Traders: Millions By The Minute – Some Glaring Problems 1

By | October 8, 2014

Traders-Millions-By-The-MinuteRecently BBC Two aired a 2-part documentary series called Traders: Millions By The Minute. It purports to take a look at some professional traders as well as a few wannabees. I found it instead to be a full of deceit entertainment show. I’ll list here the issues I found with the second episode, and I’ll write another article for the first one.

Charlie Burton is presented as belonging to the 10% of traders who are profitable. We are also told that his disciplined approach made him a millionaire. He pays £200/month for his forex charts. If he makes one successful trade in the morning banking around £1000 he’s pretty much done for the day.

What’s wrong with this picture ? For starters, there’s absolutely no proof presented that he can trade profitably. There’s also no proof that he made the alleged millions trading. After looking him up on the internet, I found out that he’s running a company selling trading education for more than £1000 a package. Now, if he really is a millionaire, this surely seems the more probable way he became one.

I see two problems with his trading approach. Firstly, there’s no need to pay for charting software in forex. With  the volumes he supposedly trades, he should be getting the best charting for free from his broker. Secondly, I can think of no logical reason to stop trading just because you made an £1000 profit. Not only that it goes against the old and true adage ‘…let profits run’, but a professional trader trades the market, not the money.

Justin and Akil, 2 guys in their early twenties. One of them (Justin) has been trading forex for nearly 4 years, the other takes care of the admin side of the business. They manage now over £1 million. They drive in a Mercedes C63 AMG to the house of a Premiership footballer to pitch him to invest with them. They show him the profits they made in a few months’ old demo account. The footballer’s wealth manager gave him the green light to invest £100k with the duo. He’s convinced by their pitch and they shake hands.

Whoa, this is wrong on so many levels that I don’t know where to start. Let’s see, like before, there’s no proof of the supposed £1 mil under management. Actually there’s no proof these guys even trade a live account. They are in their early twenties, don’t appear to come from wealthy families, almost 4 years of trading experience and already drive a Mercedes AMG ? It sure sounds like a Ponzi scheme here geared toward a minority group (black people).

Anyone remembers Alex Hope ? :) . Regarding the wealth manager’s approval for the investment, I like to think that he was somehow misinformed. Otherwise he must be ranking among the most incompetent managers for considering doing business with those two clowns. I mean, seriously, giving money away based on a few months’ old demo ?

Etoro social trading platform gets a few minutes of advertisement. You can follow ‘professional traders’ and copy their trades. One of the most popular is one Spanish guy, Malsolo. He has 5k copiers.

This is beyond joke. I looked up the leaders, they all seem to sit on big losing positions, some of them over one year old. They’re quick to bank a profit, but when the market turns against them, they let the losses run. And they’re called ‘professional traders’? :)

Review of first episode: here

24 thoughts on “Traders: Millions By The Minute – Some Glaring Problems 1

  1. mmm pindah gwgw

    For a trader to be successful in his trading his skills alone is insufficient, the trader should have his trading
    account with a highly cooperative forex broker that could offer you various assistance with their experience and features.
    Today, most novice traders are looking to take short cuts or think a guru mentor or robot can give them success but the reality is ( as
    with any venture where there is a lot of money to be made ) you need to
    do your homework and get the right forex education.
    There is quite a lot to learn on technical analysis
    and learning is the main key to become a successful trader.

    Make sure you have developed and tested your strategies
    for each type of market activity.

    Reply
  2. Vinny

    Did you ever think about researching accordingly before you actually wrote this? Charlie Burton from Ezeetrader is, in fact, not only consistently profitable, but also a very well respected trader in London. Everyone else, I don’t know but been following Charlie for quite some time. Charlie isn’t about showing off or proving himself as he is about teaching others about risk management and importance about how state and risk are very crucial in being consistently profitable. Furthermore, Charlie did a webinar on going from $10k to $100k within 2 years – I was there when he initially started. Though he was nearly successful, he was close to this target after overcoming 2 major draws.

