Warrior Trading is another one of those online day trading communities that sell trading courses mainly targeted toward beginners. Ross Cameron the red-haired, scruffy looking dude behind the company and employs other mentors to teach different strategies for trading small cap stocks. It originally started out just as a blog back in 2012 and over the last five years has gone to become one of the most well-known live day trading chat rooms on the web. Clearly, he must be doing something right, but questions remain, is his service popular because he provides the best stock market education or is it because he’s a clever marketer. Personally, I think it could be a mix of both components but I am skeptical due to the abundance of fraudsters on the internet selling courses to schmucks and not showing verified profits or brokerage statements to back-up controversial claims.
Their mission is to create 50,000 full-time traders by 2020, this is a very ambitious statement but apparently, they have 500,000 members so it’s not as crazy as it sounds. I think they’ll be doing well to help 5,000 people quit their jobs and trade the markets full-time from home. According to a survey from 100 randomly selected graduates from the Warrior Pro group, a staggering 82% who completed the class ended up becoming profitable traders. This could be true or they could have purposely cherry picked their top graduates as an 82% success rate sounds far fetched.
Ross is the main guy and founder, he follows 3 simple strategies – gap and go, reversal and momentum. These are easy to learn and spot but that doesn’t make them easy to make money with. He employs two main instructors as he can’t teach 5,000 students all at once. Mike Herman trades news driven momentum stocks above $20 using technical analysis and market sentiment to gain an edge. Jeff Foster is a swing trader with 9 years experience, Jeff likes to play high volume momentum stocks with solid chart setups and is constantly testing new strategies to stay ahead. From reading other reviews from past customers these two guys have been highlighted as the best instructors to follow.
Warrior Trading Chat Room Overview
They have three different pricing options starting at $149 per month, $297 per quarter and $897 annually, bonuses are offered for those crazy people who decide to join on an annual basis. If you’re thinking of signing up, I recommend going through all their free content on Youtube as well as reading blog posts, you’ll need to pay to learn the more dense material. Also, they offer a 7 day free trial and you can use the coupon code “300OFF” to save $300.
The chatroom is very active with an average of 1,000 people on a daily basis, it’s composed of people with varying degrees of experience, from novice to veteran traders. It’s useful for beginners to follow the live market commentary from Ross to grasp a better understanding of the basics. Every morning a watch list is posted at 9:00 am, then at 12pm he provides a mid-day recap followed by a short Q&A session so everyone is up to speed. Due to the amount of activity in the chat-room, there are about a dozen moderators to help deal with the volume of questions. The most asked questions are always related to finding the best broker, FYI the top 3 penny stock brokers recommended are normally Trade Zero, SpeedTrader and Interactive Brokers.
The most important topics thought to new members are risk management, stock selection, chart patterns and Level 2. Risk management is the sole reason 90% of traders blow up their accounts, never place a trade unless the setup offers a favorable risk to reward ratio. Cameron reiterates a 2:1 profit loss ratio is key to success, in theory this sounds simple to adhere to but requires a lot of discipline. Once you understand risk management the next step is stock selection, it’s all about finding low float stocks between $1.50 to $10, moving 20-30% in a single day. Ross compiles a list of 3-5 volatile stocks that he expects will be hot on a certain day, he uses a scanner from trade-ideas.com to discover these setups. This scanner is super expensive and monthly plans cost $188 per month, very few members are starting off with small accounts so they won’t be able to afford this. The final piece of the jigsaw is chart patterns, some of the breakout chart patterns they teach include bull flags, flat tops, flat bottoms, bear flags and ascending + descending wedges. In addition, they also sell advanced online training classes to those more serious about investing in their education, Warrior Pro costs $4,299 and the exclusive Inner Circle fee is $9,997 per year.
Is Warrior Trading a Scam?
Calling Warrior Trading a scam is inaccurate but is a well-oiled marketing machine run by Ross whose main goal is to make money. The whole concept of quitting your job and having the freedom to travel the world by trading on your laptop by a beach is a major selling point in their sales pages. I can’t seem to escape his advertisements, Facebook ads promoting free e-books + pre-recorded webinars follow me around on every page I visit and for some strange reason, his YouTube videos appear in my recommended video list quite frequently. He must spend a fortune on paid ads, web designers and copywriters to achieve so much coverage. Also, I don’t really like the way he implements high-pressure sales tactics to persuade people to join his webinars that show how he made $100,000 in 45 days, they create a false sense of scarcity by claiming there are only limited places left when in reality unlimited spots available. It’s obviously a clever tactic used by other guru’s like Jason Bond and Investors Underground to increase revenue by motivating customers to take action instantly before the opportunity is removed, it’s not illegal but it’s kind of sketchy. Another thing I noticed is he has a good understanding of how to rank websites on Google and owns multiple one-page websites purely created to outrank webpages who talk negatively about his brand.
Despite all the controversial claims and click-bait headlines, Ross has actually posted proof on his blog to verify all of his profits for 2016 and 2017. Even though he is fully transparent and publicly shows his trades, haters will always doubt his success and want more proof. Haters dislike the fact how much he makes selling high-priced products and by now Ross has a net worth close to $4 million from his business.
Due to his success, Ross has had thousands of customers so it’s unlikely he’s able to please everyone, he can’t reply to every email as there are only 24 hours in a day. Just because he receives a few complaints it does not make him a scam but you should definitely take heed of the criticisms of his service. Luckily there are websites such as Trust Pilot and Investimonials where past customers leave reviews, always be skeptical of overly positive ratings as it’s common for gurus to encourage members to give them good ratings by giving away free bonuses and trials. Also, rivals and haters like to leave bad ratings to unfairly damage his reputation purely out of jealousy.
Ross Cameron vs Tim Sykes
Both guys have made millions selling educational courses, they have proved they can be profitable traders so they decided to become online entrepreneurs to monetize their knowledge of trading. It’s a lot easier and significantly less risky to make millions selling subscriptions than it is trading penny stocks. Tim Sykes was the original pioneer of selling educational material such as DVD’s and a newsletter for small cap stocks, his aggressive marketing and lavish lifestyle did not go unnoticed, Bloomberg even labelled him a “millionaire douche bag” in an article that attracted even more customers to his business. On the other hand, Ross is a chilled, laid-back person who doesn’t drive around in a Lamborghini for attention. He markets himself as an average Joe which appeals to a lot more people but clearly is an intelligent person so his results won’t be easily duplicated.
More than likely Timothy Sykes was a big inspiration for Cameron, he realized there are millions to be made as an entrepreneur and copied Sykes’ business model. If you look at both their websites, they are quite similar with banner ads of recent trading results, case studies of successful students and pop up ads asking your email address to continuously bombard you with emails. Once you leave their websites their re-marketing adverts follow you around until you give up and finally join. They both also cherry-pick successful students and heavily promote them, it would make no sense to profile members losing money but these testimonials are supposed to inspire new students but ultimately lead to new subscribers joining with unrealistic expectations. Most sign up thinking they can just copy their alerts and bank easy profits not realizing that penny stocks are volatile so you won’t receive the same entry and exit points. The problem is the majority of subscribers who join don’t possess the required traits to succeed and aren’t willing to put in the effort to become a consistently profitable trader, if you fail it’s entirely your own fault!