Why You Should Avoid Investment Seminars

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The bestadvice for people invited to an “investment seminar” is stay away. Most suchseminars are a scam and a hunting ground for fraudsters and other financialpredators. Average people that go to one will probably lose one thing: theirmoney.


Such a seminaris simply a modern variation on a number of classic con-game strategies. Thegoal of one is to create an environment that will encourage you to invest yourmoney without thinking and lure you into it. In other words the “seminar” isactually a trap for suckers set by con artists. Here is how it works:


Createan Atmosphere of Greed and High Expectations

The firstgoal of the seminar is to create an atmosphere that encourages you to buy.There are several ways of achieving this goal the first is to use amotivational speaker that claims to be a self-made millionaire. The speakerwill give you a rousing speech about how he went from living on welfare tobecoming a multimillionaire by employing a trading strategy or buying aparticular investment.


The speakeris often an actor or professional salesman who makes his living giving suchspeeches. Many seminar promoters deliberately hire individuals that look goodand speak well. They make sure the speaker is wearing expensive clothes and isseen driving up to the seminar location in a really expensive car. If thespeaker is a woman she’ll be wearing a lot of expensive jewelry. In many casesthe speaker knows little or nothing about the investment he or she’s justreading a script.


If this wasnot bad enough many seminars employ experts that claim to have fancy degrees orfinancial knowledge. The expert will follow the speaker and present evidence ofhow great the investment is and how it will work. Like the speaker the expertis also a paid actor who is putting on a show. His job is to make theinvestment sound real.


FreeMeal, Free Booze and High Pressure

The job ofthe speaker and expert is to warm you up and get you ready to buy the product.They are usually followed by a salesman that gives a presentation on theinvestment and how wonderful it is. This presentation usually only containspart of the story, it shows you the guy made several million dollars off of theinvestment not all the people that lost their money. The risks are never mentionedand such details as a lack of SECregistration are conveniently left out.


The seminaris conducted in such a way as to make the presentation look good andlegitimate. The seminar promoters use a number of tricks to enhance the productthat you should be aware of.


They mayhave shills or plants in the audience. These are people who are paid to actlike normal people tell you how wonderful the investment is or how much theymade from it. These people might be other con artists that are in on the scam. Inthe case of a Ponzi scheme past investors that have been paid off to make thefraud look real are deliberately invited to tell their stories.


In manycases the seminar is held at a fancy hotel and a free meal is offered with it. Mostseminar promoters also make sure that the drinks including the alcoholic beveragesare free. They will not begin the presentation until everybody has eaten thenice meal and drank a lot of the free booze. They want people to be comfortableand off guard when the sales talk beings.


Thefraudsters’ final trick is to pressure the seminar guests to buy right then andthere. They will claim that what they are pushing is a limited opportunity. Thereason for this is obvious they want to prevent people from thinking about thepresentation or researching the investment. They try to get you to get out yourcheckbook right then and there. To enhance the illusion a number of the shillsmay buy more of the investment right then.


The lessonhere is obvious buy investments through normal channels such as websites,brokers and dealers. You may not get a free meal out of it but you will getlegitimate investments that will meet your needs.


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