    It seems you know nothing about trading as other profitable traders can pick up right away if another is profitable (based simply on mentality), the charts and indicators (or lack thereof perhaps), as well as, integrity/transparency.

    And btw, I don’t work for charlie so please dont think this comment is re that. I am a trader myself and highly respect him for what he does, and esp since I followed him way back when I first got into trading. It doesn’t matter whether you think he is profitable or not, just grasp the mentality of a trader, limit your risk and get a slight edge based on technical analysis, and you’ll be profitable in no time! It really isn’t difficult when you have a traders mentality, but much easier to lose it all over a few mistakes

    Reply
    1. JLTrader Post author

      it’s very easy to make claims of consistent profitability and taking 10k to 100k in 2 years, but how about some actual proof ?

      Reply
      1. Luke

        His proof is in the webinars if you actually cared about conducting your research diligently. He runs through his entire account statement for the two year period showing all losses and profits. He also does live trading videos every Friday where you can see him trading the forex markets for both losses and profits. He has taken part in the live trading event at the London Forex Show for the last two years and won them both. For someone who seems so hung up on proving if they can trade, you seem to do very little to justify your 550euros per month for your trading education

        Reply
        1. JLTrader Post author

          Yeah, the camera caught a glimpse of a statement in the documentary as well, if I remember correctly. Couldn’t tell if it was a live account or not, and anyway there weren’t many trades.

          Maybe you can provide a link to those webinars (and if you’re kind enough the exact minutes as well) where he shows the entire account statement for 2 years. Let me tell you that trading is not a magic show, one that you do ‘live’ in front of a crowd, so I’m not impressed by this type of tricks.

          As for me, there’s simply a delay with Darwinex’s corporate accounts – they should’ve been ready a month ago.

          LE: Is this what you call ‘live trading’ ? http://ezeetrader.com/charlie-banks-over-1000-in-todays-live-trading-video/ LOL Supposing you’re an honest guy and not a shill for Burton coming here to waste my time, do read this: http://www.jltrader.com/2015/04/14/trading-educators-and-the-live-trade-setup-gimmick/

          Reply
          1. Luke

            So your Darwinex profile shows you made a return of -6.34% in four months of trading. Quick where do I sign up!

        2. Øystein K

          This is just sad reading. Charlie Burton is a well known name in the trading community. Im a trader from Norway, and even I know of him very well.
          We even share many trading values.

          I attended a trading show once in France where he did live trades in front of the audience. And trust me – that man knows how to trade.

          Reply
  3. Stephen

    “It doesn’t matter whether you think he is profitable or not, just grasp the mentality of a trader, limit your risk and get a slight edge based on technical analysis, and you’ll be profitable in no time!”

    Where can I sign-up.
    I wonder how Charlie is getting on with the $50 million fund he allegedly manages.

    Reply
    1. JLTrader Post author

      Yeah, you’re right.
      And isn’t it funny that all this time there is no third party verification of that performance ? I mean, assuming he really took 8k to 60k in 2 years with reasonable risk control, word would’ve gone out. The fact that the only proof is him scrolling an account statement in a video speaks volumes as to how this is all just a smoke screen.

      Reply
  4. John

    I’ve always found is strange that Charlie Burton is so obscure for such a skill self promoter(i.e a frequent attender at Investing Expos, youtube trading vehicles).
    Especially considering he was asked to manage a $50 million dollar fund, and recently a $40 million fund (http://ezeetrader.com/40-million-to-trade-mondays-final-video-of-2015/?inf_contact_key=41576ce19bdaef2b3b8c323c67ecc2d8e73a14394d3d3a2e0964cf325f413dc8)
    I’ve yet to see any reliable evidence that he is a profitable trader and plenty to see he is a skilled salesman

    Reply
      1. Charlie

        My name is Charlie Burton and I’ve just been passed the link to your blog. Your claims are unsupportive, mine are not I’m afraid so I’m happy for you to contact me because you are making claims about me which amount to defamation. That trading is all 100% real. I put my neck on the block to show people I’m not some run of the mill educator and then find people such as yourself still claiming me to be false. Come along to any of the live trade off’s I’ve won or indeed ask me directly about my performance before writing on a blog which amounts to total guesswork.
        I will be speaking to my lawyers if, once you have contacted me and I’ve shown you your evidence, you don’t retract what you have said on this page.

