If you guys can't figure out that these guys putting out videos by the score, trying to take your money, ain't making jack SHIAT trading then there is literally no hope for you. They are LITERALLY trying to take your money because they CAN'T make any real money trading. It is quite simple. You might hate that with a passion, but that is the cold, hard, obvious truth...
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I have never bought anything from these stock gurus. And never will. Just trying to make sense of these claims. Trying to be open-minded and fair here...
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Of course they are trying to take your money, but so does every business in the world. Apple doesn't just stop at making phones and not taking any more of your money. And every company that we trade on the stock market does the same. It's their job to generate money from various income streams.
Anyway, I've just watched several more of Steven Dux videos and really like this guy. He has a very good, solid approach to shorting penny stocks, with lots of good points and advice. Everything checks out, maybe except his profits look a bit extreme, but still possible. My backtests show 500%+/year profits on such shorting strategies with moderate risk (not low risk). It would be starting with max $100K due to limited capacity, and require trading somewhat large size like 10%/trade. But an actual day trader can analyze more variables, news, level 2, make decision in seconds, scale-in, scale-out, adjust stops, etc. - that's a lot of things that can give him advantage.
He seems to be able to take higher risk by setting up a $25K account and then making as much money as he can with a risk of a blow up, but then he can setup a new $25K account and start over. This isn't a bad approach and also used by some Forex traders. Though he may be using this for marketing so he can blow up several accounts until one of them makes $1M.
The conflicting broker statements from Dux do worry me, so I am skeptical, but it's not like absolutely no one ever made a $million dollars trading penny stocks. And if any one person did, then a few other might to, especially when well prepared. There is also a pro trader at SMB Capital that makes $2M per year, if I understood correctly from their videos. They offer a lot of free videos and resources, and validate the concept of trading. No one needs to believe or disbelieve any specific trader, just take whatever info may be available from each source. Definitely do not pay for any of that stuff.
I did some investigating.
L.S. Saunders. A quick google search reveals literally nothing except a website address.
http://lsaunderscpa.com/about.html
The website seemed a little sketchy, but the phone numbers matched. There was a picture of a woman who is a real CPA named Lauren Saunders, but she's licensed and works in CT and FL. I searched a bit and found her personal FB page and she seems like a real person, but still couldn't find any evidence she was a CPA in Bahamas. So I decided to search licensed CPAs in Bahamas and got this list.
http://www.bica.bs/download/2019-licensees.pdf
To my surprise there was an L. Sydney Saunders with an accounting license there and the phone number to LS Saunders & co matched, but STILL I did not believe Dux to be legit or this accounting firm. So I searched for this L. Syndey Saunders and I found, not a woman, but a mans FB page that lists him as working at Saunders & Associates. Here's the page.
https://www.facebook.com/profile.ph...885715:100006753225944:1577600499&sk=timeline
BUT WAIT! There's more. If you're thinking there might be some small explanation for this, I've got the final nail in the coffin. I searched this guys name some more and guess what...He has ANOTHER job....want to know where? He works at TRADE ZERO as the chief compliance officer as I found here.
https://www.tradingschools.org/reviews/trade-zero/
I think it's safe to say Dux, Saunders and Trade Zero are working together in a big elaborate quid pro quo network. My thinking now is Dux gets traders to buy his course, saunders legitimizes his trades so he can sell more courses and in turn Dux promotes Trade Zero to which 1000s of traders will open accounts based on his recommendation and I'm guessing one day Tradezero will just close shop and run off with everyones money. Everyone wins except the traders.
Hmm, this really doesn't look good. So you're saying that their auditor is just one woman shop? That would be ridiculous.
Though both himself and TradeZero take on huge legal liability when lying. Many people continually look for reasons to sue someone, while lawyers continually look for lawsuits to initiate. For example suing Walmart is a business on its own, with Walmart being sued 20 times each day. So if you claim that this guy isn't legit then prove it by suing him, or helping any of his subscribers sue him, his broker(s), his accountants, and everyone involved in his scam. This would be an easy class action lawsuit if his results are untrue. Someone can make more money from the lawsuit than from trading if they really have a case. Since all his subscribers are trying to make money then they'd have no problem joining a class action lawsuit. While a lack of such lawsuit might be more puzzling than Dux making money trading.
