Types of Trading scams (Must read)

I’m a trader with 5 years of experience who’s come to drop by all the scams in trading, and how scammers are now using technology and other new techniques.

This post is a bit long, if you’re a lazy reader copy the post and create a pdf or document to play it on photobook app or others which can play audios. I usually don’t ask for this but please upvote the post so everyone in here is aware of the fake PnLs that some scammers now have.

Typically a good measure of consistent profitability for retail trading is a trade history at least 100 trades on 1 year, and should have +50% winrate.

I disagree with many traders who say you can be profitable with lower than 50% winrate as long as you aim for high profit targets (high reward to risk RR ratio). It doesn’t make sense to me how you can get a guarantee of high RR ratio with momentum against you (causing you low winrate).

Many traders including some experts and I believe you need an edge in trading (something which happens more often than not – 50%+ winrate) for consistent profitability.

Why not just reverse your strategy direction to try and be profitable 🤣? ‘Price can only go up or down’. This is one point I disagree with Huddleston, though he admitted at some times to my opinion on this.

In my experience of my backtesting I saw trade histories of 6 months to be different with that of 1 year within about 5% more or less. I also saw those of 3 months to be different with those of 6 months within 5% more or less. I consider this when considering other mentors with smaller trade histories for trading basic.

I also hope you also do your own deep research on how trade histories and results can be faked and how to spot legit ones. Some good scam exposers in our industry are Tommy Anytime, Mr Scam Exposer (Rydall Ficks) and Beststockstrategy.

Trading scams and fake proof of profitability include :

1️⃣ Showing singular trades instead of trade histories (many trades being scrolled), trade histories from demo/practice accounts (not real money)

2️⃣ Showing screenshots or videos of analysis software (e.g tradezella, myfxbook, kinfo) to a demo or fake unregulated broker, or bribing the company with money (they’re not regulated)

3️⃣ Mentors/influences with a big following partner with an unregulated broker or shady broker to give home a fake account with profitable trade histories. Stay aways from IBs (marketers) of B booking brokers (conflict of interest).

4️⃣ Fake trading or trade histories from a fake white label server broker, which isn’t regulated or with a different server name spellings (like examples I showed you above on my investor passwords) as of the actual broker

5️⃣ Shady brokers creating fake trade histories in their website backoffice (not trading platform) for copy trading to copy bad trades to your account. Copy trading is a scam in nearly all cases

6️⃣ A B booking broker promoting a mentor/trader as the best trader. 🤣 Why teach people to take your money (we have one in big Zimbabwe done this and I won’t mention cause I’m feeling lazy to go to court)

7️⃣ Without the presence of good and legit trade histories people showing off cars, ‘Day in the life of a trader’ videos, piles of cash and trading interviews of traders.

8️⃣ Trade histories of small periods like a month or less

9️⃣ Making fake livestreams of trade histories using AI, if the person is really techy

🔟 Making fake screenshots or videos of profitable trade histories using AI or photo editing. Which is why these days all trade histories should have investor password on a regulated account at best, or be verified/audited broker statements

1️⃣1️⃣ Trade histories from brokers/accounts with a regulating agency of a private company and not that of a government institution (like the suspect of Pocket options broker)

1️⃣2️⃣ Fake verified broker statements verified by the employee of an unregulated broker or some unknown, Unverifiable person or company also with no reputation

1️⃣3️⃣ People on the world trading competitions who open only a few high risk trades at the beginning of the year and stop trading when the account goes in significant profit. You need to see trade histories. Trading competitions like Robbins only show the top 5 returns of the year

1️⃣4️⃣ Profitable trade histories made by pump and dump schemes of low float stocks or cryptocurrecies. You can research on this, many people explain this on the internet.

1️⃣5️⃣ All scammers exposed by scam exposing channels as long as the author isn’t biased or did bad research

1️⃣6️⃣ In most cases popular people, brokers, regulating agencies or companies with bad reviews and rating on websites of trust pilot, forex peace army and 55 brokers (below 4/5 on truspilot and below 1/5 for forex peace army in my opinion)

1️⃣7️⃣ People, brokers or companies issued warnings against them to the public by CFTC, FSCA or other government regulating agency’s websites (depending on the type of warning).

