You know what I hate? I hate seeing my students being ripped off...like they were here I hate seeing their excitement for the possibility of building generational wealth through trading being squashed by so-called \u201cgurus\u201d who scam them out of their money and they lose everything, including faith in themselves that they can actually make it one day. And I hate hearing that people with no real-world trading experience - let alone any real success - are out there conning gullible students into wasting their time and their money...which is why I LOVE showing ALL my trades HERE and posting my tax records\/audits. I'm far from being the best trader in the world, but I have made millions and show EXACTLY how I've done it in a transparent way, which is what I believe ANYONE you're wanting to learn from should do I\u2019m on a mission to change this shadow industry where everyone claims to bank, but refuses to back it up by showing real trades, statements and tax returns. It's also important to understand I can give you all the information in the world like these free penny stock video lessons, but it\u2019s up to you to learn to recognize and advice all the different ways you can be ripped off: Scam #1 - You buy into a promoter\u2019s hype I\u2019m guessing most of you reading along at home thought I was going to start this out with a tip on how promoters are scamming you out of your money and that you should avoid them at all costs. That\u2019s just not true. I hate that people sometimes fall for promoters\u2019 hype, but the thing is, they can actually be useful if you know how to play their tips. I\u2019ve done it, and my students do it every day to capitalize on the run ups (and inevitable crashes) penny stock promoters create. Where I see people getting into trouble, though, is when they start believing a promoter\u2019s hype. The genuinely believe that the \u201chot tip\u201d they got in a mailer over the weekend is going to be the next Google - and that they\u2019re able to get in on the ground floor. Newsflash - if you\u2019re getting a mailer about a stock, the ground floor has long since passed you by! The real truth is that 99.9% of all penny stocks will go to zero. They\u2019re worthless companies! If they had the qualifications to trade on the NYSE or the AMEX, they\u2019d be there - not floundering on the OTCBB or pink\/grey sheets. Promoters laugh when people take their recommendations and buy into their hype. They\u2019re literally sitting there, laughing at you. Don\u2019t give them the satisfaction. Scam #2 - That press release you\u2019re reading is a blatant lie When a legit company wants to go public, there\u2019s a big process they have to go through. They have to file reports with the SEC, and they have to go on \u201cIPO roadshows\u201d to find bankers and investors who are willing to set their valuation appropriately and approve the initial release. Basically, they have to prove that they\u2019re legit. You won\u2019t see that with penny stocks. Companies on the pink\/grey sheets are there because they can\u2019t meet these criteria. That doesn\u2019t mean there isn\u2019t value in trading them - you just have to be aware of what you\u2019re getting into. Because many companies on these bottom-rung exchanges don\u2019t file with the SEC, there\u2019s virtually nothing that keeps them from lying to your face. That press release you saw boasting a penny stock\u2019s big revenue gains? That news article talking about its upcoming merger? They could be real stories - or they could be blatant lies. When you\u2019re trading penny stocks, stick to the patterns. Don\u2019t buy into the hype and don\u2019t let yourself be swayed by false information. Know what your rules are and what setups you\u2019re comfortable trading on, and stick to those alone. Scam #3 - Your penny stock is just a paper company Here\u2019s another fun one...The penny stock you\u2019re looking into might not be a company at all - it might be a paper company set up in name alone! Paper companies get set up all the time, for tons of different reasons. One you\u2019ll want to be aware in particular of is the reverse merger. Remember how I told you how much of a hassle it can be for a private company to go public? Some of them skip the process altogether by merging with a company that\u2019s already listed on an exchange. That\u2019s why there are so many penny stock companies that exist on paper only - they\u2019re just sitting there, waiting for another company to come along and merge with them. Telling these types of stocks apart from actual companies can be tough, but if you follow the patterns and setups I\u2019ve identified over years of trading, you\u2019ll know what to look for. Scam #4 - You\u2019re using more leverage than you can afford to cover https:\/\/www.youtube.com\/watch?vaZkXE8BlHkQ Let me be totally clear on this one - I hate leverage! I\u2019ve been trading for more than fifteen years, and I\u2019m still