Hi guys. How to identify a scam!
Well, a scam is somebody who’s taking advantage of ourselves, who’s trying to take advantage of promoting something that is different from what is shown.
In trading, there are many so-called gurus, who are actually scams and I can tell you they have many things in common.
So let’s try to have a look in general at what might be an alert to pay attention to.
First of all the percentages they promise or tell out of their personal trading.
The higher the higher the alert. Institutional investors are more than happy with 20% a year so obviously, if somebody comes and says he is performing 200%, that sounds a bit weird.
So you might say: “You yourself say…”. Yes, but in my case, I often said this, those are contests, and in a contest, everything is taken to the maximum level.
And those are different from the day by day trading which is my standard activity.
Second, somehow linked to this is the way they present themselves. Private jet, yacht, nice balcony with sea sight nice girls around, Lamborghini all things like this.
I don’t mean that everybody who’s showing this is necessarily a scam and maybe he has those benefits and much more, but why should they show this to promote trading?
Obviously showing all this, they try to pull our greed gear so that we accept their mentorship trying to emulate what we saw in there promotion because we imagine ourselves on a private jet and so on.
So greed is driving us to follow these people. Also, another thing that has to be said is… be careful about those who explain the reason why they teach in terms of being sort of a benefit for the world.
People who claim that they do this because they helped so many people and so many people were grateful and happy because their lives were changed in positive thanks to the help of the guru, all these things sound again a bit excessive.
So when the reason explained is like this, beware of this guru because probably he is not telling the complete truth. Probably, maybe it’s true, I’m not obviously accusing anybody, I’m just telling you what generally I have seen around the world.
Track record. Try to get a verified track record. I don’t mean they have to show their personal account, I don’t either show my account because that’s my personal account, I’m not compelled and I have no intention to tell in public how much money I trade personally.
In private I’ve done it in some cases, but publicly you understand it might also be dangerous in some cases, but you need in any case some sort of verification. In my case, I have all the verified track records of the championships. In that case, we knew how much money we had in the start, how much money we had at the end, all the transactions and that is public, that is verified and public.
So something like that needs to be there and normally you don’t get it. You get only tons of excuses from these people just to justify why they are not showing you anything you can verify. And also in case they sell strategies saying: “Yeah I’ve not applied this myself because it was on my cousin’s account but my cousin now migrated to South Africa” or things like that you know.
Then another thing, the way they react to blames or questions, arguments. Normally if you blame something or if you argue about something, the answer tries to mix up the whole thing and makes you feel guilty, I mean they come and say: “Oh you come here and you concentrate on me rather than concentrating on yourself, you don’t look inside yourself so that you can grow and you spend your time trying to find what’s wrong in me!. This is the wrong attitude, you have a wrong mental attitude your mindset is completely wrong and negative!”
So in front also of the complete audience obviously you feel guilty or wrong. Well, you probably were absolutely right in trying to spot something that was not exactly clear in the process that was explained. So this is another point which is pretty much important.
Unfortunately, trading is full of these guys and one sector where there is even more about this is Price Action.
Again, I’m not claiming all Price Action gurus are scams, absolutely not, but I can tell you that most of them are not completely clear in what they promote and the way they trade. Most of them don’t look like being really trading themselves and again all these ways of defending themselves can be found in their boards, in their blogs or you don’t find anything because everything which is negative has been removed. In any case, I only want to tell you: “Be careful!” Try really to be pragmatic and try to go directly to the point, try to understand if something that is shown can be real or not. If something stinks it’s probably because it’s not very pure.
That’s it, I hope it helped, I hope it helps to avoid some problems. Keep on following me, we see you next time Ciao Ciao from Andrea Unger.