1️⃣8️⃣ Trade histories from, IBs who don’t take talk the disadvantages of retail prop firm trading (which aren’t regulated and a worse ponzi scheme) when promoting them for a commission

1️⃣9️⃣ In all cases MLM Network marketing trading companies and in most cases trading schools with more than 1 mentor. It’s not easy to employ profitable traders as they can start their own groups or schools. They can also Optimal F (high calculated risk – very high returns) they’re way to riches (or at least use aggressive calculated risk to financial independence). Any network marketing company that teaches profitable trading should be on the news for improving many people’s lives legitimately.

2️⃣0️⃣ Social media group signals providers who delete messages of their losing trade signals for everyone

2️⃣1️⃣ Trading robots were the sellers purposefully only shows a trade history the few months of a trending market on 1 instrument or a few with high correlation (moving nearly the same way) were the robot performed well

2️⃣2️⃣ Copy trading services offered by brokers connecting to a Zulu trade company for it. The company is owned by CEO of a broker who receives bribes from other brokers to show false statistics of trader’s performance on the website

2️⃣3️⃣ Brokers lying to have actual ECN/STP accounts (connecting to actual market, not B booking against them). You see this with more than 1:200 leverage, not allowing robots on Ecn markets (some Stp liquidity providers are scared of extreme returns, having negative balance protection on Ecn accounts (some STP providers can take more risk), not mentioning they act as an agent (middleman) of trades in their terms and conditions document, having many tradable instruments in the account (usually more than 1 000) and usually not mentioning on their website they have direct market access (or a similar term)

2️⃣4️⃣ Mentors who refuse to show their PnLs for ‘privacy or security issues’. There’s many other mentors willing to. Every business person will use any opportunity to market their business with proof of legitimacy, even outside of trading. A mentor with a big account can still open a small account just for proof of concept if he’s serious.

2️⃣5️⃣ YouTube livestreamers who delete livestreams with losing trades.

2️⃣6️⃣ Account managers from brokers who call you soon after you open an account with shady brokers. If they ever convince you to deposit money for copy trading they will (via disguise of another ‘profitable trader’) blow your account.

2️⃣7️⃣ Educational materials from B booking brokers. Another conflict of interest.

2️⃣8️⃣ Anyone saying 1 make 1,2 or any % interest per day, or offering any such strategy. They know nothing about trading. Straightaway mute then from your social media algorithm feed.

2️⃣9️⃣ Most traders who say that trading is mostly psychology than technical analysis. They are either gamblers (uncalculated high risk), are lazy (which may affect even their backtests) or don’t have consistent profitability yet.

3️⃣0️⃣ According to Huddleston, many smart traders and my opinion – In most cases people using old retail trading methods used by most traders (who lose money) like Support and resistance, Supply and demand, Wyckoff, some Fibonacci retracements, Depth Of Market DOM (which can be spoofed – research – institutions don’t want you to know where their orders are), Trend lines, Volume profile, Indicator strategies for trade entries and Old candlestick patterns in the candlestick Bible book. Unless if someone does the opposite of them or in a few cases combines them with some good concepts. The market makers made the price algorithm to go against these methods in this point. The strategis do low winrates and you can’t guarantee getting high reward to risk ratio on low winrates (like the people using them claim) because momentum will be against you, hence the low winrate. Unless if you’re still stubborn enough to at least accept some showing a 2, but but hopefully 3 year + profitable trade history using them.

3️⃣1️⃣ Using AI LLMs available to the public for strategies or trade signals. The CEOs of the companies will program them to only give profitable predictions to themselves, and not bring competition to their trading. Most if not all of the companies are controlled by the illuminati anyway, so would probably be threatened not to make everyone profitable, aside from good trading basics. The only way you could use AI to its full potential is if you can make your own.

3️⃣2️⃣ Scammers who show fake profitable trade histories on a computer browser, by changing figures that appear on a screen using Inspect element browser extensions. Though most people say refreshing the website page resets the modifications, there are now permanent change extensions available as I’ve heard. This is not possible with cellphones and also not on the trading platforms (eg. Metatrader, C trader or tradingview etc), making both options safer for viewers. You can research on this if you want, it’s not too complicated.

3️⃣3️⃣ Scammers in some corrupt countries bribing to get licenses to teach trading. Even though these government agencies check for profitability by law, make sure you do your own investigation.

3️⃣4️⃣ Scammers paying people who do interviews on YouTube etc to market them as a profitable mentor without proof

3️⃣5️⃣ Big payouts (withdrawals) of influences from retail prop firm trading. They only withdrew that much because they are an IB, or the prop firm knows the person with a big following can ruin their reputation faster.

Any profitable mentor will use their best form of trade history to their advantage to sell their course, like any other businessman.