Today we talk about trading scams, but not the usual scams, I want you to understand how the smartest scammers operate.
Let’s start from the assumption that these are scammers who have been trading for a while and obviously can’t make money and that their targets are foolish fools attracted by the fact that these scammers are profitable and will multiply their money, of course the scammers are beginners losers attracted by the advertisements of easy earnings. Not exactly geniuses.
How do the scammers make the scammers realize that they have a profitable system in order to attract them? Just take a background, a profitable trading history, just google or myfxbook and take a screenshot or link to some profitable account with equity starting from bottom/left to top/right and with dizzying profits like 1150%, 176% etc etc. etc. Otherwise you do backtests with metatraders, but beware they are not real backtests, they are ex post tests knowing how the market has moved! You make the test go in manual and you place orders on the minimum and maximum and you make mega profits, then you print the report and you prove to have “the story”.
Okay, how do they can transfer money from the pockets of greedy traders to own? There are various methods, leaving aside the more primitive and crude ones, I would like to focus on the most ingenious and fashionable methods in this period: the first is to involve people by directing them to subscribe to the broker “friend” through partnership codes and then the famous PAMM and MAM (a unique account where many put money and an unidentified guy manages it for them with unknown methods or through expert advisor trades the accounts of the unsuspecting). Obviously for EU regulation is not so simple and there are still many ways to bypass the regulation.
Okay created the story, cast the nets and caught many fish, how do our heroes now “earn” the money of the poor greedy and foolish savers? Simple, they start to trade at their best without using STOP LOSS and going against the trend, you should now understand how they make money: losing! Where does that lost money go? In the pockets of the broker “appears” who, after agreement with the founder of PAMM/MAM, recognizes a percentage of losses to the scammer who gains on the losses of his clients. I have seen famous PAMMs taking margin call or burn accounts that in previous years had performed 1000% and now happen to go below 40%! Obviously the brokers willing to do this are brokers based in offshore tax havens and the founders of these PAMMs are resident in who knows what country in South America or East Asia. As in: “Sue them later”.
So ultimately do not be fooled by these characters, in trading you go ahead only if you are honest, in this case honest with yourself: just ask yourself: do I have time, money, knowledge and skills that can allow me to earn? If the answer is no, you must be honest with yourself and not use shortcuts by entrusting your money to strangers.
TRADING SM.ART 