THE TRADING FALSE
It’s getting to that festive time of year when, in general, people are being more cautious with their money.
The result of such actions apparently merits more desperate marketing tactics by some “trading educators” and “experienced professionals”.
My social media is naturally flooded with slimy adverts trying to grab my attention due to my trading activity online. And I wanted to write something to put a common false prophecy to bed - so if you want to potentially save yourself money I encourage you to read on.
I am not going to finger-point at specific names (to save myself the hassle of any backlash), but what I have been seeing more and more of are claims along the lines of...
“ FIND OUT HOW I TURNED $2,000 INTO OVER $2,000,000 IN 1 YEAR! ”
Let’s break this return down – a yearly growth of 100,000% is the result of a compounded monthly return of almost 80%.
If we apply this return to a pretty standard $100k - in year one we turn $100k into $100 million.
In year two, our $100 million is now worth $100 billion - projecting us straight above Bill Gates as the richest person in the World! Whilst the idea of this is great, I think you know where I am going with it...
It's good to be ambitious – and yes, some trades will be exceptional – but such a return is simply UNREALISTIC and LIES.
If this return was genuine (and with proper risk/money management) this bold claimant would not have the time to be advertising it. They would be too busy fighting off all funding people would be throwing at them!
Not that I wanted to insult your intelligence and assume you’re unable to spot such a nonsense claim for yourself – for my own peace of mind I had to make sure I made you aware.