Skip to main content

Rich Courses, Poor Lessons




"Too good to be true" is such a cliche - but it's a good one and it's true. Investing is a breeding ground for charlatans. Which makes sense. Wherever there's money, they're there. The scam I see a lot of lately involves training from stock market "geniuses". A classic. Fake experts have always existed, the internet has just made them louder. 

The con is simple. A promise of outsize returns through some kind of proprietary system or insights. A guarantee in returns is a guaranteed red flag. Even the best acknowledge investing is hard and returns are finicky. Anyone who is this confident are at best misinformed, at worst a liar.

They'll show charts of amazing performance. Usually beating the market by hundreds of points. Shouting you can learn to do it too!.....for just a few hundred bucks. What a value, right? 

This is usually nothing more than cherrypicked (or made up) data. Think about it. If they had the key to the markets, why would they give it away? Sharing eliminates all of its value. Why not profit off the insights themselves? 

They don't make money from investing because they can't. They make money from people who think they can. Those who can't do, teach. 

It's alarming how many scammers are out there. From the young to the old, from Tik Tok to Yahoo Finance. They are everywhere. Be careful of their ads. They try to make it look like real research when it's just them selling their junk. 

If you're reading finance blogs, you're likely literate enough to ignore these. They're after the financially vulnerable. Spread the word if you know anyone who might get caught up. 


Comments

Popular posts from this blog

The Art of Giving Feedback

Constructive feedback is an awkward affair. You don't want hurt feelings, but recognize the importance of honesty. You've tried the classic "hoping things will get better on its own" and unfortunately it hasn't played out. When giving feedback, here are a few things that I try to keep it mind. Start with empathy. Step into their shoes and understand their story. If you don't know, ask. Be genuinely curious. Feedback is a dynamic affair. Shared communication with a shared goal towards progress. Take the emotion out of it. Focus on the situation, not the person. Focusing on the person adds unnecessary weight to an already emotionally-bloated event.  Be specific. Give clear examples. Vague feedback equals dismissed feedback.  Doing above won't de-awkward things fully, but it will dampen it and increase the chance of better outcomes. 

ELI5: The Stock Market

Today we get back to basics and answer some of the most common questions about the stock market.

Step One is Knowing

In school, we listen to our teachers. At home, our parents. Throughout our childhood, following instructions is praised and rewarded. When we're young, there's value in this. We don't understand how the world works quite yet, so guidance can be lifesaving.  The bias to just accept obviously has drawbacks. Insert old jumping off a bridge adage .  This conditioning is especially strong for kids from lower income households. Their parents are more likely in working class jobs involving strict order-taking. Parents of middle-class households tend to be knowledge workers where influence is essential.  Studies have shown kids from middle-income households are more willing to negotiable with their teachers. They learn from their parents that things are not set in stone. This leads to better grades and learning outcomes when compared to their lower income counterparts who don't negotiable.  In business, if we simply accept things as they are, we would never innovate. In work, w