$10,000 Trading Profit? Take It...
If you're ready to get scammed.
Read on Substack
Read time - Less than 10 minutes
Imagine someone telling you that you’ll make millions in no time.
Who won’t be tempted by it?
Today, I will share what I’ve experienced as a former trader and the 4 signs of a trading scam.
In the world of finance, beginners are usually split into 3 categories:
Those who know nothing
Those who know something but aren’t sure
Those who know something but choose to ignore it
All 3 categories are target audiences for scammers.
When you start a “trading mentorship” with the hope of making more money by scamming and not the trading profits…
You want someone clueless yet dreamy of having a pile of cash to sleep on.
Most scam victims have this characteristic.
I was one of them, who believed in the promise of becoming a millionaire trader just by analysing charts.
But in the process of trading, I:
Had anxious nights
Wasted precious time
Glued my eyes to the charts
Blown a bank account
It was costly both financially and mentally.
If you don’t want to go through like I did, here are 4 signs of a trading scam:
1) They confuse investing with trading
If a "mentor" is talking about financial crashes and preaching how well he predicts them, that is trading, not investing.
Trading is trying to make a quick buck off the movements of the market (highly unpredictable).
Investing is putting your money into an asset for the long term.
If someone tells you that you’re investing by trading, that’s a scammer.
2) They have a groundbreaking "secret trading system"
A list of “secret trading systems” I heard of:
Secret circle method
Secret horoscope method
Secret AI method
Secret convex method
I could name more, but the gist is they talk about how their system is like a money printing machine or easy money.
Too good to be true? It surely is.
3) They're never held accountable
They can predict how high, how low, or in which direction the market will go, but if something goes wrong they keep quiet.
Try noticing anyone who’s into trading, it’s always the profits they brag about and the losses they keep silent.
I remember when I was losing money trading forex, my “mentor” would tell me it was because of:
US presidential election
Doji candlestick
Bitcoin disruption
Lack of “psychology”
But it is NEVER his fault or the fact that your luck is higher in casino gambling than in day trading (not encouraging you to gamble).
4) They charge an absurdly high price
These scammers usually charge $4997 to $55,000 for a “premium mentorship” program.
Here’s the thing: If you put this $4997 or $55,000 into the S&P 500, you would make a ton more return than all of the “trading mentors”.
And don’t you think that by giving up your hard-earned savings to them, you are making them richer instead?
Let that sink in…
The truth is, you can earn more than them by long-term investing in low-cost funds, like the S&P 500 or the Total World Stock Index.
Always choose consistent returns over quick profits.
Conclusion
The world of finance isn’t complicated.
But because it is filled with profit-greedy scammers, it becomes complicated and misleading.
Here are the 4 signs of a scammer:
They confuse investing with trading
They have a groundbreaking "secret trading system"
They're never held accountable
They charge an absurdly high price
See you next week.
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