Did Robert Hoffman really lose 312K in a single TF trade? Yikes!

[austinp]

Quote from jedwards:

I'm doubtful. I really don' t think the "powers that be" really care about regulation and making the markets safer for retail. The SEC isn't around to protect retail, they're there to give the semblance that the markets are fair, which it is not. There are so many easier, bigger fish to fry, like HFT manipulation, etc, and they don't do that. The "follow my trade" markets are relatively small compared to the other problems. I sincerely doubt that regulators will do anything.

That being said, what about prop trading firms, where they call out trades for people in the middle of a massive trading room? What would be the difference between that and a live trading room? It seems like it would be a free speech issue, as long as they weren't telling people specifically to trade their trades. This is something Hoffman is good at skirting, so it seems like they might be able to avoid any problems in that regard.

Well, the bottom line is a lot of gray area and uncertainty will exist if regulators take further action. They might do that solely as a token gesture to appease myriad complaints from the follow-us and/or trade-our-money schemes.

I'm sure with enough money and legal advice, loopholes can be found or created to circumvent legislation. But for sure it will impact many or most operations and ther current mode.

 

[Illum]

I was a complete noob, still only 3 yrs in, when he started his youtube and then his selling of his services, a few years ago. Even back then I knew he was full of chit. I don't know how people can fall for it, when a noob of like 3 months experience knows it. I'd be willing to bet, all that money he lost came from "clients" He should have known better and just kept their money. Why they give this guy money when you can get Mark Fishers book for 30 bucks or whatever, I have no idea. I'm not saying any one book or method will help a beginner. But why not buy, read, and listen to real pro. Ridiculous. I guess to beginners a scam just sounds better than a real trader trying to tell you how it works?

 

[joneog]

Quote from austinp:



When you have a tv informercial that claims how easy it is to trade Forex following room calls and qualifying yourself to trade the firm's capital in time, that builds some sky-high expectations in a lot of desperate people.

By that standard we'd have to stop all forms of marketing, for pretty much everything. All ads promote some type of unrealistic expectation; there's a fine line between marketing and fraud.

I just don't think you can protect people from themselves. Sure, if someone is doing something fraudulent then you can go after them, but if people out there think they're going to get rich buying a DVD on some real-estate scheme or buying some trading course, at the end of the day it's on them.

I tend to think the best way to deal with people like Hoffman is what we're doing in threads like these. If you type "Robert Hoffman Trading" into google this thread comes up on the first page. If someone is not willing to do some basic research before signing up they deserve what they get.

The other problem with regulation is the false sense of security it provides. The new trader may now think "hey, if the regulators said this guys OK, why should I dig any deeper, no need to think since someboyd else has done it for me." I'm not sure the added layers of hassle and liability will stop this. It may thin the herd a bit, but I don't think it will fix the problem.

 

[Jackie Treehorn]

The guys is Making 150K-250k a month to teach you how to make 60 bucks on a trade...


Doesn't take a genius to figure out the angle.....

Protect that win streak at all costs, even if he dropped 350k., it was worth it to him...


Its the people who continue to pay for his service after they see its just martingaling scheme disguised by novice advice that are the real assholes...

 

[FreakofNature]

Even more evidence that those who cannot trade, teach and that those that can, got no reason to.

The few times I add to a loser I feel like I did not know what I was doing when I initially entered or should have taken a loss and re-enter. Bottom-line I think averaging down is irrefutable evidence that the trader has no idea on how to enter in a critical turning point area.

FoN

 

[Pekelo]

Quote from austinp:


NFA could say that all new trials and subscribers must sign CTA disclosure documents and return to be held on file. They could audit email testimonials, could hold operators accountable for complaints from clients that didn't get filled where room signal was, instructions weren't clear enough or timely enough, etc.

OK, that would filter out outright frauds, but again, Hoffman would have passed it with flying color and still lose money for his subscribers.

 

[222bc]

Coming late into this...

Martingale involves repeatedly doubling up on a losing position once it is closed out until one hits a winner. The trader for example would be short 2 units after being stopped out of the original 1 lot long position, and if stopped out at a loss again then they would be in 4 lot long position.

From what I gather RH does not use Martingale he is simply adding to losing trades. I do not know if he added layers of increasing size or equal size.... It really does not matter because it is scale trading, the exact opposite of his supposedly precision trading.

bc

 

[marketsurfer]

Quote from Pekelo:

OK, that would filter out outright frauds, but again, Hoffman would have passed it with flying color and still lose money for his subscribers.

Is he a CTA? Any evidence this isn't another Fran$ Sh@ar simulator trader? Traders international -- a much bigger operation than trading markets or who ever--- swore up and down that it was real capital until busted.

 

[failed_trad3r]

Quote from Illum:

I was a complete noob, still only 3 yrs in, when he started his youtube and then his selling of his services, a few years ago. Even back then I knew he was full of chit. I don't know how people can fall for it, when a noob of like 3 months experience knows it. I'd be willing to bet, all that money he lost came from "clients" He should have known better and just kept their money. Why they give this guy money when you can get Mark Fishers book for 30 bucks or whatever, I have no idea. I'm not saying any one book or method will help a beginner. But why not buy, read, and listen to real pro. Ridiculous. I guess to beginners a scam just sounds better than a real trader trying to tell you how it works?

Unless you paid for the room, you couldn't knew.

 

[Illum]

Quote from failed_trad3r:

Unless you paid for the room, you couldn't knew.

Nah, it was obvious, no need to pay for that garbage. He ran his free youtube for awhile, then even came on here. Posing as a happy follower saying how great he was. This was months before he started asking for money. I just remember it so well, because I was new and was looking at this garbage from people. I think I stumbled on his crap, by just searching for futures traders on youtube. Was trying to find floor stuff, I used to be fascinated by what they did. I tried to look back at my earliest posts to find one thread he came on as the "happy customer" peddling his b.s. I remember laughing at all his red lines, that ended up being a child's mess of a chart. Didn't see it, I did see some idiot posts by myself, all the way back to my sorry beginnings, wow what an idiot I was back then. I then saw some posts from yesterday. Just as bad. But yes it is possible for morons like me to see these losers. And lol no, I'd never give him money.