As I mentioned in my previous blog post, the first thing I did when decided to do some trading, was to look for the easiest way to make money. I tried to find the "best trading strategy", the "best training course", and the best "trade signal service" on the Internet. In other words, I wanted to get straight to the point, to cut the chase. Like we all do when we want the get the desired outcome as fast as possible.
I guess I'm not the only "wise guy” who went that road. But before I move on with sharing my trading processes and tips I acquired over 15 years of trading, I want to point out some Red Flags of the business you should be aware of. So, here we go:
- Strategies that show fantastic historical results without any substantial losses. Someone who practically guarantees you a positive outcome regardless of your experience.
- Signal services “gurus” who don't have a trading log. What do they really offer? Loud slogans, beautiful websites, but no track record.
- Silver bullet type promises. You won't have to spend countless hours at your computer screen. Everything you need is in our program. All you have to do is follow the instructions.
- The strategy has been developed with the help of experienced Hedge fund managers. These people have worked for a big bank (name dropping is a key, of course) etc. Try to find more about these “experts” and you’ll end up finding nothing.
- Casino strategies that teach you to increase your bet after the lost deal. Like, after losing a dollar in the first transaction, you bet two dollars in the next transaction, then four, etc. Until you have a winning deal that will cover all your previous losses.
- A mentor who markets a "dream". The dream of being able to trade financial instruments while sitting on the beach or a yacht. This is your guide to financial independence he claims, showing off some beautiful pictures of the newest and the most expensive cars lining up for him on Instagram. If I can do it, so could you! Just subscribe or buy the training program!
- The most advanced trading bots. It doesn’t matter how the market is going to behave, all you need is to install this advanced mathematical trading tool and money will start rolling into your account by itself.
- Training courses without risk management included. No successful trader can do without risk management!
- High yield promises. On average 10% per month etc. Anyone who promises inadequate profit margins is dangerous! On average hedge funds aiming for about 25-30% yearly returns. Although hedge funds have been performing within the 10-15% range in recent years. According to Hedge Fund Research data, the average hedge fund was down to 6.7% in 2018.
- Brokerage companies that offer high leverage. Someone who offers you various disproportionate bonuses when you open an account: 30% cash bonus, in addition to your deposit money etc.
- Offshore brokerage companies and companies that work without a license.
- Intrusive telemarketing brokers.
And ALWAYS look for references!
Stay tuned!
Agris