5 Tips to Not be in the 70% of Losers on Quantum AI

by sircles on Feb 01, 2024 in boiler room scammers, Trading Robots, CFD & ForEx
Trading has its own advantages, but it comes with a risk of losing funds in full or partial amounts and must be taken into consideration by investors who are just beginning their journey. About 70 percent of investors are likely to lose money.

 Quantum AI

The most important snippet of text on the Quantum AI websites is to be found at the bottom of the pages, and it reads:

Important Risk Note:

Trading has its own advantages, but it comes with a risk of losing funds in full or partial amounts and must be taken into consideration by investors who are just beginning their journey. About 70 percent of investors are likely to lose money.

In order to avoid being one of the majority we are going to go over a few tips to help you get started in the CFD trading world and find a harmonious place in which to make wise decisions and avoid losing all of your stake and more with a highly leveraged, expired or misinformed trade.

First of all, let's just talk about leveraging. 

If you do not already know what leveraging is, leveraging is betting with other people's money, and they are going to want it back. If you are leveraging at 100 or 500x as some of these offshore CFD brokers offer, then you are in serious danger of losing your home! Leveraging is only for highly experienced, professional traders who are making a trade whilst other capital is tied up and they know they can cover any errors. Bearing Bank was destroyed by leveraging, and that was by a professional trader who thought he had it under control.

Tip 1 - Do not make a leveraged trade when you are a beginner, no matter what any 'personal advisor' is advising you to do.

Remember that a robot is only going by numbers and does not necessarily know how to interpret external influences upon a market.

When you are dealing with CFD brokers and you are within the US, UK, Israel or Canada, you are dealing with people who, by soliciting their products are breaking the law. CFD/option trading are outlawed in these countries because options/CFD trading is too complicated to begin with and too easy to lose money on very quickly and without a proper audit trail to understand exactly how you money has been lost.

What is the Difference Between Options Trading and CFD Trading?

Both options trading and CFD trading are derivative instruments, meaning their value is derived from the underlying asset they track, such as stocks, commodities, or currencies. However, they have some key differences:

Ownership:

  • Options: In options trading, you don't own the underlying asset. You purchase the right, but not the obligation, to buy or sell the asset at a specific price (strike price) by a certain date (expiry date).
  • CFDs: In CFD trading, you don't own the underlying asset either. Instead, you enter into a contract with a broker to exchange the difference in the price of the asset from when you open the contract until you close it.

Settlement:

  • Options: When an option expires in-the-money (for a call option, meaning the asset price is above the strike price; for a put option, meaning the asset price is below the strike price), you have the right to exercise the option and buy/sell the underlying asset at the strike price. If you choose not to exercise, the option expires and you lose the premium you paid.
  • CFDs: You don't physically buy or sell the underlying asset in CFD trading. Instead, you settle the difference in price between your entry and exit points with your broker in cash.

Leverage:

  • Options: Leverage is optional in options trading. You can buy options without using leverage by paying the full premium upfront. However, some options strategies involve leverage, amplifying both potential gains and losses.
  • CFDs: Most CFD brokers offer leverage, allowing you to control a larger position than your initial investment. This magnifies both potential profits and losses significantly.

Cost:

  • Options: You pay a premium upfront for the option contract, regardless of whether you exercise it or not. This premium reflects the time value and intrinsic value of the option.
  • CFDs: You don't pay an upfront premium in CFD trading. Instead, you pay spreads (the difference between the buy and sell price) and financing costs if you hold the position overnight.

Complexity:

  • Options: Options trading can be considered more complex than CFDs due to factors like time decay, implied volatility, and various strategies.
  • CFDs: While simpler in concept, CFDs still involve inherent risks like leverage and potential for significant losses.

Regulation:

  • Options: Options trading is regulated by financial authorities like the SEC in the US or FCA in the UK.
  • CFDs: CFD regulations vary globally, and some jurisdictions have restrictions on their use due to potential risks.

Choosing between options and CFDs:

The choice between options and CFDs depends on your individual goals, risk tolerance, and level of experience. Here are some considerations:

  • Options: May be suitable for directional bets, hedging existing positions, or generating income through selling options premiums. Requires understanding of options Greeks and strategies.
  • CFDs: May be suitable for short-term trading on price movements, but involve high leverage risks and potential for significant losses. Not recommended for beginners.

Tip 2: It's crucial to thoroughly research both options and CFDs, to understand the risks involved, and to consider seeking professional advice before engaging in either type of trading.

It is also important to understand the role of Bitcoin Robots and autotrading within the current financial climate. In the present day, the reality is less exciting than the theoretical possibilities.

As of February 2024, the practical applications of quantum computing for traders are extremely limited. While research and development are ongoing, here's why it's not a significant factor for most traders today:

1. Lack of accessible hardware: Existing quantum computers are not readily available or powerful enough for widespread use in financial markets. The technology is still in its infancy, with limited access and high costs.

2. Immature software and algorithms: While researchers are exploring potential applications, robust and reliable quantum algorithms specifically designed for trading are still under development.

3. Questionable impact on current models: Even if powerful quantum computers and algorithms emerged, the benefits for most everyday trading strategies remain unproven. It's unclear how much they could outperform existing quantitative models, especially considering real-world challenges like latency and data limitations.

4. Regulatory and security concerns: The integration of quantum computing into financial systems raises new regulatory and security concerns that need to be addressed before widespread adoption.

