How to Spot the Red Flags!

Hey everyone,

After being in the trading game for quite a few years, I've witnessed the spectrum of experiences—some good, but mostly bad and ugly. The truth is, genuine players are a rare breed in this industry, as it tends to attract its fair share of shady characters who find it easy to manipulate facts for the appearance of profitability.

The purpose of this post is to equip you with the knowledge to spot those warning signs. Let's dive in! 🚩🚩🚩🚩🚩

🚩 Beware of those flaunting daily results on their mobile MT4/MT5 with screenshots. Remember, even a broken clock is right twice a day. If they can't show you a monthly return screenshot with evidence of withdrawals, it's likely a demo account—stay cautious!

🚩 Be cautiious of Myfxbook screenshots without a provided link. These can be easily edited, and the untrustworthy exploit this by altering data before capturing a screenshot. Demand the Myfxbook link for verification.

🚩 Insist on seeing Myfxbook with track records and trading privileges—those green ticks are key. But don't be too trusting; ask for a link and even request a new comment in the section to confirm control.

🚩 Pay attention if they haven't connected their account using the paid 'Live Update' option on Myfxbook. The free version doesn't display real-time data, and most often avoid the live update, masking their true trading performance. Question vendors who skip this step.

🚩 A Telegram group that's read-only raises suspicion. If they're confident in their success, why not let members share their thoughts and experiences?

🚩 If they're keeping their identity under wraps, using aliases, and avoiding live video interactions, it's a red flag. Building trust requires transparency. Ask yourself why they're hiding.

Stay vigilant out there! The trading world has its share of shady characters eager to exploit your emotions and dreams.

Please comment below with any experiences you've had, which could add to this cautionary tale. I'd love to what you've experienced.

Firstly you need to clear that Trading is not any kind of game. Trading is the world's most hardest business.

RazibOfficial posted:
Firstly you need to clear that Trading is not any kind of game. Trading is the world's most hardest business.

Whilst I agree, surely that is a different post completely? In this one, we're revealing the unscrupulous activity of scammers and their typical modus operandi.

Beware of those who only show backtests. One can always demonstrate via forward testing even in demo.

sovy posted:
Beware of those who only show backtests. One can always demonstrate via forward testing even in demo.

Yes! Great point Sovy! Thank you.

I have a trader offering his algo and managed services, I asked for his fx book but he said that everytime you pass a challenge or withdraw you get a new account is this true? so he only has it for around three weeks until he passes the challenge, does this sound right? are there any other questions I need to ask? he's posted a lot of stuff on IG and provided videos of his live accounts for other partners where it looks like he's made a decent amount.

Yep that is true. No reason why he has not connected them while trading though.

Thanks Steve, is there anything else I should be asking?

If it's prop firms then he will have pass and payment certificates in his name for every account he has passed and got payment for in his name. If he does not have a decent history of these without gaps I would be suspicious of his ability to consistently generate profits.

Thanks Steve much appreciated.

Spotting red flags in trading is crucial. I rely on indicators like inconsistent returns, lack of transparency, and promises of high profits with minimal risk. Identifying these flags helps me steer clear of potential scams and protect my investments.It's just my opinion, maybe it will be useful to someone...