Stock Market Scammer?

[mostdivinemind]

Hey guys, so I posted an ad on Craigslist that pretty much said that I was looking for stock market mentor ship and in exchange I was willing to give up a percentage of my portfolio or any of the services that my small businesses have to offer. I eventually got a reply and the text messages are below.


Do you guys think that this seems like a scam or should I risk the money and go for it?


Any other advice on getting started in the market would be greatly appreciated. Thank you in advance!






(These are the ACTUAL text messages and I did not remove/alter a single thing)
[Mentor]1,000 dollars now and 3% of your monthly profits for a two month period. I will teach you one of my proprietary stock investing methods and I'll mentor you while you learn. I'm a multiple business owner specializing in investments and manufacturing... contact me if your serious and ready to get started..

[Me]Of course. That sounds great! Thank you for replying to my ad by the way. So anyway it's $1,000 as a mentoring fee and you said only a two month period? How much money do I need as an initial investment?


[Mentor]Your initial investment amount would depend on the market segment that you're interested in. However I recommend that you start with no more than 5,000. Within a two month time frame you should have a positive ROI with my help...


[Me]I see. How would I determine which market segment I should cover, is it more of a personal choice or is there a segment that's better than the rest?


[Mentor]The market segment that one chooses MUST always be based on PROFITS... Always base all decisions on profit potential....


[Me]Sounds like a plan. I will keep that in my mind throughout my entire journey. So what exactly is it that I need to get started?


[Mentor]1,000 dollars now and 2 months of available time, which would consist of 2 or 3 hours of training per week. Within 18 hours of mentoring you should be ready to fly solo... however if you need additional help I would be available.


[Me]Ok. Would this be done online, would I travel to you or how does all this work? Say if I have the money and I am ready to start, what's the next step to take?



[Mentor]The mentoring would be via phone, email, texting, Skype when available and in person when I'm at My office in Las Vegas, NV if you're local and when our schedules permit...


[Me]Ok and when are you usually free? Does your schedule vary or when would be an ideal time for you?



[Mentor]This month (July) and August are months in which I can dedicate 18 - 24 hours to you if you're serious and ready to proceed... Historically September has shown profitable opportunities in select commodities offerings, therefore getting started now would be ideal...



[Me] I see. So are you in Vegas now so that we can meet or what would be the first step to take?



[Mentor]I'm currently in Portland and will be back in Vegas this Friday... I suggest that you pay your mentoring fee of 1,000 dollars which could be done by credit/debit card via my PayPal business account, that way you would have a receipt of payment and we could proceed immediately via phone and texting and meet in person this Friday.


[Me]Ok. Could I just pay you cash when we meet?


[Mentor]Sure that's fine. Can you tell me a little about yourself....


[Me]Of course. I'm 21, going to UNLV for Computer Science. Single, no kids. Started my first business when I was 15. Currently have a cell phone repair store and an a separate online business. I'm looking to get started trading as I see a lot more potential in that. I know just the basics about the market. Like some vocabulary, basic knowledge of how it works and I played on a stock market simulator for 30 days last month and had a small positive return on my investment with a consistent strategy that I came up with. I look at this opportunity having a lot of potential for both us to make lots of money as I am willing to share my profits since you are teaching me after all. Which leads me to ask you, why $1,000? It just seems such an insignificant number compared to me offering you a percentage of my portfolio. I'm not sure if that's all that you wanted to know about me or if there's something else, if you have any questions let me know.


[Mentor]1,000 dollars upfront and 3% of the portfolio profits over a two month period is my standard arrangement. My trading systems and strategies are unique and come from hard won experience. The 1,000 shows me you're committed and ensures me that you will follow my methods.


[Me]I see. So have you done this with other people too or would I be the first?



[Mentor]Yes I have been mentoring others since 2006 in matters of business development and alternative investment methods and strategies.



[Me]Okay so you said that $1,000 upfront and 3% of portfolio for 2 months is your standard arrangement, which other arrangements do you have?


[Mentor]I have a upfront flat fee and a split fee arrangement of 500 dollars upfront and the balance of 500 in 30 days, however the portfolio profit percentage would be increased to 7% over the same two month period.


[Me]I see. That's my only concern so far. A couple of weeks ago there was a guy who promised me to do the same thing just like you and I payed him $1500 cash upfront and I never saw him again and he won't answer my calls or text so is there anyway that we can start and I'll give you the full $1,000 two weeks after we start and 3% for 5 months?



