Yesterday on twitter i saw a story where a trader was given $10k to trade and blew the whole thing in one night, a whole 10million naira in just a night, i mean,if you want to gamble why not just open a betting account and do that instead of staking the whole thing in one trade. Apart from the unprofessional trader who did that, there's the investor who trusted such person with such amount and i truly wonder who is more foolish between both of them.

Really don't know what he saw in the trader that mad him invest such amount,possibly the flashy pictures and showing of profits every single time on his page,really can't put my hand on what will make such thing happen.

Although that won't be the last time such thing will happen seeing there are a lot of inexperienced traders and investors who really don't know what they're getting into, I'm here to show people how to seperate real traders from fake ones

1. They only show lifestyle

Most fake traders know people are drawn by what they see and hear so they make sure they put such lifestyle on social media so people think they are actually making so much profit to be able to afford such lifestyle. A real trader hardly has time for such,while a real trader actually makes profit for the investor,he doesn't go lavish the money and hardly has the time to even showoff. Most of his time is spent in backtesting, learning,fine tuning his strategy and looking for better ways to trade.

2. No track record

Most fake traders don't actually have any track record and even if they do have they get them off people's pages on social media. They have no backtest records, no good trading system,nothing,just vibes and gambling. A good trader always have track record to show his capacity and that he is able to actually trade an investors fund very well even when the market is not very favourable.


3. They promise monthly returns

The forex/crypto market is never 100% on the good side so there is never a guarantee that there will be monthly returns. While monthly returns is actually possible its not feasible and never consistent. There will always be months where your strategy works when you can actually make very good returns monthly but those months don't last forever,there are months where you only breakeven, what happens to the investor funds then?. A real trader doesn't guarantee monthly returns, he makes sure the investor gets profits in the good months and gets through the tough months with good risk management

4. They post only profits

There's no greater red flag than this, if they tell you the market only churns out profit ,do not believe. I mean if that's possible most traders will be richer than elon musk right?...... right?..

The market has times where losses occur and a real trader tell investors the truth about that even though most people don't want to hear the truth

5. Lack of risk management

One of the qualities of a good trader is the ability to be able to manage risk. Managing risk doesnt just involve not blowing a trade account, it also involves not trading more than a certain percentage per trade and knowing what amount of risk to take and profit for every trade no matter how promising such trade looks.

6. No trade plan or strategy
Most so called traders don't have a trading plan or strategy and they still collect money from unsuspecting investors. This never ends well cause without a trading plan or strategy you really don't know when to enter or exit a trade,how much to risk per trade and which trade to take or not to take.

I really hope people heed to this and not make the mistake of giving scammers in disguise of traders money.