Stock Market Scams

stock scams

In previous posts I have written about the risks of following stock investing hype and anything that claims unrealistic results. I understand that people are initially drawn to the stock market as a way to make quick money and easy riches, but everyone soon realizes there is NO Easy Button to push when it comes to trading and active investing.

Don’t get me wrong, with the right education and time spend learning what works, you can be successful in protesting your assets in the market and achieve market beating results. It takes some work though and unfortunately many people approach the market with the mindset of just following a newsletter or stock system they saw advertised in the back of a magazine or late night TV infomercial.

Stock Market Scams

The reason that prompted this post is I saw a perfect example people trying to find the Easy Button in the stock market. If you read the article I linked to below, you will read about how two TEENAGERS in the UK got 75,000 Investors to buy into “stock-picking robot” and follow the recommendation from it for penny stocks.

 Young Twins Charged with Faking Stock Picking Robot

It may sound ridiculous to some readers that people would actually follow this robots recommendations but there are a lot of people who see these hyped up penny stock newsletters(see link to post where I revealed one) or they get some email from a stock picking service claiming they “found” this little company that has the secret to curing cancer or is about to land a billion dollar contract that will make the company worth 100x it current $0.04 cent a share price.

Point of this message is be realistic with your expectation when investing. Don’t expect unrealistic returns if you have no plan or experience in the market. Understand that many traders who routinely beat the market will have losses but they will be much less than their winners. Find an investing style that fits you and stick to it.

There are some legitimate stock investing services and tools that can assist you with your trading but you need to understand what you are doing in the market first.

If you are new to trading, you can see my previous post, Stock Trading For Beginners

Avoid the hype.

 

 

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