[Mentor]I have a potential loss of two weeks of my time which is not refundable. I've built, developed and or redeveloped businesses for more than two decades, I too got started at a young age... I have to stick to the options in which I've presented to you as I don't have time to keep bantering back and forth. I wish you luck...

--At this point, I did not reply as I did not know what to say but he sent me the message below the next day--

[Mentor]I will give you some advice, if you choose to accept it. First, Never allow the bad deeds of others to negatively effect your goals and ambitions. Secondly, A rule from Investing 101: The most basic concept in finance, the time value of money states that a dollar today is worth more than a dollar at sometime in the future. ture. If you invest 1,000 in a 5% savings account today, it will be worth 1,050 in one year. Therefore, if you can have 1,000 today or choose to have 1,000 one year from now, it is always ways better to have the money now because of its potential to grow. I'm sure you know this, however you must keep it at the forefront of your mind and when buying stocks always look for real world value and not simply book value. Furthermore be cautious when reviewing P/E Ratios and Financial Statements... This is advice that's sometimes overlooked, so tread lightly and don't get caught up in the next big thing!!! Find True Value...


[Me]I really do appreciate your advice. You seem like you would be a great mentor. Would you consider $200 upfront and $800 in two weeks? Plus 7% for the first two months? If so, I would be happy to get started as soon as you're ready.



[Mentor]You're willing to make a financial commitment upfront, that's great as that's good business in this case... I will accept 350 now and 650 in two weeks to include 7% over the two month period. If these terms are acceptable to you we can start as soon as the 350 is received. My methods are unique, keep that in mind and follow my lead... You will get more than your monies worth!


So scam or not? What do you guys think?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[socaldude]

At first glance I think SCAM.

But I could be wrong.

I mean think about this guy story. It sounds like he makes more money "Mentoring" than he does trading stocks.

Do due diligence.

Ask for copies of his bank statements and tax filings and ask to have them certified by a county clerk.

Then ask for professional references.

Never blindly do business with someone. You are asking for a nightmare.

If he is legit he would gladly comply.

If he is BS he would come up with some BS excuse.

 

[MJ DeMarco]

If he is BS he would come up with some BS excuse.

Something to the like of..

"It doesn't sound like you're serious about this opportunity. I have 11 more candidates to interview after you..."

 

[donny123]

The traders that I know don't look at P/E ratios and financial statements, unless you are wanting to do some value investing and planning to buy and hold for 3-5 years.
Traders are in and out of the stock in a matter of days or a week. They use technical analysis to determine when to get in and out.
you should ask him more about his stock investing methods.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[ArthurDayne]

Sounds like a scam. Any trader with a genuinely profitable system won't teach it to others, because the more people who do it, the less profit there is to be made.

Also the fees are just plain ridiculous.

 

[Mike Kavanagh]

The way I look at this is

"WIN YOUR WAY TO RICHES, STOCK MARKET GURU SELLS HIS STRATEGIES TO MAKE YOU FILTHY RICH!!!"
All for two super easy payments of $500 (Cash) and 7% of whatever you make. He has to cover his a$$ in case you blow up his strats to non-profitability.

I do have a few questions for you(OP)

Why are you playing the stock market? Don't you have two businesses to be running? Wouldn't both of these create wealth faster than the stock market?

and

Why are you hitting Craigslist for mentors? Do you think someone who is successful at trading is going to just happen to be on there looking to mentor someone or be on Craigslist in the section you posted?

Sorry if this sounds harsh. If someone told me on Craigslist that they could teach me how to make money in the stock market...I'd walk away from the computer and die laughing.

Craigslist is sidewalk heaven. That is why it is so easy to hustle cash from it. Everyone is trying to make a quick buck and don't know real value.

I would go to a trading firm and say, look I have this amount of money to invest. I'm willing to give you Fee+20% of my money(No risk to them)that I earn if you teach me your strategies for two months. I will even handle the work load of a regular employee of your company.

(I'm paying and doing work for you for a certain time frame to learn these strategies that have made your company profitable. Sounds good huh?)

Kinda like @zen******* 's real estate strategy for if he had to start over, slightly modified of course.

 

[ArthurDayne]

Why are you hitting Craigslist for mentors? Do you think someone who is successful at trading is going to just happen to be on there looking to mentor someone or be on Craigslist in the section you posted?

