A Foolproof Way to Identify the Financial Analyst "Stars" That are Actually Frauds
And it works everytime
To begin, welcome to all those who subscribed to my last newsletter that I previously ran on the MailChimp platform. To the subscribers that opted in to my last newsletter that have now been added here, let me update you on what I’ve been up to, because I know it’s been nearly three years since you received a newsletter from me. As well, I apologize for the late notification of my new platform here, but after you read my explanation below, hopefully you will understand why I was only able to inform you of my new platform here in August of 2022. For all others that know this story, you can skip to the article accompanying this podcast that begins below.
To begin, for all of 2020 and nearly all of 2021, I was silent because I was locked down on a two-week holiday in Vietnam that turned into a government, Covid policy enforced 2-year involuntary stay outside of my home country. During this time, my professional career completely came to a screeching halt and I had to figure out how to survive with only the money in my wallet and a small carry-on suitcase, with not even a laptop at my disposal. During this period, I had more than six flights cancelled to return home either as a consequence of Vietnam or Thailand closing its borders during this period from exit or entry. During long stretches of time, all national transit systems were shuttered, including the airport in the city in which I was stuck in Vietnam. In fact, when I finally was able to exfil from this nightmare, I had to hire a private driver to drive to a city eight hours away, as the airport in my city was still shuttered.
Thus, the above explains my “disappearance” from having an online footprint, before the launch of this newsletter. It also explains why I have yet to launch my 22-course wealth building academy, skwealthacademy, originally scheduled for launch in 2020. You may learn more about my academy here, as I have already completed development of all materials for all my courses and the launch date is getting closer and closer. Currently, I’m in the process of registering my company, choosing the online platform on which to launch my academy, and progressing through the bureaucracy of filing the necessary documents and fees to launch a new company in my new home of Mexico. I am aiming for a soft launch within the next 6-10 weeks and I’m super excited about the transformation of 15 years of sweat equity into a real business, as well as the prospects of finally having a real income stream again for the first time in three full years.
During the time I was locked down, because of draconian tyranny applied by governments in Asian nations in response to Covid, I was unable to work or properly exercise, and I literally was forced to ration food at times to avoid going hungry as neither the US embassy or the Vietnamese government provided any assistance to any of us despite political decisions that prevented me from returning home for two years. And this is how my substack newsletter came to be. Because I needed to build a minimum and completely new income stream to pay for rent (that included rent payments in my home nation as well) and food expenses while trapped in a foreign nation, I worked tirelessly during my lockdown phase to launch both this newsletter and my patreon platform. However, neither will serve as my primary income stream, though I will most likely keep both platforms running even after I launch my academy, depending upon what I can pack into a 12 to 14 hour day.
But for those of you that were just added to this platform as free subscribers, take your time to explore the large amount of free content posted here (most free content was posted prior to June 2022, but I still post at least one free post every week!) As a new free subscriber, after reviewing the content here, if you merely want to stay on board to access all the free content, then I’m happy to have you on board as a free subscriber. On the contrary, after perusing content here, you decide that would like access to all content behind a paywall, then you may sign up as a paying member as well. Or after reading the fact sheet to my academy, if you would rather wait for the launch of my academy to join that platform, then simply wait for my academy launch.
The point is, I’m glad to have you here on board in any form. In addition, as many of you had expressed strong interest in my skwealthacademy venture that I’ve still not launched due to the explanation above, know that I will be posting short introductory videos here that explain all 22 courses in the weeks leading up to my launch. Thus, even if you have no interest in the topics I discuss here, please stay subscribed as a free subscriber to stay-up-to-date regarding all developments of my impending academy launch.
Now on to the brief primer to accompany the above podcast. If you become a subscribing member, you will discover that a lot of the stand-alone subscription articles I publish here are in-depth, lengthy researched articles that require dozens of hours of research. Without further ado, let’s discuss “Identify the Online Financial Frauds.”
