hey what's going on i'm going to do a quick review of Karen
Foo and i'm going to provide my opinion
this is David Jaffee from beststockstrategy.com i'm actually
recording this at 12 05 a.m
my wife is asleep the au pair is asleep and i just needed
some time where things are like really quiet and i can
think very clearly and just be calm because typically during the day things
tend to have tend to be a little bit hectic
so in any case um i've watched about say like one or two hours of Karen Foo's
videos and to be quite honest i actually like
her i think um she has a lot of good content regarding
like mental health like depression she apparently has like a finance degree
which i mean let's be honest it's not really that important
i went to an ivy league university graduated with a 3.8 gpa
worked at some of the world's most prestigious investment banks and
the reality is it all that stuff is nice to tell people
but it doesn't really mean much you know i think that there's a lot of conspiracy
theorists out there who think that goldman sachs and morgan stanley and
blackstone that they have way more control over markets than
they really do um but at the end of the day i mean i
guess it's nice that she does have a degree in finance even though
it really is not going to help her in trading i definitely like
that she talks about depression and some of her depression videos and like mental
health videos are actually really good like she gives good advice
i also like i saw one of her videos where it said something about like
taking losses like a pro and um trading
where you're actually going to have a positive expected outcome
the issue that i have with Karen Foo is that in my opinion i think she's a fraud in
that she is unfortunately trading the wrong
product i mean retail forex trading is extremely
dangerous and it's probably like the worst thing that
a re that a retail trader could possibly engage in primarily because there's so
much risk in retail forex traders where there's
actually substantial counterparty risk where oftentimes the exchange
that the retail trader actually deposits money into is trading against them
and directly profiting from the traders losses now
i know that there are a few legitimate exchanges that offer forex like one that
just jumps out the page i mean that that i know is interactive brokers which
are one of the largest companies you know they're
publicly traded company but for the most part
a lot of companies do not offer retail forex trading and part of the
reason is that with the amount of leverage that is
extended to retail forex shoulders they always
have a tendency to blow up their accounts in my opinion Karen Foo
is a fraud and i believe that she's trying to copy and mimic
Adam Khoo so adam khoo where i mean this guy Adam Khoo
self-reports that he's worth like a billion dollars which to me is like
hilarious um you know my opinion adam coo is one
of the biggest frauds in the industry and i think that Karen Foo in my opinion
is trying to emulate and mimic him now um from watching her videos
i do think that she has good information if you look at some of her playlists
um you know for like mental health and things like that i just
unfortunately in my opinion i just don't think that she's a profitable trader
herself i'd be more than happy to take down this
video if she sends me some legitimate proof i
mean in my videos i sent you a full screen recording of
all my trades and then i also logged in to my account
on tastyworks downloaded the specific trading
statement for the year 2019 and then opened it up
in the browser so you know that there's no games being played because i logged
into my account and then specifically downloaded and
then opened it up if she can do something like that
and prove to me that she's actually a profitable forex trader then i'd be
happy to delete this video i would just like
to see some type of history whether it be like six months or a year
because in my opinion the likelihood that she's a profitable retail forex
trader is close to zero and also in my opinion the
probability that really any of her students
are profitable retail forex traders is virtually zero
now there have been numerous studies out there that claim that retail
day traders um with close to 100 certainty end up losing money and retail
forex traders are even worse so um let me let me show you some of the
videos
you know i do like some of her vlogs um i think she has a lot of potential i
just think that she's really in the wrong
product and i think that she is misleading a lot of people
now look everyone makes mistakes nobody's perfect
you know there's nobody who's perfect unless they're they're lying to you
i just really wish that Karen Foo would switch over from being in the dark side
to actually selling option premium because
i think she has a lot of potential and um
you know everyone makes mistakes so she's like a little bit low on money
and that's fine but i don't know why she chose forex like retail forex traders
don't make money
i mean i even like singapore i remember going to the marina bay sands
and meeting some people there it was a great experience i like singapore
i've been to malaysia as well i think that Karen Foo again
you know has a lot of potential but i think that
my gut feeling is she's probably been been like treated poorly and her way
of validating herself is to make as much money as possible
and i'm all for people making money i just don't want them to make money
where they're actually encouraging other people to hurt themselves
and i understand that Karen Foo does a lot of good things so i'm not gonna
this is a more positive review than i usually give because
i think she has great motivational advice i think that she's a good speaker
i think that she also provides great health advice but at the
same time retail forex trading is probably
the worst product besides like well i would say rip
a retail forex trading is probably one of the worst things that you could
possibly do there's no learning component there's no
technical analysis they're going to be able to use
it's just um it's just really bad you know how to trade the rsi divergence
strategy i mean like seriously all right let me
show you real quick the trading studies that that they apply
to day trading but remember that retail forex trading
is actually much worse all right so here's the recent day trading study
this came out just about a year ago from brazil
and as you can see we show that is virtually impossible for an individual a
day trade for a living 97 percent of them lost money
only 0.4 percent earned more than a bank teller
so pretty much you're virtually guaranteed to lose money and if you do
you're going to earn less the minimum wage
and then also it says here that the results were actually overstated because
they didn't take into account trades that were held
for more than one day and then they also had a
time constraint so they believe that the actual results are actually
worse than the stated results the people they downgrade and they think
that brazil and the many of vasquez are not
liquid contracts they're actually just as liquid
than the s p 500 they are the third most traded equity
index futures and options contracts in the world
they're actually more liquid than the e-mini s p
and the s p 500 index
they attribute and liken day trading as similar to casino
roulette there's no improvement so there's no
educational component in day trading and remember Karen Foo encourages you
to actually trade forex and as retail forex traders your
probability of profit is substantially worse
so i mean i don't know how you can be substantially worse than virtually
guaranteed to lose money but pretty much in my opinion i would
estimate that the likelihood that any of her students make money
over the long term by trading 4x is probably
close to zero that's my opinion you're welcome to disregard it
there's a summary there's no evidence of learning
it may not be sufficient to discard day trading as a possible career
those that made money earn less than minimum wage
and pretty much i mean the statisti those that actually made money they were
statistical outliers and they did so with
extremely high volatility in their returns
and over time it's likely that those people would have lost money as well
as you can see the standard deviation of their daily profit range from
six hundred and thirty two dollars to thirty three hundred and eight dollars
here's where i was talking about the reported performance is likely better
than the actual day trading performance is likely to be
overestimated for two reasons first we do not consider income taxes and other
relevant expenses such as cost of trading platforms and
courses second we only consider days in which
the individual purchases and sells the mini will vespa contract in exactly the
same quantity for instance we do not consider a day in
which an individual purchases five contracts and sells
rather purchases 10 and sells five and according to prior research retail
day traders are reluctant to close losing day trades due to the disposition
effect because of these two reasons retail day
traders actual performance is likely to be
even worse than what we report below and what they report below
is pretty damn dismal so in turn patterns like this
are are usually found in gambling activities such as casino roulette
so that's pretty much what you're doing when you day trade and
as i said it's worse when you're going to be trading forex
because the odds are not in your favor you can read the study if you so desire
they conclude that it's virtually impossible for an individual to d to day
trade for a living contrary to what brokerage specialists and course
providers often claim and hear all the references so yeah my
opinion Karen Foo is a scam
i definitely would not encourage those people to
trade and become retail forex traders but if you want to disregard everything
i say and you want to follow her and you believe in her then you're welcome to go
do it
so David Jaffee with BestStockStrategy.com if you have any
questions leave a comment below thank you so much for watching this
video and i appreciate your attention