So why no lawsuit?
(I'm now seriously skeptical both ways)
I don't think the woman is involved at all. It's some black guy with a similar name in the bahamas. Tradezero seems to be run like a regular trading firm with a CEO and regular staff and stuff, but this stuff is kind of hard to wade though. A quick search reveals that the founders of tradezero seem to be legit, having had a trading firm before called nobletrading that was sold in 2010 to lightspeed but that's at first glance and I haven't looked into it deep enough to see if they're really involved in founding tradezero or if their identities were stolen to legitimize it. One of the cofounders of tradezero doesn't mention he's a cofounder on his linkedin. The other guy does, but I can't find anything about the CEO.
Like if you're not looking really deep, it all seems legit. Dux would be the chink in the armor (no pun intended) that brings it all down. Even if Tradezero is legit though, the CCO had to know of the conflict of interest in writing Dux that statement and Dux had to know that he wasn't getting an independent 3rd party audit.
That’s great research. I’ve been looking through such stuff in the past when needing to research a business. So assuming that you’ve looked through a few of those traders, is there anyone that you’d consider legit in penny stocks or day trading biz?
I kinda like Davis Martin but he also ended up associating with the marketing machine of Raging Bull and the likes. I just think that he might be very skilled.
It seems that every good trader ends up a marketer and then it’s just the questIon of the level of sleazeness they achieve.
Nick Fabrio in Australia seems very decent and just trading along without selling anything. And guys at prop firms like SMB Capital and Seven Points Capital. Their main jobs are to trade and that’s all they do, while sharing quite useful info.
The hard truth is that most (all?) youtube traders are trying to sell you something and are probably guilty of cherry picking their results. No big surprise there.
That does not mean that you can't get some good information for free from some of these guys if you select wisely.
My latest find is Jared Wesley. Even he has detractors and it's easy to find web sites claiming he's a fraud. (Seems to be a cottage industry of ad supported review sites).
I like his emphasis on having a trading plan, keeping a journal of trades for analysis and always using stops and price targets. He also shouts a lot and calls traders idiots (most are, at least in the beginning). Here is a video on the importance of hard stops.
That does not mean that you can't get some good information for free from some of these guys if you select wisely.
My latest find is Jared Wesley. Even he has detractors and it's easy to find web sites claiming he's a fraud. (Seems to be a cottage industry of ad supported review sites).
I like his emphasis on having a trading plan, keeping a journal of trades for analysis and always using stops and price targets. He also shouts a lot and calls traders idiots (most are, at least in the beginning). Here is a video on the importance of hard stops.
This is a true statement. You can get some good information. Only thing is, you can also get some bad information too.
You also have to remember that even a good strategy loses money sometimes. A card counter doesn't win every trip to the casino. Very important to remember that.
He looks ok and may be legit and profitable, but I just started watching this video and already disagree on hard stops, or any stops. This is a controversial topic and you can easily get your throat sliced if you attend a traders meetup and say “never use stops”
This may depend on the strategy and type of instruments being traded, but let me just say that Warren Buffett and I never use stops (with some exceptions for maybe 10% of strategies in my case). I don’t even use stops when shorting penny stocks that may be losing 200%, as they are minor fluctuations if you don’t bet big, while I usually already short at a high price but simply can’t guess the top. A strategy without drawdowns won’t make much money anyway. When any stock/chart fluctuates by 1%, it includes thousands of micro charts where traders make and lose 200% at a time. I just look at larger charts where I don’t see or care for those blips.
And I’ll just leave it at that, though here are a few better researched articles on using stops:
https://blog.quantinsti.com/hidden-truths-stop-loss-trading/
https://quantitrader.com/algorithms/4-dirty-little-secrets-stop-losses/
Some algo developers also seem shocked when discovering that stops don’t work.
And I probably just offended some traders and algo developers who always use stops.
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