag for you.

Finally, groups who lure in individuals under the guise of offering employment via a free practice account to be able to trade is another possible sign of a scam.

"They (scammers) provide individuals with a free, practice account…are told that they have traded so well, that they will be offered a job to trade for the company. It doesn’t exactly work out that way. Instead, individuals are directed to invest their own money, which they will never see again" OpenPR.Com reveals.

(Source: Spotting FOREX Scams, OpenPR Website)

Forex Scams Rampant?

According to OpenPR.Com, Forex scams have become as popular as Forex trading itself. The potential high returns associated with forex trading has prompted some deceitful individuals to venture into scamming those who are not adept in the field.

"Scams are being advertised over the radio, on television, in newspapers and, of course, over the Internet. Investors who unwittingly fall for these schemes generally lose their entire investments. FOREX investors must be vigilant…for potential forex trading scams," the website said.

It seems that in every field of potential profitability, criminals abide as well. The fact remains that, despite Forex trading becoming increasingly popular, illegal and illegitimate forex schemes are on the rise as well.

Because of this, OpenPR.Com advises in its article Spotting Forex Scams that investors must be aware since "there are many groups and individuals who are more than ready and equipped to swindle unassuming persons out of their money."