As Shark Tank’s Kevin O’ Leary conveyed, when recently asked about how he learned enough about BTC to start heavily investing in it at the annual summer cryptocurrency conference in Miami, he revealed that he learned everything he needed to know about bitcoin from watching YouTube videos. Huge mistake. As I pointed out in a previous podcast, one of my subscribers on this platform, in response to my prior criticism of YouTube financial analysts for spouting nonsense to literally millions of their subscribers, informed me that one of the current biggest financial YouTube “stars” (measured by number of subscribers) was formerly a magician with zero professional background in finance or investing who got completely lucky by investing his massive monthly advertising revenue from his YouTube channel into BTC and riding the wave up a few years ago with everyone else. Consequently, he used the luck from his one successful investment to flash stacks of cash on his channel, thereby gaining “credibility” among millions as a guru, and consequently has been leading his millions of followers into the poorhouse ever since.
As I’ve often repeated in this newsletter, anyone can get lucky with one great investment once and ride the mania of an asset’s parabolic price rise to quick riches, but to have repeated success with various investments over time, and even to keep one’s profits from the lucky one-time investment requires real investment acumen and skill. Those that have been patrons of mine on the patreon platform know that my biggest winner thus far on that platform was a simple long position that rivaled the returns of BTC’s earliest adopters but in an even more condensed time frame, as I provided a buying price for a stock that returned over 5,100% returns in a year’s time (and quite honestly, anytime someone picks a stock that appreciates 52X in share price in a years time, some luck has to be involved). However, no one would continue to follow me on patreon, or at least no one should continue to follow me on patron, if since then, all I’ve done is provide losing investment picks and tried to ride that one successful call forever. I’ve needed to prove that pick was not a one-time lucky event by literally providing dozens of other successful investment picks since then, the results of some of these which can be found here. Initially, just to build a following on Patreon and here on Substack, I had to prove my level of investment skill on my financial blog, predicting in this article 14 companies across European, Asian and US stock markets that would tank as a result of Covid lockdowns in early 2020. After I published that article, 13 of the 14 stocks I picked to crash immediately crashed by 20% to 37%.
However, patience in investing, one of the most important commodities to possess to execute successful investing strategies, still remains a difficult skill to appreciate among the masses. I have often observed during the last two years on my patreon platform, a very small group of patrons that unsubscribe to my platform every time I go a month or two without providing any buy opinions for a group of investment assets. They do so because they believe there is no value in my guidance to wait for a decent risk-reward setup to invest in a group of assets to develop into a tremendous risk-reward setup. Obviously, since I told all my patrons to sell BTC at $66,000 last November and not to buy during the entire decline in price since then, tremendous value exists in demonstrating patience and waiting for the correct time to buy. This is a lesson that takes many years to learn but is one very much worth learning.
The perceived value of patience in investing, however, was unfortunately destroyed by the past years of crypto mania. The crypto mania of past years was a terrible development for retail investors in general because not only did it produce hope as a viable investment strategy for millions (it is not), but it also created an “immediate gratification” with little to no work investment mindset among millions (i.e. the do-nothing HODL mentality that worked when crypto mania was ongoing but will no longer work moving forward). This fiercely embraced wrong investment mindset created by BTC maximalists during the mania years produced millions of retail investors incapable of understanding the value of patience. Some of the greatest returns in investing have been the product of immense patience before entering investment opportunities as asset prices crash and not just buying an asset because of a 100% speculative guess that “this asset must be a great buy because it already crashed by 50%”.
