Day trading is a scam. David Jaffee with BestStockStrategy.com and in this
video I'm going to teach you why day trading is a scam and if you're a retail
trader and you're watching this with the hopes of turning a little bit of money
into a lot of money, like $2,000 into 2 million, you might as well just take that
money and go on vacation or go to a casino or do something that will
actually bring you enjoyment because the probability of you being a successful
day trader is virtually zero and the probability that you're going to lose
all your money is practically a hundred percent and even in the small likelihood
that you are actually going to make money by day trading which happens
around 0.2 percent of the time around 500 out of 360 thousand
you're only going to earn 5% over simply holding the s py index so day trading is
great if you want to learn if you want to lose all your money but what happens
on YouTube is you see all these fake gurus tell you that they're able to turn
a ton of money into rather a small amount of money into a ton of money what
they don't tell you is that it's a complete fraud you are the product what
they're doing is they're buying low float stocks so stocks that have very
little volume then they aggregate as many followers as possible they take a
small position in this stock then they send out an alert to their subscribers
and then their subscribers runt rush in and bid up the price of this security
and then the Guru ends up realizing a huge profit on this stock and he sells
he sells into the strengths of all of the subscribers who purchased the stock
as a result all the subscribers are end up holding the bag
and they lose money whereas the fake guru is the one who profits by taking
their money and the worst part about this is that it's actually all legal
because what these fake gurus do is they tell you that they are educating you so
they're not subject to any disciplinary action from FINRA or the SEC and they
actually charge you for education they tell you that there are three magical
chart patterns or that they're super special and that they were able to turn
two thousand and two two million but the reality is that you are going to lose
your money because what they're doing is they're giving you alerts for stocks and
then they're pretty much waiting for you to come in buy the stock and increase
the price which increases the price of the stock that they're holding that way
they can sell it back to you at an inflated cost and actually it gets a lot
worse than this because a lot of these people are actually criminals like
probably be most successful while totem pole or the most the the people on
YouTube who have the greatest presence when it comes to day trading one of the
owners of the company is actually a convicted child he was convicted of lewd
conduct this individual was arrested and charged with sexual penetration of a
child and he was actually convicted of two counts of lewd conduct he was
convicted and I may or I may not link to this another huge YouTube fake guru
claim that they made around a hundred and twenty percent profit on January 1st
however the stock market is closed on January 1st one of the students rather
one of the teachers in this company was actually arrested in I think it was
Ontario Canada I'm not a hundred percent sure and charged with defrauding a
cosmetics company out of seven hundred thousand dollars I'm not sure
what the disposition was of that specific case but the the weird thing is
that the individual who started this company that I told you before where one
of the owners was convicted of lewd conduct and child mullah and I believe
well actually I'm not sure it was child molestation but I know that it was two
counts of lewd conduct and I have the PI actually have the court order and the
conviction which again I might link to and I might not but what I'm telling you
is that these people actually worked together so the founder of the first
company who one of the owners is it can is a convicted child molester was then
working for the other company who hired the educator who was then charged with
stealing seven hundred thousand dollars from the cosmetics company again these
are the type of people that you're dealing with you need to be extremely
careful because all of them are extremely good marketing and using
social dynamics and building rapport and getting you to trust them but there are
tons of websites out there that show you that these people are completely
fraudulent and what these people also do is they rely upon fake reviews if you go
on some websites like guru there's this guy guru leaks one he has a Twitter
handle you can read about all of these fake gurus guru leaks one you can also
go to trading schools dot o-r-g trading schools dot org that's trad ing trading
schools with an S on the back or on the end of school so it's trading schools
are cheap and you can read about a lot of these fake gurus but I'm telling you
you really have to be careful because if you believe that you're going to make
money by day trading remember that you are the product they are charging you
for education and then when you actually start trading the alerts that they send
you are going to be low float stocks that you're going to
invest in you're then going to increase the price of these low float securities
and then once the stock is bid up to a certain point because all the followers
have already who have already jumped in the fake guru is then going to liquidy
and sell all of his shares for a huge profit while all of his subscribers who
actually pay for his education are going to suffer enormous losses there have
been some some some subjective evidence regarding some of the people from I
think it was sure trader who indicated that every single one of the students
when he analyzed the accounts of one of the major fake gurus on YouTube lost
money this is also available on the Twitter feed from guru leaks one and I'm
going to link to that in the description below but again you have to be really
careful and there's also a study from I think it was California it was from the
Taiwan Stock Exchange it was done in conjunction in conjunction with our
believe it was Berkeley where they actually analyzed 360,000 day traders
and they found that the average day trader lost 15% every single year only
500 out of 360,000 day traders were profitable I think that's around ninety
nine point seven percent of day traders lost money now if you're in the top
point two or 0.3% you didn't turn five hundred dollars into two million no what
they found was that these most successful traders the top 500 at a
three hundred and sixty thousand they made five percent above holding the spui
index five percent that's nothing that pretty much means that if you watching
this video he'll be s py index and then sold covered calls against it
you would be more successful than virtually 100 percent of the retail day
traders out there so I don't know why you would do that to yourself it's
almost like banging your head up against the wall take that money that you're
going to potentially invest and you're going to lose by day trading and learn a
legitimate strategy if you want to earn consistent money in the stock market you
can go to bestop.com and enter in your email address and receive $400 worth of
free training materials additionally if you don't want to do that and you're
dead set on learning to day trade then you might as well just take your money
and then take a vacation because not only am I going to save you from losing
all the money that you're going to try to invest in these fake gurus but
instead you're also going to experience a substantial amount of stress because
you're going to put your faith and trust in them and then they are going to
backstab you and betray your confidence by telling you to buy stocks only to
then have that stock be bid up and then sell you at the artificially inflated
cost or at the artificially inflated price and because they are not
registered investment advisors this is all legal for them to do this they are
not regulated by the FCC they are not regulated by FINRA and its really buyer
beware so if you want to learn a legitimate strategy the only strategy
that I believe is legitimate and which I've seen from my personal experience
and from my punters of students is to sell option we know all the other stuff
whether it's forex trading or day trading or swing trading or penny stocks
they are all scams David Jaffee with BestStockStrategy.com please
like this video and if you have any questions let me know