        Regards

        Charlie

        Reply
        1. JLTrader Post author

          I don’t have to contact you for any evidence – if you really wanted to stand out from the run of the mill educators you would have put 3rd party verified performance on your website.
          You want to speak to lawyers for what I wrote in the article and comments here? Man, you have chutzpah!

          Reply
          1. Christopher

            I don’t get these so called professionals. The easiest and most effective way of countering any negative claims would be to simply put up some sort of verified results, I mean if you had the results it would too easy to post them and shut down the critics. But of course the simple solution never prevails because there is no track record.

            All this lawyer talk is just another cover up to sound legit when they are clearly not

          2. Rafal

            Selling trading courses is 1000 times more reliable source of income than actual trading. Financial markets are very close to being 100% random and to make things worse we have to pay transaction costs. You can not beat randomness with any kind of hard work, mentality, psychology or determination. It’s a red herring. It takes a lot of time, work and sometimes money to realize it. That’s why you never see hard proof of profitable trading. Instead they give all that BS.

  5. George

    If I was a trader, successful and happy to share my methods and educate people, I would not worry about what others have to say. It really wouldn’t matter because I would be confident that I was making plenty of money and teaching those few traders who cared to listen.

    Now. If I was simply an educator, of course I would be very unhappy to see such comments and would want to make legal threats so as to safeguard my business, my main source of income.

    Make of the above what you will. But to conclude my comments, I’ve had the privilege of a long trading education, and when I see something like this: http://www.simply-one-click.com/ I feel very sad indeed….

    Reply
    1. mac

      Hi George,
      Re: >.simply-one-click.com<

      So if I have understood that sales pages misdirection correctly:
      The outcome over the first 18 months would be:

      Total earned in their illustration: £2070.00
      Less the cost of their software rental: £1799.10
      Gross profit = 270.90
      —————————————————————————-
      Less the Broker Fees, whatever they end up being !

      WOW, seems like a great deal !

      Reply
      1. George

        No Mac, you gain form the ‘valuable’ education, so that’s what you are really paying for but they are trying to entice the noobs in by saying you can just chuck this EA on your charts and you might make some cash to cover most of the cost- no experience necessary. I wouldn’t be surprised if it was a simple MA cross or touch EA – very similar to the swing trade method they sell which costs a few hundred £s. Ezee trader promotes simplicity. The markets are far from simple and the underlying causes of price movement aren’t determined by trading indicators.

        I would rather learn how to trade as to how an institution sees the markets, based on sentiment and macro global economics, then a little tech analysis to capitalise on the liquidity i.e entering close to where the institutions would be entering. Now that would be proper education, not something you can look up on babypips for free. Charlie – you should be ashamed of yourself!

        Reply
  6. mac

    BTW:
    The gross profit of £270.90
    is minus the original stake of £300.
    So that’s a loss of £29.10 !
    + further loss when adding the broker Fees, whatever they end up being !

    Reply
  7. Christopher

    Rafal

    I agree that education is far more reliable income for most traders out there but not all.

    Totally disagree that markets are 100% randomness. Too many professionals over the decades have proven that wrong; Livermore, Dunn, jones, soros and the list goes on. If it truely was randomness then all a hedge fund would need to do is create a algorithm for randomness with a high pay off to risk and bingo! But that hasn’t happened, even with all the technology.

    Reply

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