A certain amount of trust is needed to make a deal with someone you don't know. While 99% of the people who trade on this site are honest and trustworthy, occasionally a person may try to take advantage of newbies. There is always the slight possibility that someone will offer to sell you a share, take your money, and disappear.
Some things you can do to help avoid getting caught:
- Before sending any money, check out the reputation of the person.
- Look up the username and see how many posts have been made in the past. Read the ones you find. No posts or very few can be a danger sign. Look at the dates of posts made.
- Use the Search the Boards feature to see what you can find.
- While electronic money payment over the internet is fast, mailing a cheque to a home address is better.
- Before sending money, send a number of emails to the seller asking questions. Get a mailing address, get a phone number, ask about others with whom he has done business in the past. Ask about the procedure and ask for a time estimate.
- If suspicious, phone him and talk to him.
- Don't buy multiple shares at the same time from someone. The less money you send, the less you could lose.
- If unsure, make a post on this boardasking if anyone has successfully bought shares from this person and how well the sale was handled.
- When you have successfully completed a buy, send an e-mail to the seller informing them you have received your share and thanking them for their help. It is not necessary to post a Thank You on the board.