(Boursier.com) — The financial markets are an often complex world where amateur traders can leave their mark… Here are some examples not to follow!
Scams: “the pigeon hunt is on”
In February 2023, a Frenchman lost 350,000 euros on a cryptocurrency platform. The scam is known as “Pig butchering” or, in French in the text, “cut up a pig”… The principle is simple: After a discreet and progressive approach, the scammer “works” for several months his future victim to become his “friend” or even his “lover”. Affective manipulation leads the stock marketer to convert his funds into cryptocurrencies. When he realizes that the platform used is not legitimate, his money is already far away…
Advice : Be careful to choose your transaction platform carefully and carefully sort your contacts!
The stock market without protection?
Mickaël, a 47-year-old teacher, placed three buy orders without setting a protection threshold during the fixing period preceding the closing. During this time, the purchases do not appear in the wallets, which may suggest that the order was not executed. To make matters worse, the stock fell by 40% the next day in the first minutes of trading…
Advice : Protective barriers exist against this type of mishap, starting with the adoption of a transparent and efficient trading platform!
For a few more Swiss Francs…
Amateur traders are often motivated by obtaining rapid stock market gains and are sometimes led to take unnecessary risks… It is therefore essential to fully understand how the products subscribed to and the associated risks work, particularly in certain markets such as Forex (currency market). This would undoubtedly have allowed Nathan, an amateur trader from Geneva, to avoid disaster: In 2020, after investing 500,000 CHF in future and options transactions, he found himself owing 1.7 million to his bank. ..
Advice : Ask your intermediary carefully when you handle certain risky stock market products or when you invest in certain volatile markets!
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