In fact, on this platform, I’ve warned of further crashes in two investments in May 2021 and in January of this year, Doge coin and the ARKK ETF, that retail investors were snapping up simply because they believed they would skyrocket in price because they had respectively already crashed by 41% and 50%. After my issued warnings, Doge crashed by another 88% and the ARKK ETF sold down by an additional 53%. Buying at the wrong price point, even after massive dips, due to being sold on an “it’s cheap” narrative based on zero insightful analysis, will always still create massive losses. Furthermore, one will never maintain profits if one actually has no skill or expertise and is merely an actor playing the role of a financial expert. Apparently, these types dominate the social media financial world and are among the most popular social media financial “experts” with cumulative tens of millions of followers. So, listen to the above podcast in its entirety to understand how to avoid following the implosion of social media financial stars into even greater losses that will accompany the implosion of the Bubble of Everything.
I’ve only critiqued the specific analysis of one social media financial “star” that literally reaps millions of dollars every single month not from any sound guidance and analysis he’s provided (in fact, from what I can tell, he’s provided terrible guidance that has wiped out the savings of many of his followers this year), and it’s unlikely I will do so again in the future. I only analyzed the financial analysis dispensed by another because one of my subscribers forwarded a video to me and asked me if I thought this analyst’s analysis was solid (I did not). However, I recorded the above podcast because I wanted to inform all of you of why you can mark, beyond any reasonable doubt, social media “stars” selling trading systems that they guarantee will produce 20% monthly returns, or even 20% annual returns, as complete frauds. And even though such guarantees are obviously fraudulent, it’s not these fake “guarantees” that identifies them as complete frauds. It’s the fact that all of them expose themselves as understanding nothing about the computer dominated, HFT algorithmic controlled state of asset price manipulation today.
In fact, were these social media financial experts to achieve success in selling their incredible trading system to thousands of clients, this very act would almost ensure that their system “guaranteed to return a 10% monthly return or 25% annual return” would fail.
Ironically, the very act of their success in luring thousands of people to use their systems near guarantees the failure of the very systems touted by these financial “experts”
And I explain why you too can draw this same conclusion in the above podcast. The caveat is that these financial experts all claim that you can duplicate their monetary success, success that comes from YouTube advertising revenue or other social media platform revenue, and almost never money earned from their trading or investing skills (unless it was a one-time, non-duplicable lucky BTC and/or ETH trade), with almost zero effort or work. They claim that it is their “system” that will guarantee you the same financial success they’ve achieved, flash stacks of cash earned from subscription fees and advertising revenue and not from investment acumen, and lure thousands of gullible, naïve investors into buying their “system”. Of course, you will never be able to replicate their financial success unless you also lack any moral conscience and are willing to dupe millions of people into believing that your financial success is derived from your investment expertise when in reality, it was either a result of a one-time lucky trade or a direct consequence of millions of followers dipping into their back accounts to pay their subscription fees every month.
So, if you’ve known anyone to be duped by such people, simply share the above podcast with them by clicking the share button at the top of this post so they too can understand how to easily spot a fraud. Online financial frauds always make claims that are impossible to deliver upon because they have zero understanding of modern pricing mechanisms in today’s investing environment. In great irony, the explosion of social media platforms has created dozens of perceived financial “experts” with millions of loyal followers that really have little to no understanding of how markets work and what factors really drive asset prices. The entire lot of them never would have been able to build their current perception of “expertise” among millions without the existence of social media, would not have led millions into the poorhouse this year with their terrible “advice” about buying every dip in cryptocurrencies and every dip in the stock market, and would never have acquired a reputation as an “expert” if they actually had to demonstrate a high level of acumen through the building blocks of demonstrated sustained and repeated investment success.
In conclusion, if I stated anything in the above podcast that you believe will be beneficial in helping you avoid such scam artists in the future, please click the share button above and share this post with all of your friends.
PS. As I know hundreds of TA (Technical Analysis) financial analysts exist on social media, I will use the quantum physics tenet of “It isn’t real until it is observed” to debunk TA as a legitimate form of asset price prediction in an upcoming podcast, so stay tuned.
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Disclaimer: All information authored by J. Kim on this platform represents only Mr. Kim’s opinions and does not constitute financial advice. For the full disclaimer, please read our “About” page.