3 things you must check to asses if a trader training company is real or a scam?
You have been looking into different passive cash flow streams and you stumble upon trading. You make a decisive choice to learn to trade and start looking into different
trading courses in UK to help you become a professional profitable trader.
You find out that there are so many of them and all claim that they can make you
profitable in no time.
The common things that companies claim are:
1. They have this magical strategy that can turn your life around and give you massive
cashflow. They talk about that one or two trades that has made over £10,000 and
how it has changed their lives. They say that they have compiled all of this into an
online program and it is the best financial trading course ever.
2. They have a live trading room that makes massive profits. They show you
the trades they have taken in history and the £1000s made. They say that they will give
you signals and it will be easy to make money.
3. They show you their flashy cars and houses and make you perceive that they have
bought it through trading. You see a few of their client testimonials where they talk
about how much they made over a few trades.
So how do you find out if all of these claims are true. Here is a 3 step checklist we have come up with after going through so many courses with false promises and investing six digit figures on trading and training. You can use this checklist to assess the credibility of a trader training company or an online financial trading course.
1. Research backed trading strategy
Check to see if the strategies that the company is trading have been researched. Do their strategies have a sustainable concept and objective, backed by valid stats? If they do, ask them for the strategy performance report and the respective equity curves.
2. LIVE Strategy performance
Though the company may provide you with an impressive strategy performance over the past years, the next natural question to ask is, will those results sustain today and beyond? As the famous disclaimer goes, “Past performance is not indicative of future performance”.
To cover this, you can check if they have a trading room where they call out the trades LIVE and then log it in their trade journal. The trades must tally with their call outs and must be in their log history. This shows cumulative trading performance and not just one or two trades making money. This gives strength to the viability and sustainability of the trading strategy in REAL TIME and not just historically.
3. Sharing their performance publicly
Does the company share their results publicly so that you can review their performance at any time? A true transparent company will log their trades onto a trade journal with entry, stop loss and exit. They will have their performance tracked in real time with equity curves to help them review and optimize their strategies when necessary.
If their clients claim that they are making money, check to see if they have their own trade journal backed with account statements. If the company can produce such clients, it shows their calibre of quality training as very few clients will have the discipline and commitment to do it.
Does the trader training company show their account statements? Though this may be optional for you to check, if they have shown you steps 1-3, they have proven their strategy viability and sustainability. Whether they are taking the trades themselves is irrelative at this point as they may have different financial circumstances.
Through this checklist, you can check to see if the trader training company is real in what they claim. From the research to live performance and sharing it publicly shows transparency, congruency and viability of strategy scalability. If your seeking is pure and sincere, you will find that trader training which will serve you the Truth of Trading.