When I read this article on CNN Money about the rise and fall of Andy Zaky a cold shiver took hold of my body. I have been promoting the use of online investment marketplaces and social trading networks for the last few months. This is part of my mission to promote new finance services, but it was a curiosity for me how on these platforms the majority of investment strategies were mainly short term trading.
Although short term trading is a good way of earning money in the markets it is clearly not a good strategy for the bulk of our savings. It is very risky to use trading as your main strategy to meet long term goals like college education for your children or retirement.
Andy Zaky’s story is about an investment guru that became notorious trading Apple (AAPL) stock in recent times, built a big following on the internet, and then many young investors who implemented his suggested strategies lost everything with high risk option trades.
This terrified me. As a 20 year Wall Street veteran I’ve seen many cases like this where it wasn’t about fraud like Bernie Madoff, but a young pro who started to get emotional about his trades and ended up realizing, too late for him and his clients, he was wrong.
My main concern is not necessarily that these things happen, but that with the internet and the services I was promoting the effects of these investing mistakes can be hugely amplified.
So, what is the solution? education. This is where I am glad to have found WealthLift.com.
Now I can feel more confident when I explain and promote excellent services like eToro, Covestor, and MotifInvesting because I can also suggest the use of WealthLift for young investors to learn about stock market investing before engaging in these platforms.
WealthLift is an intergrated investment community where everything starts with a good investment and stock market training. When you register everything starts with an online, e-learning type of education on what are stocks, how markets work, and how to create portfolios.
WealthLift accomplishes this by offering free online video and written classes with embedded quizzes along the way. After you “graduate” you may qualify to open an online account at a big online brokerage firm with some promotions including a $100 starting capital.
After the educational process you remain as a member of WealthLift’s active investment community where you can interact with other investors and pros, and you can follow or be followed by fellow investors.
In addition to the above you have acces to stock research and you can start and manage a practice portfolio that others can see and follow.
So my fears are put to rest now that I know that on the internet there are not only some potential threats, but also some great investment services including excellent education on WealthLift that can prevent many amateur investors, especially the young, from making some common investment mistakes at the beginning of their journey.