5 DON’T for Smart New Investors
1. Don’t trust someone who only shares a paper portfolio instead of a real portfolio.
- Paper portfolios are simulations that lack real capital, meaning they don't reflect the psychological pressures and market dynamics of actual trading. This can be misleading as it may only pretend to demonstrate an investor's skill and decision-making in real market scenarios, not their true ability to handle real investments.
2. Don’t trust investors or traders who manage less capital than you do.
- Investors or traders managing smaller amounts may not have proven their ability to generate wealth on a larger scale. This lack of wealth accumulation in their own portfolios suggests they do not have the necessary experience or success to guide others in becoming wealthy.
3. Don’t trust traders who rely heavily on technical analysis but don’t show their trading results or ROI.
- Technical analysis without demonstrated results or documented ROI is ineffective and unreliable. Traders who do not provide evidence of successful outcomes might simply be offering unproven theories rather than actionable, profitable strategies.
4. Don’t join trading groups if someone pressures you to.
- Pressure to join trading groups can often signal a scam, where the true intent is to profit from membership fees or mislead members.
- Paper portfolios are simulations that lack real capital, meaning they don't reflect the psychological pressures and market dynamics of actual trading. This can be misleading as it may only pretend to demonstrate an investor's skill and decision-making in real market scenarios, not their true ability to handle real investments.
2. Don’t trust investors or traders who manage less capital than you do.
- Investors or traders managing smaller amounts may not have proven their ability to generate wealth on a larger scale. This lack of wealth accumulation in their own portfolios suggests they do not have the necessary experience or success to guide others in becoming wealthy.
3. Don’t trust traders who rely heavily on technical analysis but don’t show their trading results or ROI.
- Technical analysis without demonstrated results or documented ROI is ineffective and unreliable. Traders who do not provide evidence of successful outcomes might simply be offering unproven theories rather than actionable, profitable strategies.
4. Don’t join trading groups if someone pressures you to.
- Pressure to join trading groups can often signal a scam, where the true intent is to profit from membership fees or mislead members.
5. Don’t pay for trading tips or non-licensed subscriptions.
- Trading based on paid tips is akin to gambling, it relies on chance rather than strategic decision-making. If you're investing to build wealth methodically, you should depend on thorough research and strategic planning, not on speculative tips that may not have a solid foundation or track record of success.
- Trading based on paid tips is akin to gambling, it relies on chance rather than strategic decision-making. If you're investing to build wealth methodically, you should depend on thorough research and strategic planning, not on speculative tips that may not have a solid foundation or track record of success.
Those GURUs or Protraders who fit these 5 warning points are likely making money from you (through subscriptions, YouTube content, or group chats) because they are unable to generate profits from investments.
True investing wisdom values real results and independent thinking over the temptation of easy profits. Learning is an essential part of the investment journey that you cannot skip, and it takes a lifetime.
All the best and happy weekend ![]()
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2024H1 Moomoo Alchemist
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cong li : from time to time, it's proven that in the long run you can't escape 2 standard deviation of expected return
EZ_money : good advice
Cap Cap : Do not trust anyone who simply comment here.
Think yourself before invest the next.