Reliability

The core question: is daytrading or swingtrading legitimate or a scam?

The answer is: both. Let's look at why. Trading itself is fully legitimate, and it IS possible to become very wealthy through it. The reality, however, is that very few people actually achieve that.

The hard reality: why 85% of traders lose

Let's be real: trading is not an easy way to make quick money. Independent research and data from regulated brokers consistently show that between 85% and 90% of retail traders lose money in the long run.

Why does it go wrong?

• Lack of education: Many beginners start without basic knowledge of market structure.
• Underestimating risk: Trading with excessive leverage can wipe out an entire account within minutes.
• Emotional decision-making: Most beginners do not have their emotions under control, and emotions overrule logic.

How to recognize a trading scam (red flags)

Although trading itself is a legitimate activity in global financial markets, the industry around it is vulnerable to scams. Watch for the following warning signs:

1. Guaranteed profits: No legitimate trader or strategy can guarantee returns. Markets are inherently unpredictable.
2. Luxury as bait: Influencers showing off sports cars and yachts often make their money from selling courses, not from trading itself.
3. Telegram signal groups: "Copy trading" without understanding the strategy yourself is often a recipe for losses.

Is trading legitimate? The AFM perspective

Yes, trading is a legitimate economic activity. Professional traders provide liquidity to markets. Trading stocks, forex, options, and crypto is fully legal, as long as you use recognized platforms.

Checklist: starting safely

Ready to take the step? Use this checklist to avoid getting scammed:

• Choose a reliable broker: Do proper research and ask for recommendations in trading communities.
• Start with a demo account: Practice papertrading until you have a profitable strategy.
• Focus on risk management: Never risk more than 1% of your total account value per trade.
• Stay skeptical: Treat every "get rich quick" promise or "secret strategy" as a potential risk.

Conclusion: trading itself is not a scam, but getting rich quickly is a myth. It is a learning process, and mastery comes through practice. Tradorade helps with detailed statistics, analysis, self-reflection, and optional support from an experienced mentor.

Want to learn more about the difference between trading and investing? Continue with our article: Trading vs Investing