why is the trading community so full of scammers and BS??

[HeavLeighGill]

I've only been trading for a few years myself so it's been this way as long as I can remember. I think a lot of scammers see the beginners flooding in looking for quick ways to make money and some are desperate so it's easier to pass off these scams. Those with lack of knowledge are likely to pay for shady mentors, invest in an account manager, open an account with a new untrustworthy broker, and so on. The bad thing is that it's getting more difficult to distinguish what is and isn't a scam. I remember back in the earlier 2000's scams were pretty obvious, but these days some things make you wonder and it isn't always so obvious.

 

[Attila the trader]

I've only been trading for a few years myself so it's been this way as long as I can remember. I think a lot of scammers see the beginners flooding in looking for quick ways to make money and some are desperate so it's easier to pass off these scams. Those with lack of knowledge are likely to pay for shady mentors, invest in an account manager, open an account with a new untrustworthy broker, and so on. The bad thing is that it's getting more difficult to distinguish what is and isn't a scam. I remember back in the earlier 2000's scams were pretty obvious, but these days some things make you wonder and it isn't always so obvious.

the amount of scams have made me lose trust paid courses , mentors etc. never paid a dime for trading resources , there may be good ones out there , then again you can learn so much for free !

 

[sharabela]

Forex market is very vibrant. People look at the market and start trading to make money quickly. They lose of course and search for alternatives. This is where scammers come and fool them. It is mainly our greed where we forget to use our common sense being responsible for this. If they were so successful, why would they sell it door to door. They would only concentrate in making money by themselves, would not they?

 

[WalletInvestor]

A lot of scammers also prey on people who are frustrated or desperate - there's a whole lot of recovery room scammers who target people who were scammed previously, promising them they can get the money back in return for some pay. I suppose all they see is easy money there.

 

[PipjappBevy]

Scammers are like viruses, they are present everywhere. We need to be more careful with our choices to avoid being scammed.

 

[wmram]

Well, you have to get that proper knowledge somewhere. " become easy prey" the transaction that takes place is a result of a mutual agreement. When you're new to something, there's a certain comfort that one gets from interacting with a perceived authority figure. Ok so it might have been a silly purchase in hindsight, but it's part of the learning process.

 

[Mumpsimus]

If you use the various Gold Rushes as analogous to the whole get-rich-quick feel of the trading space then this might lend a clearer perspective. Over 90% of miners made little or nothing despite enormous time and effort, whereas the traders who sold the picks and shovels at vastly inflated prices (not forgetting the likes of Levi Strauss) and various other more prolific swindlers often became very wealthy.

 

[JohnDesey]

There are many reasons that the Internet is now so full of people that want to teach you how to trade. Some are legit most are scams. The bottom line is it takes thousands and thousands of hours to figure it out. You’ve got a put in the hard work and the years of time

 

[tomorton]

There are many reasons that the Internet is now so full of people that want to teach you how to trade. Some are legit most are scams. The bottom line is it takes thousands and thousands of hours to figure it out. You’ve got a put in the hard work and the years of time

I would love to see some evidence that it must absolutely take thousands of hours to become a competent trader.

This belief is one of the main motivating factors behind the success of the cowboys we all love to complain about.

 

[WalletInvestor]

But the forex market is decentralized.

I think that's why they said centralisation is lacking.

 

[Smith2525]

It's by far the largest market in the world. It's naturally going to attract the full spectrum of society.
Every market does, but when it's the biggest you will notice them a lot more!

 

[JohnnyForex]

Why is the trading community so full of scammers and BS?​

I think the answer is extremely simple: Because these "scams" work and there's a constant supply of new gullible traders who fall for it.

Personally, I never went for any scams, but I definitely was led to believe that some people were better than they led you on to think. This have made me cynical to the point where I don't really trust what anyone says online. I have made contact with a few traders who seem to be the real deal, but at the end of the day they've shared no secrets and I've seen no statements, so they might as well be fake for all I know.

Bottom line: Don't believe anyone or anything unless you can prove or verify it yourself. Even if it SEEMS logical - don't assume anything.

 

[tomorton]

I think many traders are being lazy and self-congratulatory when they deride course and software vendors as scammers.

A scam is when something is sold that can not work. It would be helpful for members of T2W to hear of actual courses or products or services or strategies which cannot possibly work. Then they could avoid them.

 

[JohnnyForex]

I think many traders are being lazy and self-congratulatory when they deride course and software vendors as scammers.

A scam is when something is sold that can not work. It would be helpful for members of T2W to hear of actual courses or products or services or strategies which cannot possibly work. Then they could avoid them.

Equally, one could argue that traders who buy such courses are the lazy ones.

Seriously, you can't deny that the vast mjority of courses are of little to no value and that some of them are even flat out scams?

 

[JohnnyForex]

Here's the most recent example I can offer and I'll keep the details out of it in order to not out anyone, but I can assure you all it's 100 % true.

A well respected sell side analyst publishes a book on how to achieve success in the markets using mostly classical TA. I haven't read the book, but I've seen some of his free analysis over the years and it's pretty much common TA where he's great at explaining what price DID. MAs, trend lines, S/R, etc.

The same analyst leaves his analyst job to start his own fund. The result for 2021? A net loss! I've read his market updates and there's always some nice excuse for why each month pretty much was a net loss.

To be honest, I'm sure he's doing WAY better than most published authors on the markets.

Another guy I followed in the past (but never paid up for his premium content) I also discovered were doing pretty bad in the markets. Considering how he's selling expensive courses I suppose it's a reason he's doing that and not cleaning up in the market place.

Did anyone see Jim Simons trying to teach people to trade?

 

[Trader333]

Did anyone see Jim Simons trying to teach people to trade?

Not specifically and my understanding is that he uses a quant approach which is something that appeals to me although I have not yet investigated it further. What is your view ?

 

[JohnnyForex]

Not specifically and my understanding is that he uses a quant approach which is something that appeals to me although I have not yet investigated it further. What is your view ?

The question about Simons was rhetorical and meant to illustrate a point - which is that those who have something worthwhile monetize it and make a killing with it in the market. They have no interest in selling that knowledge as an educational service.

Personally, I'm oriented towards the quant approach myself having a statistical trading model at my hands, although I sadly still use a fair bit of discretion.

 

[Trader333]

Personally, I'm oriented towards the quant approach myself having a statistical trading model at my hands, although I sadly still use a fair bit of discretion.

That was the same situation that Simons started with when his approach didn't initially work. Maybe you will one day be the next Simons if you are able to eliminate the discretionary part of your trading approach

 

[JohnnyForex]

That was the same situation that Simons started with when his approach didn't initially work. Maybe you will one day be the next Simons if you are able to eliminate the discretionary part of your trading approach

I won't hold my breath, but I am encouraged by the fact that Simons and his teams spent about a decade before they arrived at their final model.

 

[tomorton]

Equally, one could argue that traders who buy such courses are the lazy ones.

Seriously, you can't deny that the vast mjority of courses are of little to no value and that some of them are even flat out scams?

I have not come to a conclusion because nobody has presented any evidence.