Recently a friend sent me a link. The link is from a forum in which a guy was ranting about how a girl actually made him lose money. All throughout the forum, readers were commenting that he was scammed, how he fell for her beauty tricks and so on. And obviously, the lady had her own version of the story.
In a nutshell, the victim, let’s conveniently call him “the guy”, handed over his money to the expert, which we shall conveniently call him “the girl”. And he lost 80k and is demanding repayment from the girl.
The guy claims of mismanagement and excessive risk taking by the girl. The girl claims that the guy overleveraged himself.
What she offers
Basically, she offers a service. She has a forex course. With a background of a 7 figure profit by her 20s, she sounds legit.
Alternatively, she offers recommended trade signals to subscribers.
Alternatively, she also offers her fund management service to consumers.
She claims that her students were able to easily make 100k, with screenshots to show that they accomplished it with a few thousand dollars in a few days.
Another testimonial shows a student ten-fold the account to $1 million within a month!!!! $100k to $1M!!!
My Own Experience
This reminds me of a personal experience with my friend. My friend was invited by his financial consultant to sit in on a investment talk about CFD. I was invited by my friend to sit in.
The talk ends off with a little service where the financial consultant has a useful lobang from Europe who will sent trade signals and all you have to do is to follow it.
Well, there are a lot of trade signals services around. Literally spamming the many investment based Facebook groups.
The service providers market their service through many different platforms. For a small fee, they will include you in a chat group. They will post trade signals regularly in this chat group.
All you have to do is to follow and prepare to huat ah!!!
Best solution for the busy guy. Don’t even have to do any homework. Just pay and get trade signals.
In Singapore, in order to be a fund manager or an advisor, one would need all sorts of qualifications and approvals from the government. I really wonder how did they managed to provide fund management service and trade advisory service. To be able to do that, it is rather amazing on their part.
Scam or not? And the risk behind it.
Many netizens condemn the girl as a scammer. Many feels that the guy to blame as well.
My take on whether it is a scam? Well, I won’t call it a scam. However, I shall not comment on the legality of the operation, although I do doubt it.
If you ask me, I do not sympathise with the guy. It is his SOLE RESPONSIBILITY over his money as well as his personal trades.
Guy Version: The girl manages his account in a risky manner and resulted in the loss of 80k.
My Take: It is a personal trading account for goodness sake. By making the decision to hand it over to someone else, one has to take on the risk as well.
Girl Version: He leverage and did not listen to her trade signals, resulting in a margin call. If he had listened to her, he would be fine.
My Take: Make your own trade decisions. Always know the rationale behind the trade. Don’t listen to someone else blindly. And, NEVER EVER LEVERAGE!!!
The biggest risk incurred by the guy is that he relied blindly on someone else for trade decisions. He was not responsible for his own money. It doesn’t matter who actually made the trade, him or her.
Trading by following the trade signals of some random person, in this case, a random girl, is one of the MOST DANGEROUS and MOST EFFICIENT way to lose your money.
Everyone wants to makes money from the financial markets. Most wants to make quick money.
Whenever a new investor asks me what is the most risky thing about the financial markets, my answer will always be “yourself”.
Quoting from our book, How to Grow Your Elephant, risk is;
At the end of the day, the guy made the decision to make the trades or pass the money over to the girl. And without knowing exactly what he is getting himself into, he is taking extremely high risk.
Quoting from Warren Buffett this time, “You never know who is swimming naked until the tide goes out.”
In another article, I tries to dissect their strategy and the possible risk behind it.
Overall, in investment and trading, it is very important to know what you are getting yourself into.
To know how to safely increase your bank account by 10-fold, you can read our book, “How to Grow Your Elephant“, which will cover topics that you need to take care of before you start investing.
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To really know how to invest, take a look at our Skillsfuture-claimable stock investment course where we cover topics on which stocks to buy and how to profit from with little capital. And I guarantee you, we do not use leverage.