It is very tempting to create an extensive list of specific option subscription services that I fully believe are obvious scams, but instead it might be a better idea to draw up a checklist of what you should try to avoid when picking a subscription. It pays to be proactive instead of reactive sometimes, and allows you, the consumer, to make up your own mind without having to factor my personal opinion into your overall decision. Trading scams is such a nasty phrase anyway, especially since specific option subscription services don’t actually go into business to rip their subscribers off. The truth is that they can cost people a lot of money, but it is very legitimate, with just a hint of shade. There are those services out there however that will gladly dance on that thin line between being a legitimate business and an obvious scam. Below I’ve given you at least six ways to figure out on your own whether you’re dealing with a trade service or a trade scam.
Warning Signs that You’re Being Scammed
- It sounds too good to be true.
You know the old adage that if something “sounds too good to be true then it really is”? Take whatever great news and opportunity a trading service gives you with a BIG grain of salt. If they tell you that you can make a mint from just pennies, then you should be able to see right through the lies they’re spinning. Most services will at least tell you that you’ll need to invest something in the service to make it work. Those that are legit might not tell you what you want to hear, but they will at least be honest. A scam will always make it seem like you can get something for virtually nothing. I recommend at least $20k for TheOptionsOracle.com.
- Keep an ear open for phrases like “secret strategies” or “things your broker doesn’t want you to know about”.
The big dogs making all the money don’t really care what type of strategy you employ. Unless you’re somehow taking money out of their pocket they don’t even know you exist. And those “secret strategies” are only secret for a reason. They don’t exist, and they likely never did. Trading is a gamble for most no matter who you are or how much you have. if your desire is to see a huge return on your trade then you’ll be taking on a great deal more risk. The Options Oracle’s “Rowboat Strategy” is a easy to teach system, that does mitigate most risks. Risk can never be totally eliminated. There are no real assurances in this business and furthermore the only secrets you might find are those that are important to the individual and have almost no real bearing on trading.
- Long odds and too many calls.
This is how a service grabs you and makes you do their grunt work until you manage to wise up. It might be possible to be the slickest person in the pits, but in truth you might get one or two home runs and then be forced to slink your way to the bench once again to await your turn to hit that deal-sealing call once again. The unfortunate part is that if you don’t land that miracle call the first time around you aren’t just going back with your tail between your legs, you’re dropping a substantial amount of money while you’re doing it. Being given a list of phone numbers to call in the hopes that you might find THE ONE is a game of long odds. In truth, you have a better chance of being struck by lightning on a clear sunny day than you do of striking it rich in this manner. Options expire worthless 90% of the time. Buying options is, in my opinion, not a good strategy.
- Sites that laud the most successful participants as a means of announcing their success.
It is entirely possible to become successful using these services, but like I’ve already said it isn’t so likely that everyone is capable of doing it on a whim. Those that manage to knock down call after call and produce top earnings is not quite as impressive as it often represents the smallest percentage of users that a service employs. If you want the real picture it would be better if these services showcased those that have been there for several months or years and have earned a modest living. That will show you the real worth of these services. Remember the adage “you learn more from failure than success”, because it applies here without a doubt. Here at TheOptionsOracle.com we list ALL of our trades going back to 2009. Proof is here.
- They don’t reveal enough.
Legitimate services will offer at least some transparency to show you that they are in fact on the up and up. Be aware of the services that will only show you the happy, smiling face and the overwhelmingly positive numbers that their people produce. They aren’t showing you the whole picture, and they likely won’t simply because it would mean admitting that they aren’t quite as successful as they pretend to be. Look for that transparency when selecting a service, it might seem a bit more depressing and even serve to warn you away from some services, but it will be honest.
- Sites that will offer you everything for doing almost nothing are in fact offering just that, nothing.
Everyone wants to get rich, this has been a true statement for many a year and won’t likely go away so long as people continue to want more than they have. But any service that tells you that you can take just a few minutes out of your day and see massive gains is taking you for a ride that won’t end well. Whether the service is legitimate or not you will need to put in the time and make the effort to ensure that you will see even a moderate gain. You get back what you put in, and if you put in the minimum amount of effort you’ll be lucky to see anything in return.
To be honest, option trading services are just like any other service you could provide. Some of them are valuable and some just aren’t. Those services that are valuable tend to stick around thanks to their hard work and effort and the reliable reputation that is gained in return. Those that aren’t worth the effort it takes to type their name will fade away and come back again and again in a type of service reincarnation that just doesn’t seem to end. In order to find the right service stick to the six steps mentioned above and just remember that you don’t get something for nothing.