When you think of Forex trading, think of a large water tank stirring with ravenous sharks that impatiently await the arrival of amateur scuba divers. It is a dangerous place with ruthless tactics, selfish motives, and a profit-at-all-costs mentality. In short, it is a world of predators, and if you present yourself as easy prey, prepare to eaten.

For those brave enough to venture in, here are some tips.

1.    Be careful.

You have to know what you are doing, and this requires some research.  Read up, and prepare yourself as much as you can. Listen to your instincts; they’re usually on point. You have to remember that you are dealing with strangers and that you must be extremely careful about giving your money to other people.

If you get the feeling that you are being cheated, then you probably are. Look into the people you are considering doing business with. Get references, makes calls, and do your homework. Go ahead and contact the broker registration office.

Make sure you know the name of your broker’s company. You should also call the company and confirm that the person you’re dealing with actually works there.

2.    If it seems too good to be true…

Imagine a stranger approaching you at a party. He say,  “I have this great investment opportunity. If you give me your life savings, I’ll triple it in a week.” Unless you’re utterly foolish, you’d ask for some more details before opening your checkbook. You cannot let yourself be fooled. You work hard for your money, and if you are going to hand it over to someone else, you are going to need some very convincing and well substantiated reasons.

A broker will tell you anything. That’s what they do. They are in the business of taking other people’s money.

3.    Slow and steady wins the race.

There is no reason to be in a hurry. Avoid dealing with anyone who pressures you or attempts to convince you that the deal is time sensitive. If it is the kind of deal where you have to “act now,” it is probably a bad idea.

The faster a broker can separate you from your cash, the more likely your cash is about to disappear. Ignore the hype. If their prediction powers and inside information were as good as they’d like you to believe, they’d be long retired. Move at your own pace. Be very careful not to let anyone pressure you along.

4.    There is no such thing as a “sure thing.”

There will always be a certain degree of risk. Companies will try to seduce you into a false sense of security. No company can shield your investment from risk. If a company makes a promise to secure your investment and keep it risk free, stay away. It is an impossible promise to keep, and more importantly, the company is not contractually bound to it.

Be just as careful with companies that advertise unrealistic profits. If they claim to make you thousands of dollars a week on a small investment, prepare to lose that small investment. If they guarantee a particular percentage on your investment, you can be sure that you are about to be cheated.

5 . Be extra suspicious of brokers that make first contact.

If you never heard of them or dealt with them in the past, stay away, or at least be extra careful. They don’t go looking for business unless they need it, and the ones that need business are not the ones that you want to be dealing with. Your goal is to find a company based on solid information. The same goes for emails.

Go ahead and erase them all. They’ll offer you tons of deals with special features. It’s all nonsense. The respected Forex traders that run an honest and successful business simply do not function like that. They have clear and realistic terms, information, and guidance.

If you are ready to play with your savings, remember that it is not a game. People will happily steal your money and not lose a wink of sleep over it.  Nothing in this world is for free, and as the saying goes, “free is often the most expensive in the end.”