The tell tale signs of a scam
There are a ton of trading services out there, many of which seem to be 100% legitimate. Unfortunately, some of those services are in fact a scam.
Greedy unscrupulous alert services will often (more often than you think) get paid to endorse picks they provide. Therefore, the charlatans running these schemes don't have any real incentive to be accurate. They make money by "pushing" stocks.
Not by diligently picking stocks that make their subscribers money.
Don't believe me?
Then... check this out...
From The Bismarck Tribune:
"ALEXANDRIA, Va. - A former enforcement attorney for the Securities and Exchange Commission was sentenced Friday to eight years in prison for his role in a series of multimillion dollar pump-and-dump stock fraud schemes.
Dallas-based attorney Phillip Offill Jr., 51, was convicted by a jury earlier this year on 10 counts of wire fraud and conspiracy. He testified that he was acting within the law, but the jury rejected his defense, and so too did U.S. District Judge Liam O'Grady.
Offill, who worked at the SEC for 15 years before taking a job at the Godwin Gruber law firm in Dallas, aided schemes that by conservative estimates cheated more than 1,500 investors out of at least $2.4 million. The fraudsters would pump up the value of dubious penny stocks and then sell the shares at inflated prices to unwitting buyers..."
The sad thing is these kinds of news stories are all too prevalent.
A simple search on the term "pump-and-dump stocks" in Google brings up thousands of web pages. Many with accounts of this kind of scheme perpetrated on the public.
Day trading can be a highly risky business. This is a warning that even the Securities and Exchange Commission (SEC) displays on their website.
The SEC states: "Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring." They further warn that "Day traders typically suffer severe financial losses in their first few months of trading, and many never graduate to profit-making status."
That's pretty sobering, isn't it? Makes you want to rethink getting into day trading at all -- seeing that the odds are stacked against you -- doesn't it?
Besides being risky, day trading has always been regarded as an extremely stressful way to make a living. If you've ever done day trading, I'm sure you know that...
- You need to watch the market continuously during the day at your computer and make trading decisions under the pressure of time.
- Day trading demands great concentration to watch dozens of ticker quotes and price fluctuations to spot market trends
- Day trading comes with brutal psychological rigors because it's nerve-racking to seek profit from swings in daily market movements while trying vigilantly to protect your capital against loss -- and you're never really sure whether you'll gain profits or lose your shirt.
One of the main tell tale signs of a scam is the assurance of profit. Investing in the stock market can be a gamble if you don't know exactly what you're doing. Also, no one can completely predict whether or not they'll make exorbitant gains on any particular trade.
First Hour Trading doesn't make any promises or prediction of income of any kind. First Hour Trading has seen investment returns of 1% of trading capital per day one average since 2004.
With First Hour Trading you will be given specific reccomendations by it's creator, Manny Backus. Whether or not you make any specific trade is completely up to you. How much you chose to invest is 100% up to you as well.
So who is Manny Backus and how did he come up with the First Hour Trading system?