3 Obvious Signals A Stock Trading Guru Might Be A Fake

[Verified Investing]

We live in the information age with millions of individuals on the internet claim to be a stock trading 'guru'. Of these millions of so called 'pro traders', maybe 5% are legitimate. The others are dreamers, fakers or outright frauds. So how is the average investor expected to sift through millions of self proclaimed 'pros', finding the elite pro traders? It all comes down to looking for three obvious signals.

 

1. Lack of Transparency: Pro Traders Handling Their Own Track Records

 

Look for a 3rd party who verifies their trades and track records. Millions of these so called 'pro traders' have their own websites. Who do you think puts up their track record? They are doing it themselves. Do you think they fudge their numbers? It is almost gaurenteed. Take a track record with a grain of salt unless there is an independent website tracking all their trades and handling their track record.

 

2. Beware of Huge Profit Claims

 

Many so called pro traders and investing gurus make claims about how much they made their membes/users last month or claim if you join you can make 100% in a month. This is always a scam used to lure you in. There is no safe way to make 100% in a month. Ultimately, if you are going to attempt to make that much, you will be taking a huge risk and the odds of losing money are high. Any so called 'pro' taking that big of a risk is not a trader or investor, the are a gambler. A smart investor takes less risk but consistently makes money. Over time this adds up to huge gains. 

 

3. Before of The Upfront Subscription Fee

 

Most so called 'pro traders' and investing swing trade website charge an upfront subscription fee. They lure you in with claims of huge profits. In many cases average investors pay as much as $100 for the month, only to get horrible trades. Verified Investing believes no upstanding website or pro trader should ever charge an upfront subscription fee. Instead, it should be done on a basis of winning trade information. For example, a pro trader should not make any money from a user unless they get profitable information. This is the ethical way a legitimate pro trader should handle it. Basically, if the pro trader helps you make money, then you reward him/her. The bottom line is, if the pro trader is a great trader, he should prefer to be paid when he gives winning information. If a Pro Trader is bad or a potential fraud, he/she will likely want your money upfront.

By Verified Investing