Beware of Trading Gurus: Tips to Avoid Scams & Learn From the Bests

Trading concepts

Trading gurus

The Internet is flooded with individuals claiming to be knowledgeable about ways to becoming a “successful trader” and making a “secondary income”.  Almost everywhere you turn to, there is an Ad that would in a way assure you that it is achievable to make a lot of money trading. Even when you have absolutely no prior knowledge about it. Most of these claims are false! In the course of this article you’ll know everything about trading gurus. We will expose:

  • who those people are
  • how they work
  • and why their claims are blatant lies

Who are the Trading Guru? Let’s split them in 3 categories!

A Trading Guru is an individual who claims to be knowledgeable about ways to make a lot of money trading. He is offering to sell his strategies to people in the mode of educational content.

Below are the categories of these so called ‘gurus’ you will come across every now and then:

Hindsight guru

These form of trading gurus usually post often. Although, all of the setups posted are aimed towards one fact, and that is to mislead their followers. They go about to post a stale trade and they show that it is a winner enticing you to follow their trading strategy. Anyone can replicate that by trading on hindsight. There’s no potential or value in this other than to mislead people.

Ninja guru

These forms of trading gurus usually post a good amount of trading setups. However, of all the setups they post, only a few will actually be winning trades. Others would be losers. When the winning trades get accomplished, they will make it known by all means, posting their winners all over the internet. Feeding the audience with the notion that they are very precise and incur no losses. What about their losing trades? Well they simply hide it and keep mute about it.

Honest Ninja

These group of trading gurus are a bit wiser as opposed to the earlier ones. They exhibit a similar trait to the ninja guru other than the fact that they do post their losses. Yeah, finally something truthful! But hold on a second. They’re not foolish either. Let’s take for instance, they uploaded 9 trades and only have 3 winners and 6 losers. They will go around showcasing their 3 winning trades but when it gets to the turn of the losing ones, they most likely will upload only 1 out of the 6. Hence, projecting the assumption that they are being honest and truthful. But they forgot, that we’re not foolish either.

How to spot a Fake Trading Guru?

In this recent era, we can come across them anywhere, majorly on the main social network platforms like: YouTube, Instagram and Facebook or their own custom websites.

What do Fake Trading Gurus usually offer?

Trading Gurus specialize in educational content. Basically the main forms are: Online trading courses, trading signal services and live seminars.

The cogent point in all their offerings is that they promise to teach you ways to make money, become rich, quit your present job, be successful in life, and live the life you dream about. Remember, fake trading gurus are specialist in making empty promises.

Why Trading Gurus make no sense at all

The market by default has a heartless nature, in order to realize money you literally have to take it from another person, i.e, there will always be a sucker in the game.

The logical method to make money trading is by adopting analysis through logic, searching for something that hopefully not so many people are aware of and implementing it. If everyone knows a certain strategy and we all implements it at the same time that would make it useless.

How do market prices get determined?

The financial markets moves as a result of the actions of buyers and sellers. At any given instance for a certain share of a company that is to be traded, there exist traders buying and selling at market price and as well as those with limit orders (orders at a price different from the market price, could be more or lesser to the buy or sell) that gives liquidity and various price availability.

Now, ruminate about the idea of a trading guru disclosing to you he has a strategy that he shares with thousands of followers and it works. How is the strategy supposed to work if we all at once enter the market and perform the same action?

We would all eventually push the prices up or down and none of us would be winning, since someone needs to be on the losing side.

Hedge funds generate money when they are aware of something which other hedge funds are clueless about. Basically, this Guru Scammers leverage on their followers to try and move the markets. When they’re trading a really small liquid stock, and these guru at the end makes use of the old pump and dump strategy.

They rake stock previously during some time, then they con their followers into buying using their signals, chat rooms, live trading. And just when prices shoot up, they releases the shares on their followers at a desired price. The Guru’s followers unknowingly are supplying liquidity for him to execute his ploys.

Who are the favorite Victims of Fake Trading Gurus?

Incredulously, the popular groups of individuals that get conned are not rich, but rather poor people. Guru’s target are the desperate people that are in dare need of a way out of their financial crisis. The Gurus are after the savings of this humble individuals, and come to think of it, those with stop a good financial status don’t go about googling for secondary income courses.

Their main characteristics are the following:

  • Expensive lifestyle with exotic cars
  • Stacks of cash
  • Videos
  • Articles and posts assuring to know secret ways that can make you rich
  • Complex storylines that projects them as the underdogs that made themselves millionaires through trading rising from absolutely nothing
  • Live trading videos which won’t reveal to you any account balances or verified statements that actually shows they’re profitable

The main point in all these Guru’s stories is that somehow they got fed up of all their trading success and now they are offering to share their success secrets with the world to make others rich.


Anytime you hear or see these words:

Secondary income, live the life of your dreams, be financially independent, and make money from your laptop while traveling, then please, run!

Trading is full of risk, and money can be lost in seconds specifically if you are not versed on how to manage risk. Trading is not an easy means to get money, be patient, the market will one day turn Bullish.

Keep in mind that we spend an average of about three years studying in college/university to acquire the technical know-how and training necessary to carry out a job as expected and earn a starting salary of about $2,000-$3,000. Wouldn’t it be logical to think that you need to also spend a lot more time learning and practicing ways to trade successfully?

Whoever claims to be able to teach you how to trade and become rich is a liar by default. If that were true, these individuals would be wealthy, living on a yacht and having fun as they trade. Come to think of it, why would anyone prefer to deal with online students in exchange for a few hundreds when they’re able to make millions trading supposedly?

Remember, common sense, logic and not failing to trust your intuition can save you from these funny fake trading guru fiasco.

Russell Crane

Russell Crane

Russell is an Algorithmic & Technical Analyst Trader @ PatternsWizard.
His passion is to share his knowledge about TA, patterns & more. Why hope for your trading to work when you can precisely know the performance stat of every pattern?

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