SCAMS IN TRADING BUSINESS

TradingFunda

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#1
There are many people who want to earn money in stock market and most of them try their luck in derivative segment(future and option). F&O is attractive to them because there is opportunity to earn more than 40-50 percent within a month but at the same time their risk of losing entire capital too. Everyone loves money, I mean quick money and avoid compounded annual growth which comes slowly in early years and grow rapidly in after 4-5 years. The only reason not to go for long term is that fear of crash. Here comes the opportunity for scammers. They make you believe that there is few strategy if they can follow properly you could be rich in short time. They show you screenshot and live trading videos to make you believe that they are making such handsome profit. And then retail investors who are new to market get trapped to their scam. I would like to write in detail here that kind of scams in stock market.

1) LIVE TRADING SCAMS- MT$ and ME broker provides replay of price action. It means you can replay the live chart later in a day and can put voice recording. Viewers think that this is live recorded video because it is presented that way, but reality is that scammer first replay the chart after knowing the price action and then put on recording to show you that he/she knows what is going to happen. There is recording option too. They record multiple charts on different screens and then put audio later, make some editing and and put on youtube to attract retail traders.

2) SCREENSHOT OF PROFITABLE CALLS- First scammer put both buy and sell call at the same time on whatsapp or telegram. Now price either can go up or down. If it goes up then scammer write book profit attaching the buy call or if it goes down, he will write book profit with attaching sell call. Now in their free group chat he will post cropped screenshot showing that he gave profitable call in his paid group. Second, he download profitable screenshot from other large groups where people post screenshot of their profit. Few loss making screenshot are posted too so that it doesn't look fake ones and you will believe he is genuine who post loss making screenshot too.

Read complete --> Book Summary Psychology of Money

3) 3-4 DAYS TRIAL- Scammer make two different group here and send buy and sell call simultaneously. Means one group get buy call and another group will get sell call on same scrip. On second day, he will again divide profitable group into two and again do the same, gives buy and sell call on same scrip simultaneously. The process will go for maximum 4 days. At the end few guys will get only profitable calls and they will think scammer as magician who can give only profitable calls. Then retail traders join for training course or tips ending with huge loss.

First and most important question we must ask that why someone is going to tell you his/her own secret ? Suppose I have magic rod to make profit then why should I share that rod with you instead of making profit for myself ? The point is there is no short cut in this market. You can make money but slow and steady win the race. To my experience making more than 10 percent per month on your capital is almost near to impossible. Its not because you can't make that rate of return. Its because money brings many unavoidable problems, mostly psychological ones which brings down your profitability.

It is advisable from my side to look for a good mentor who can guide you properly and make your journey profitable in long term, and avoid those who promise to make you rich in short term. Goal must be to get benefit of compounding in longer term rather than making quick bucks. The problem is that there are many who want to learn stock market but they are in fear how to start and from where. These scammers have made it difficult for them.
 
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#2
Thanks Sir for guiding. I am sufferer of these type of scams.

I have lost 4lakhs capital then understood it.
 
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