The Pitfalls of Get Rich Quick Schemes

Oct 4, 2022 Written By LAT Staff

As living costs continue to rise, many people will be turning to a potential side hustle to supplement their income. In fact, a survey of more than 2,000 people by London Academy of Trading (LAT), the UK’s first accredited trading academy, shows that three in ten people (29%) admit they are interested in get rich quick schemes, while 16% are considering trading cryptocurrency.

However, people are more likely to turn to friends and family (24%) or YouTubers (20%) for educational material and advice, rather than putting their trust and faith in verified and accredited industry professionals (14%).

“Given how many online influencers are paid thousands to endorse products and projects they know little about, with many more lacking accreditation or legitimate references, it is worrying to learn that 25 percent of people say that they influence their trading decisions,” says Paddy Osborn, Academic Dean at the London Academy of Trading.

“That’s the same amount who say that trading signals do, or would, influence them and just less than those who trust traditional media sources such as the Financial Times at 33 percent. Now more than ever, it is important that people understand the risks when entering the world of trading, and despite their appealing nature, learn how to spot get quick rich schemes.”

This follows similar warnings from the Financial Conduct Authority (FCA) earlier this year amid fears that social media influencers are peddling crypto and forex trading as a way out of the cost-of-living crisis. Similarly, in March, the Advertising Standards Authority (ASA), rolled out rules to help prevent firms from creating a “fear of missing out” in relation to crypto prices in their advertising campaigns.

“It is not to say that there is no money to be made, or viable ways to boost income when needed most, but to reduce risk and avoid catastrophic confusion, its best to consult the professionals,” says Paddy Osborn.

This year, London Academy of Trading has won the “Most Outstanding Trading Courses Provider 2022 – UK,” the “London & South-East England Prestige Awards 2020” and “The Global 100.”

Next Steps

After learning about the risks involved in get rich quick schemes, it's vital that you learn the right skills and knowledge to profit and minimise your risks. Start developing your profitable trading strategy through a combination of fundamental analysis and technical analysis by enrolling on one of our award-winning, accredited trading courses.

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