Couldn't have said it better myself. Take a step back and think broadly - where would one find the most skilled investors? Craigslist is not the answer to that question.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[liquidglass]

He'll just be getting you started within two weeks and you won't have turned a profit so he gets his grand either way. If he's promising a certain amount of returns then give him 100% of your profits for 3-5 months which should be more than the current suggestion and if he believes in his "system" he'll take it. So he can have $1,000 now or he can have $2000 later (to use his tactic against him).

If he's making so much he wouldn't be trolling craigslist to find people to mentor, hell no mentor I know would troll craigslist or actively search out mentees unless they are trying to replicate and replace themselves in a business.

He's got nothing to gain long term, he's searching craigslist for people, and he wants money up front with no proof. = scam.

As soon as you ask for financials he'll disappear.

 

[pro]

To tell you if this guy is a scam, if you're serious paypal me $1000 + 3% of your future monthly income

 

[mostdivinemind]

Great advice so far guys, thank you all a lot!

Why are you playing the stock market? Don't you have two businesses to be running? Wouldn't both of these create wealth faster than the stock market?

I have gotten to the point in my small businesses where I have no idea how to start scaling them. My businesses right now are somewhat on auto-pilot so I don't really have to manage them much as I have a business partner and employees. The only thing I worry about sometimes is finding a way to scale them. It seems to me that it is harder to scale a service-based business rather than any other kind. I just wanted to get into the market because I have extra cash laying around and wanted to see the potential of the market.

Why are you hitting Craigslist for mentors? Do you think someone who is successful at trading is going to just happen to be on there looking to mentor someone or be on Craigslist in the section you posted?

True. I actually thought about this before posting the ad so on the ad I said, "If you are such person, or know anyone who can help me out, please feel free to reach me anytime at..." So I figured maybe a side walker might know someone who is making it in the market and recommend him to me but I guess I was just hoping for too much?


By the way, I really do appreciate your advice. Questions like these snap me back into reality.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[pro]

Real advice:
Have him show you a P&L of making over $100,000 last year or ask him for a tax return.
Don't part ways with your funds until you are satisfied.
He speaks like a typical scammer but you're asking for it because you are naive about the stock market and how it is full of guys like this.

This is the problem that people with new money have. They quickly lose it because they don't know how to manage it.

 

[mostdivinemind]

Couldn't have said it better myself. Take a step back and think broadly - where would one find the most skilled investors? Craigslist is not the answer to that question.

It seems as if finding a mentor today that plays with the stock market is close to impossible. I'm not too sure where most of these guys hang out/how to get in contact with one so that's why I posted that ad as a last hope before I dive into the market by myself and throw money away learning the ways of the market.

 

[ArthurDayne]

It seems as if finding a mentor today that plays with the stock market is close to impossible. I'm not too sure where most of these guys hang out/how to get in contact with one so that's why I posted that ad as a last hope before I dive into the market by myself and throw money away learning the ways of the market.

PM me if you want any advice on long-term equity investing, which I'd be happy to guide you to the right resources for. Happy to tell you my credentials. If you're looking for daytrading folks I think there are quite a few of them on here (vast majority in fact) who'd be happy to share. This is the thing about forums - people are here to share.

If you want something much more personal (i.e. someone in your area who you can meet), I'd say join an investing club. They're usually full of experienced people who are eager to teach. Or if you want to be more aggressive, bug some people in the asset management industry wherever you live. You'd be surprised how willing people are to talk about their investing style. Without charging $1000.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Mike Kavanagh]

The only thing I worry about sometimes is finding a way to scale them. It seems to me that it is harder to scale a service-based business rather than any other kind.

I find scaling easy, starting is the hard part for me.

My mother has a service-based business. She needed help scaling. Here is what I told her.

Move out of this single location. The majority of your clients are here. There are at least four other regions in state that could use your service. It's a cleaning business and she was super concentrated on one area.

If you have a physical location, add another a bit of a distance away. I don't know what kind of businesses you run so I can't give you specifics.

This way your upper limit expands. Instead of being able to service only the area you're located, you get to service a whole other area.

Of course, don't just take my advice. There is a lot of research to do.

With my mother's business, I looked at the areas with people having 150k-250k/year income from either a government or executive job. These people have the least amount time because they work so many hours.

My mom's business allows people to save time and not have to clean their house. They get to spend more time with their family or have to rush to have company over.