The irony is that the trading industry mlm's profit off others' emotional triggers, which is the exact thing that causes most traders to fail (along with ignorance.)
My first question was, isn't this really out of date? The ForEx bubble already popped a few years ago and everyone now knows it's a scam. Even the anti-scammers stopped making videos about it. Oh, near the start there is a phrase about -how do you see yourself down the road in 2021- so yeah, this is an old video I guess. Now the scam has switched to equities & options where all you have to do is follow Jason Bond's '3-simple-trading patterns', or you do this thing of shorting options in something we call the 'wheel strategy', and bam! Your instant self-perpetual money-making machine will let you retire soon. It's some secret that all the smart-money just happened to miss... Well didn't you know it?! Reminds me a couple years back I saw another young & dumb millenial talking about shorting calls to get FREE money EVERY time (well almost). In the example on youtube, this self-declared guru was shorting Viacom calls as proof of generating easy income. Funny that, last year we saw Bill Hwang fall into a catastrophic margin call with his LONG Viacom strategy. The interesting thing, is he was able to accumulate BILLIONS in the stock the last prior years by purchasing under-valued calls and stacking the suckers on the other side of the trades. Now you wonder how many other millennials got duped by these tictok & youtube guru's into supplying Bill Hwang all that capital in trades to Archegos. Oh well, easy come, easy go. Take care Mr. Hwang!
I think this documentary talks about 2 diff aspects and both are very much alive so I don't think it is out of date as such , 1) Cult type / Ponzi schemes using something like Trading education / or non ponzi trading education and 2) the Pay for test prop model ...and funny part is BBC gave the FTMO firm a chance to explain but they pulled out! If there is nothing to hide in the business model then why not take BBC head on!
Yeh, content of BBC is not that smart. Let me explain my case. Well, in our prop (we trade us stock market) we have few ways of getting the funded account and work in our team: 1. You provide the cv, description of your strategy, and statement (3 months), and pass the online audition - free. No guarantee you get on board. 2. You pass combine (like topstep, but on NYSE) - demo trading, live quotes, real-like execution, you follow the rules, get the target profit, and as a result receive the funded account and trade through DMA on NYSE. In this case, if the trader follows the rules - we guarantee that he will receive the funded account without audition. But that's not for free - because, we provide demo accounts with live NYSE quotes, a lot of support and risk management checks, 1 mentorship session etc.. So, the main difference and problem with forex props are - even if the trader passes the test competition and get the funded account - he is trading not stocks on NYSE but forex or futures on CFD on some fx platform. And the problem here is - fx platforms are just hosted on stand alone servers. So the owner of the platform infrastructure (for example FTMO) can play with quotes and candles on the chart, with execution - the way he wants to. That's called b book, or "kitchen". So even if after passing the test trader get's the funded account in forex prop and even if the trader loses money - prop loses nothing. The only risk for such prop is - if trader earns. In this case, prop should withdraw. But as soon as fx props can manipulate the price and the execution of the asset on their "software" - profits withdrawals would rarely be a case. So you should try to stick to props who work on the market with DMA access (for example us stock market - NYSE). In this case you will be able to check if your limit orders and market orders go to lvl2 and times and sales on another platforms (to the market).
It's both amazing and sad people will spend $1,000's on scammy subscriptions based on flashy marketing... Or that the narrator was trading with $100 in capital (after spending ~$400 on education LOL). Would be so much better off creating a free brokerage account and doing it like the rest of us (i.e., being largely self taught through various online resources).
I can see your point about FX OTC B book etc , but there are also other tets fee props who claim they give access to CME futures meaning real major exchange not OTC.. even then it is not clear if the trade really goes to the CME! any way
Having been a profitable trader now almost 9 years in, the social media side is just a flash in the pan, compared to the real traders. Selling to the next fool down the road can only get someone so far. The exposure to the scammers like SMC/ smart money, ICT and the myriad of youtubers etc mainly on reddit is a good way to help educate people on how to really trade, and using the free resources like babypips.