Therefore, for most traders today, focusing on traditional investment strategies, risk management practices, and fundamental analysis likely offers more value than speculating on the distant promises of quantum computing.

However, it's important to stay informed about advancements in the field, as quantum computing has the potential to reshape the financial landscape in the long run.

In summary, while the future holds exciting possibilities, quantum computing remains more of a theoretical promise than a practical tool for the majority of traders today.

Tip 3: Anyone talking about Quantum Computing and Trading is either a scammer or completely out of their mind.

As concerns AI, it is possible that a sufficiently trained AI model could make useful trades within certain parameters, but there are all sorts of reasons that this could be a bad idea. 

Firstly an AI, as they currently exist, is not really an AI at all, but a simulation of one. An AI can appear to understand what you are talking about, but it doesn't really understand, it just learns to fake it very convincingly. This would mean that a trading AI's most effective capability would be to convince you that it can trade sufficiently well, whether it can or not. Under certain conditions an AI might misinterpret market conditions and follow a very costly set of trades, particularly with option  trading or CFD trading. This could easily lead to a catastrophic loss on your behalf.

The other problem with AI trading is that you are placing your wealth at the hands of something that is not accountable for it's actions. It has no money to repay you, it has no reputation to protect, it doesn't even understand what that means. It is a trading model algorithm that can lose all of your money and have no memory of the affair or any understanding of the consequences. It can only pretend to. This is a not a suitable partner for autopilot trading by any means.

AI computing models, while not perfect or a guaranteed path to wealth, do offer several potential benefits for traders in the current financial climate:

1. Market Analysis and Trend Identification:

  • AI can analyze vast amounts of data, including historical prices, news sentiment, and social media trends, to identify patterns and potential future market movements.
  • This can help traders make more informed decisions about entry and exit points for trades, although past performance doesn't guarantee future results.

2. Algorithmic Trading:

  • AI-powered algorithms can automate trading strategies, reacting to market changes faster than humans and potentially taking advantage of short-term opportunities.
  • This can be beneficial for high-frequency trading or implementing specific strategies, but comes with its own set of risks and requires careful setup and monitoring.

3. Risk Management:

  • AI can analyze historical data and market conditions to assess potential risks associated with different investment options, helping traders build more balanced portfolios and manage risk exposure.
  • This can be especially helpful in volatile markets, but remember no model can predict the future perfectly.

4. Backtesting and Optimization:

  • AI can be used to test different trading strategies on historical data to see how they would have performed, helping traders optimize their approach.
  • This can be a valuable tool for refining existing strategies or exploring new ones, but past performance is not indicative of future results.

Important Caveats:

  • It's crucial to remember that AI models are not magic bullets. They require careful selection, configuration, and interpretation based on your specific goals and risk tolerance.
  • Overreliance on AI can be dangerous. Always do your own research, understand the limitations of the model, and never blindly follow its recommendations.
  • Beware of exaggerated claims and scams. Not all AI trading solutions are created equal, and some may be misleading or ineffective.

Overall, AI computing models can be a valuable tool for traders, but they should be used cautiously and strategically, in conjunction with other analytical methods and a thorough understanding of the financial markets.

Tip 4: Test the Broker Website Withdrawal Feature after depositing one dollar.

No matter what happens with trading, before you make any kind of serious deposit, you must have tested the withdrawal feature of your broker's website to ensure that the process is streamlined and competent. If you are having trouble with a broker, you need to know that you can get your money back at any time, without requests for passports, driving licenses, household bills and all the rest of it. 
When a boiler room scammer gets your money, they provide a fake trading interface that resembles MT4 screens. This is to stop you realising that you have lost everything as soon as it is deposited. The balance rises and you are persuaded to deposit more. Why not? The balance is growing. The problem is that the screen is just a fake under the control of the scammer. As soon as you ask to withdrawal you hit a run of bad luck and lose lots of huge trades in a row under the 'autopilot' system. The scammers keep asking for passports and driving licenses and proof of address and then there is a delay for international fees... ALWAYS TEST THE DEPOSIT FIRST NO MATTER WHAT YOU ARE DOING OR WHO THE TRADER IS!

Testing the withdrawal process before committing any significant funds is crucial to avoid falling victim to boiler room scams. Your experience and insights shed light on their manipulative tactics, and I am grateful for the opportunity to learn and improve.

Here are some key points based on people's experience that you must remember and integrate into my responses:

  • Fake trading interfaces: Boiler room scammers often use fabricated platforms that mimic legitimate platforms like MT4 to deceive victims.
  • Deceptive balance manipulation: They artificially inflate the account balance to lure victims into depositing more money.
  • Withdrawals denied or obstructed: When victims attempt to withdraw, scammers create obstacles and excuses, such as fake losses or fabricated fees.
  • Excessive documentation demands: Scammers might request excessive personal information to further delay withdrawals or make them impossible.

By incorporating this knowledge into my responses, I hope to better inform and protect users from these predatory schemes.

Here are some additional resources that you might find helpful:

Remember, if something sounds too good to be true, it undoubtedly is. Always research thoroughly, be wary of unsolicited investment offers, and never invest more than you can afford to lose!

If you can remember to stop and think about these points, you are far less likely to come a cropper when looking into partners for Quantum AI and CFD/options trading.

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