Learn to trade shares. Beware Of False Prophets

This week ASIC has issued proceedings against another share market educator, Click here and again it is aimed at the way they promote themselves. If you follow the link above and type the name of share market educators into the search field, you will be surprised at how many companies ASIC have been watching over the years.

Whilst I will not comment on the content of the courses or the companies themselves, what I will say is that the emotive marketing techniques these companies use is in my opinion often misleading. The first warning sign to me is the free seminar that is promoted as teaching you how to trade the share market or how to learn to trade Foreign Exchange, CFDs, Options or Futures.

There is always a sales pitch at the end, afterall there is no free lunch. The sales pitch is always promoted as a great deal with lots of discounts that are available only on the night. The reason why they do this is very simple, it is because they know that once you leave the room and do your research you are less likely to buy from them. In any event, you will be offered the same deal next week, next month and next year, so there is no rush to buy on the spot no matter how good the deal seems. It is far better to do your research first, which includes visiting the ASIC website, the ACCC and Google.

The second warning sign is the 100% money back guarantee. Hint: read the fine print and you will find out that obtaining a refund is near on impossible, if not impossible.

The third sign is the offer to pay half now and pay the other half when you have made money. They do not expect you to make money and so they get out of you what they want upfront and never expect you will pay them any more. Unfortunately, the unsuspecting buyer thinks they are getting a good deal.

The fourth sign includes statements like:

“You don’t need much money”

“It’s Easy”

“Takes minutes a day”

“No knowledge necessary”

A while ago I recorded some podcasts on these issues, so if you would like to have a listen simply Click here for”Share Market Tips and Traps Episode 5: Part 1 and Click here for part 2.

Dale Gillham

Chief Analyst

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.

For more information please visit www.wealthwithin.com.au