It’s rough out there and easy to be taken in by a sharp day trading scam. You want to be successful, and you want success to happen quickly, with very little pressure. Fortunately, time is on your side if you are wise, according to Matthew Poll. But not giving yourself enough time to learn the ropes of day trading may get you sucked into a scam. Other reasons, like illegal day trading, can bring you down – and quick. Let’s take them in turn.
Illegal Day Trading
Is the day trader doing things illegally? And if so, how will you know?
“Look at the language that was used to enroll you,” says Poll. “More specifically, look for the word, “guarantee. If any type of day trader makes a promise that they can guarantee some future result, [that’s] an enormous red flag to me. Because one, this is a highly regulated industry, and you just can’t do that. You can’t use words like guarantees in the day trading world where there [are] risks… It’s not possible to have a guarantee in a world filled with non-guarantees.”
Another word to look for is disclaimer. “If you didn’t see federal [or] state disclaimers on stuff that you signed, or if they’re not registered, that’s a big red flag…”
Just handing over your trading and money to someone else, there’s a possibility of it completely disappearing, says Poll. The day trader may have “never even traded in the first place.” And so, perhaps handing off your trade is a “way higher risk” than you want.
Don’t want to take a huge risk?
Day Trade on Your Own
Sure, you can day trade on your own, but don’t just jump into it. “Learn how to day trade, and give yourself time.” Tell yourself, “I’m going to give myself a year to learn how to do this because it’s not a get rich, quick thing,” says Poll.
Day trading takes “some time and patience. And ultimately, [at] the end of the day, it’s about your returns. It’s about your percentage returns not how… many dollars [you have in your] account. Stick with that attitude, and you could be a very successful day trader.”