Online Trading: Abuse Of The Internet - Currency Trading Article

By:John Porter

High-speed internet connection and advanced personal computers have opened new gates for people who have always been interested in trading online but never had the inclination to be out there on the market and trade from the floor of the stock exchange. The other option he had was to let a broker carry out transactions for him, but then one lost out on the charms of trading. It was not something where you can be involved yourself.

Today you can conduct trade on stocks of all sorts of companies right from the comfort of your house. No hassles. No brokers. Nothing. But one must also understand that the internet has also opened up great avenues for scams to be carried out. The main reasons for internet being such a hit with frauds and tricksters are its ability to reach millions of people at one go and the ease with which one can hide his or her identity behind the worldwide web. Many experts believe that internet is a much bigger threat than the physical world when you are talking about someone being duped. Let us see how these frauds are carried out. We will discuss one here.

Internet provides a great opportunity to manipulate stocks which are unheard of and have very light trading. Say a broker wants people to trade on a particular stock. For people to trade on a stock, they must know about it, and then they must be made to understand there will be a definite positive gain in trading on that stock. What the broker will do is start a thread on that stock. Most discussion forums and threads in them allow the same person to post innumerable messages under different aliases. So the broker will create n number of aliases for himself and post messages about the particular stock.

The text of the message would of course be favorable toward that stock now with so much discussion about a particular stock and most of it being positive, investors will get interested. They have no way to find out that it is the same broker who has been posting all the messages under various aliases. Rising interest transforms to rise in activity on the trade of that stock. A stock is manipulated. A similar thing can be done by the PR executive of the company or a large shareholder of the stock. This is a definite abuse of the internet.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: High-speed internet connection, trading online, stock exchange, charms of trading, No hassles, No brokers

Article Source: http://www.articles2k.com

Find more Online Trading and
Online Trading info online.
For Online trading related articles: http://www.online-trading101-fyi.info

Top Currency Trading Articles
1). How To Spot Forex Fraud By : Willie Reynolds As the popularity of Forex increases so do the number of scam artists attempting to cash in on the Forex gravy train. Since Forex involves trading money internationally, often over the Internet, a whole new breed of scams have come about. Ironically many of these scam artists are finding their marks through newspaper, television or other print media advertisements.
2). Hot Tips for Successful Online Forex Trading - Part 2 By : Jimmy Cox In the first article in this series, I passed on several tips to help you become a successful trader.
3). Trading In Black And White Forex Trading Newsletter – 5/9/06 By : Eddie Yakubovich When is a night that you don’t get into a trade a good trading night? Well the obvious answer is when the market goes against you, but since you did not get to your entry price you did not lose any money.
4). Why Forex is a great trade By : Mark Slattery The Forex market seems to be one of the hottest markets right now. Let’s take a look why It takes small amount of capital to get going and you get leverage with it. This is important because a lot of people entering the market are looking for ways to make money and not just to invest their spare cash. Leverage means that you can use other people’s money to make your investment bigger.
5). Electronic Currency Exchange: Trading Digots for a profitable living By : Armand Mont First of all, if you're just finding out about electronic currency exchange trading, then probably you're still asking "what in the world does this electronic currency business is", and most importantly, "how do I make money from it?" Well, you are reading this at the right time, because electronic currency exchange is a business that is expanding and offering new ways to profit from it.
6). Mechanical Trading systems – Spotting the Ones That Make Money! By : Stephen Todd Mechanical trading systems are, as you would expect, systems that make trading decisions for you. The thought of having mechanical trading systems you can simply use to generate automatic profits, is obviously very attractive to many traders.
7). How Useful Are Charting Indicators? By : Erik Teh Many Forex Traders have computerized charting software to help make trading decisions. There are many excellent indicators that can assist a trader- such as MACD, Relative Strength Index and Moving Average Lines, just to name a few. Using indicators alone can reduce the probability of trading success. Why? Because the Forex market is driven by human emotion and charting software is a computerized program.
8). A Look Back At Forex Trading - 4/18/06 By : Eddie Yakubovich Cable final broke through the super resistance at 1.7600 yesterday. Even though we had a losing trade last night, I have to say I am glad to see that tight range behind us. Maybe now we will see a few prolonged and definable trends.
9). Trading In Black And White Forex Trading Newsletter – 5/17/06 By : Eddie Yakubovich Ok, we admit it, this is even a good trading week for us. A couple of weeks ago, when we made 700 pips we did it in a market that was incredibly volatile. There were 300 pip ranges throughout the week.
10). Understanding What Influences Forex Prices By : Internet Wealth Mentor This article will explain some of the differences between Technical Analysis and Fundamentals and explain a bit about each type of trading. Excerpts are taken from the best-selling book ‘Market Wizards’ where Jack Schwager interviews Ed Seykota and Bruce Kovner. Ed is a trend trader (uses technical analysis) and also relies on hunches from 20 years of experience.

New Currency Trading Articles
1). Why Forex Trading Is So Popular By : Sandra Stammberger The Forex market is often more appealing to people that like to live on the edge. There is more uncertainty by far and the rewards of knowing when to buy and sell can be immense.
2). What Is Forex Or The Forex Market? By : Ali Jamalan The forex market is the largest financial market in the world, trading currencies against each other. This market has the potential for investment and trading for profit having great earning scopes in the trade. Access to this market has become commonplace for any individual who’d want to participate in contrast to the olden days when only large bank buildings could trade in the market.
3). Pick Your Trading System By : Gail Metcalf Many investors keep trying one system after the other until they find something they are comfortable with and that works.
4). Money Management Tips For Trading On The Forex By : David Mclauchlan Money management in the foreign exchange currency market requires educating yourself in a variety of financial areas.
5). Intro to Forex Fundamental Analysis By : Matthew Bass This article looks at the principles of using fundamental analysis skills in Forex trading.
6). Why Should You Trade Forex Market? By : Nofie Iman Simply said, there are no other trading instrument comes even closely to forex market when it comes to liquidity, 24hr market environment and last but not the least, profit potential. Forex (currency) market is the largest (most liquid) financial market in the world, with an average daily volume of more than US$ 1.5 trillion, which is more than all of the global equity markets combined.
7). Understanding Concepts of Online Forex Trading By : Vickie Lovett With a little knowledge and a good forex trading system, you too can profit substantially with minimal risk using online forex trading.
8). Forex Day Trading Versus Position Trading - The Pros and Cons By : Cynthia Macy Trading can be fun and exciting when you daytrade and very boring when you position trade. Our motto: get in, get out and go play!
9). Word Cloud Sites Rock the Web! By : Cynthia Macy If you have a business website that is for trading forex, commodities, stocks or options, etc., then you might be interested in a new advertising method that will send massive new traffic to your business sites and get you tons of valuable one-way back links to improve your page rank, all hands-free!
10). Introduction to the Forex Trading By : Nofie Iman As you might know, the foreign exchange market is the largest financial market in the world. There are over $1.2 trillion changing hands every single day. Compare that to the $25 billion a day trading volume at the New York Stock Exchange. In fact, it is three times larger than all of the US Equity and Treasury markets combined together.