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Skilled commodity trader with multiple decades of experience, Peter Brandt, has taken to his X account to address his community of followers with an important warning. Even though he did not talk about crypto, this message can be very useful to those who trade regular assets.
Three red flags signaling scammer firms
Peter Brandt spoke about Sim for Payout scammer firms, meaning untrustworthy proprietary trading firms. According to Brandt, these firms promise “live funding in a matter of days,” “lots of screen shots and bells and whistles” and, finally, “pimp affiliates.”
These scam firms promise young and inexperienced traders with fast funding, they stimulate payouts using a large amount of screenshots and hype, and they also use fake promoters to ensure aggressive marketing to lure new victims in.
In a tweet published after this, Brandt said that he had received a request to name some of the biggest Sim for Payout scam firms, but the trader stated: “I refuse to name names.” Instead, he did give four “names” of those companies, but they consisted of the first and last letters only.
More advice for novice traders
Peter Brandt also generously shared some more advice with new traders. First, he rejected a popular idea that to start a trading career, you need more capital than that which they have. Brandt has called it “a big pile of B.S.”
The trick here, according to him, is to learn to trade successfully with small capital. If you cannot do that, he said, the same will happen to a large capital — traders will lose it easily: “AUM means next to nothing.”
The best way to become a good trader is to make mistakes, learn from them and actually trade: “The best traders are those who grind it out all by themselves through trial and error.” It is a good idea, he added, to start trading on hypothetical accounts that are free to use: “That is the place beginners need to start.”
Dan Burgin
Vladislav Sopov
U.Today Editorial Team