never so confident in a single trade that I want to tie up somebody else\u2019s money in it. Using leverage is big with institutional investors and FOREX traders - some of whom use 100 to 1 leverage from their brokers. Can you even see how big of a risk that is?? Say your brokerage lets you bet $1,000 when you only have $10 in the bank. If your trade busts - and 5 out of 6 FOREX traders will blow up within 6 months - you\u2019re going to be on the hook for those losses. I\u2019ll take the slow and steady wins I can get with penny stocks every time, compared to putting that much on the line! Scam #5 - You get tricked into playing markets where you have no advantage Another really terrible investing scam I see students falling into all the time is getting into market plays where they have absolutely no edge. FOREX is one of these \u201copportunities\u201d (do you really think you know more about financial currencies than people with the inside scoop on foreign relations??), but it\u2019s not the only one. American depository receipts (ADRs) and mergers and acquisitions (M&A) are two other types of investing plays where big-deal traders have an advantage you never will. Just take M&A trading. A lot of wanna-be investors think that if they get a hot tip about two companies that are planning to merge, they can get their trades in early and come out ahead on the deal. News flash - even if you were able to get in ahead of everybody else (which you won\u2019t, since financial insiders can swoop in on these deals well before your trades will ever be executed), do you really think your investing choices will be smarter than the Ivy League grads and computer algorithms that sit around working these kinds of trades all day, every day? You\u2019re not - and anybody who tells you that these are good ways for normal people with small accounts to get rich is scamming you. Scam #6 - Another trader is playing with the stock I\u2019d be lying if I said penny stock traders\u2019 reputation as the \u201clow lifes\u201d of the investing world isn\u2019t always undeserved. One of the truly frustrating things about working in this type of market is that you run into instances where another trader is playing with the stock. Maybe he sells a big chunk of shares to get other investors to think that something\u2019s going on. Everybody else sees the movement, thinks the stock is crashing and rushes to get out - playing right into the series of shorts he\u2019s setup. Sometimes it\u2019s even more complicated than that. Remember when I told you about Joseph Dondero? He took this type of manipulation to the next level by layering tons of phony buy and sell orders on top of each other get people to act. Some of these scams are obvious, but a lot of them aren\u2019t. So how can you protect yourself? Trust your research and your rules. Do your homework, and base your expectations for the stock\u2019s performance on what you\u2019ve learned and the patterns you know. If things don\u2019t go the way you expect? It\u2019s still better to get out quick and cut your losses than to stay in and get taken advantage of by a scammer. Scam #7 - Following a teacher with no real-world trading experience I\u2019m going to let you in on one of the internet\u2019s dirty little secrets... Anybody with a blog and a few stock charts can call themselves an expert. They can grab a few images of \u201ctheir\u201d sports cars and mansions from Google, pair them with a few bogus stock picks and get gullible students to sign up for their \u201cexpert mentoring\u201d programs. I\u2019ve seen it time and time again - and it really pisses me off. If you\u2019re going to seek out a stock trading mentor (and I definitely recommend that you do from this list), you\u2019ve got to go with somebody who has a proven record of real-world trading experience. There\u2019s a few different things you can do to separate the real traders from the scam artists, but one of the easiest ways to do that is to simply look at their trades. Think about it\u2026 If that \u201cguru\u201d you want to learn from doesn\u2019t show you their trades, how can you tell they\u2019re for real? Honestly, they\u2019re probably not. There\u2019s a good chance all you\u2019re dealing with is a bunch of bullshit designed to rip you off. Don\u2019t get taken advantage of like this! I put all my trades up at Profit.ly so my students can see what I\u2019m doing and what kinds of results I\u2019m getting. My challenge students even get to watch as I make live trades, so there\u2019s no question of whether the advice I\u2019m giving is legit. I\u2019m the real deal, but I\u2019m going to put my money where my mouth is. If you want to see what I\u2019m all about, check out my trades, watch the 30 penny stock trading videos I offer free of charge or hear about the success my students have achieved. If you like what I have to say, I\u2019m here to help turn you into a millionaire. The only thing I\u2019m waiting on is you!