$72 Million Liars: Get Real With Trakinvest
You may have read the viral story going around about the 17 year old “stock market genius” who made US$72 million trading penny stocks. Unsurprisingly, it turns out the guy is a fraud without a record, and there’s a key message to learn from all of this – click below to find out more.
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Some stories are too good to be true, and the miraculous tale of “millionaire” Mohammed Islam of Stuyvesant High School in New York is definitely one of them. A few leading newspapers, journalists, and even some websites dedicated to finance and equities trading fell for his lies. Breaking news text in the UK’s Daily Mail read:
“New York schoolboy ‘made $72million trading stocks on his lunch breaks’ – and now takes his friends out to dine on $400 caviar, drives a BMW and has definitely made his immigrant parents proud.”
The New York Post originally ran the story, but it seems after the news spread around the world the 17 year old “Teen Wolf of Wall St” got so scared he ran to the New York Observer with his tail between his legs. You can read the interview here, but the best part that sums it all up was journalist Ken Kurson’s direct questions:
You seem to be quoted saying “eight figures.” That’s not true, is it?
No, it is not true.
Is there ANY figure? Have you invested and made returns at all?
So it’s total fiction?
Forums and social media blew up with comments from sceptics who derided the lack of information (how much capital did he start with?), and who found the math involved impossible. On Reddit.com, user nkdmansam wrote:
“I heard this story on 1010 WINS this morning and shook my head. Even if it was true, which I knew it couldn’t be, the odds of taking a high school kid’s net worth and using it to generate $72MM in a year via trading are astronomically low. He would have had to make several successful, sequential, extremely high-risk, all-or-nothing bets. I admit, the fact that I heard it from what I consider to be a credible news source did throw me for a loop at first. “
You can easily do the math yourself, as Reddit user proROKexpat did when he calculated, assuming Islam tripled his money with every trade, how you could possibly turn $10,000 into $72 million:
- Trade 1 10k into 30k
- Trade 2 30k into 90k
- Trade 3 90k into 270k
- Trade 4 270k into 810k
- Trade 5 810k into 2430k
- Trade 6 2430k into 7290k
- Trade 7 7290k into 21,870k
- Trade 8 21870k into 65,610k (lets assume 72,000k)
Okay, so the story is rubbish. The real takeaway here however is that this whole saga highlights a serious problem plaguing retail investors and the finance industry today: a serious lack of accountability when it comes to track records in equities trading. There are plenty of folks, even journalists whose job it is to report on finance, who fell for the far-fetched story because there’s a perceived air of “mystique” attached to being successful as a stock trader. As a Trakinvest user, you’d know that’s the complete opposite of the truth.
With Trakinvest, you create real and verifiable records of all your trading activities that you can use to prove whether you’re the next Paul Tudor Jones. Or prove that you’re simply someone worthy of a good job in the finance business, whether that’s with a brokerage, an investment bank, or simply showing you have what it takes to handle your family’s second income.
Too often, retail investors suffer because they’ve been convinced to invest their money with others without any real accountability shown to them or track records provided. Trakinvest is changing the status quo by giving you the power to improve your own investment decisions by providing reliable, quality information and the ability to learn from others who have proven track-records. Along the way you can participate in competitions to earn prizes and even jobs and internships with top firms – that’s the Trakinvest difference.
So next time you’re on the site, whether you’ve experienced a portfolio gain or loss this week, smile and congratulate yourself because you’re out there learning, improving, and creating proof of it. And who knows? Maybe you’ll be in the newspapers as the next person to make millions from the stock market, but you’ll be able to prove it.