A lot people seem to be falling for telegram channels which claim they will make you a ton of money using option trading.
Think about it this way : it takes a group of the world's best mathematicians (with decades of experience in statistics) to generate an average return of 66% a year in trading, while using the most sophisticated models, computers and a large volume of data.
Now compare that to an options trader with a telegram channel who claims they will make you 10k in each trading session with an investment of only 35k. That's like 7200% a year. Laughable at best!
I wanted to see how these channels fool uninformed people and take their money so I joined a channel , as a free members, called “Options Signals" / Option Kida / option king
This channel would charge 3000 per month or 9999 per year for their “services” and they had close to 80k free members and 4k paid members. That's quite a lot of money. Imagine if someone knew how to make 7000%+ returns in a year in a zero sum game, why would they share it with you and not just use it for themselves ?
New investors become really happy when their first trade generates good returns in day. But after trading for like 6 months, they realise they are netting zero in trades. And they telegram guy is making a ton of money.
I noticed some deceptive tactics used by this channel which I want to share so people don't fall into this and lose their hard earned money.
First, they would only share profitable trades with free members. The loss making trades are hidden from them to lure them into paying for premium membership.
Second, they would edit their messages after the price movement and then claim that they predicted it all along.
Third, they would never trade with their own money. Because obviously they don't want to lose their money. But they're fine with their members losing it as long as they get paid. Pure scam.
I obviously did not pay them because I could see their tactics. But I felt bad for those who fall for it and end up paying. Unlike playstore we don't have a way to review telegram groups which scam people so I figured I post it here.
Don't fall for scammers like “Option kida" and “options king". You may make some profitable trades but over time you are bound to lose money. The only one making money will be scammers of the telegram channel.