Fake stock market gurus can cause you to lose a lot of money

The crisis emanating from the pandemic has served as a claim for hundreds of bogus stock market gurus to sell the “solution” to the economic woes of millions of people in Spain. These characters use their Instagram accounts and YouTube ads as promotional channels, offering their stock quotes while showing expensive vehicles and mansions in the best areas of the country.

in one Five days article they quote Joseph Aramthat dealer who became famous after appearing on the program Salvados with Jordi Évole and is characterized by his tattoos and his unusual style of clothing in the financial sector.

However, the poor results of his SICAV – it recorded losses of more than 20% – forced him to close the company in 2018. Since then he has not stopped offering courses in which he teaches his investment method in the stock market. Use one to do this strong follower base on Instagram -almost 300,000- and advertising on Youtube as the main platforms for their marketing campaigns.

Following in Ajram’s footsteps are other fake stock market gurus, They charge up to 1,250 euros for their investment courseswhich in many cases only serve to make their students lose a lot of money on the stock exchanges following the wrong guidelines of these so-called experts.

To win over their audience, they feature supercars or mansions in their ads in the most expensive parts of Spain – and abroad – and attribute their success to a supposedly infallible method of stock market investing. Also, sometimes they hire others influencers to recommend their courses or investment platforms to those who pay between 200 and 800 euros for each user they retain, as reported by the newspaper Cinco Días.

Investment clubs on the stock exchange

In addition to courses, these fake gurus use other formulas to get money from their followers. One of the most common is the creation of Stock Investment Clubs. It’s a subscription service, priced around $100, that gives its clients investment “ideas” for specific actions that promise stratospheric returns.

This method absolves from any responsibility scammers who distance themselves from the concept of recommendation – for this it would be necessary to be regulated as an entity – and can lead to subscribers losing large amounts of money on the exchange who accept these ideas safe bets.

“These gurus copy some poker stars’ business model: glitz, women, travel, cars… to instill a sense of wealth and then sell their course,” explain the experts Cinco Días. In this sense, the National Securities Market Commission (CNMV) has already warned of the dangers of believing in these types of fake experts to invest in the stock market.

Stock market, management, investments, affiliate programs