Reacting to Ross Cameron’s Momentum Trading Strategy (Is He Legit?) — Transcript

Full transcript

1. 0:00Warrior Trading, aka Ross Cameron, is
2. 0:02one of the biggest names in the space,
3. 0:05and you asked me if he's legit. Ross
4. 0:07uses a specific momentum trading
5. 0:09strategy that he claims has made him
6. 0:11millions. But, and this is a huge but, I
7. 0:15believe there is a massive disclaimer
8. 0:17you need to be aware of regarding his
9. 0:19so-called trading profits, and it isn't
10. 0:22just his FTC lawsuit. I'm Lance, and
11. 0:24after making over a hundred million
12. 0:26dollars trading on Wall Street, I'm done
13. 0:28trading my health for wealth. And now,
14. 0:30[music]
15. 0:30I feel that it's my responsibility to be
16. 0:33the voice of reason in the trading
17. 0:34education space full of fake gurus
18. 0:37promising you [music] fast profits. I
19. 0:39spent dozens of hours watching Ross's
20. 0:41videos, and I even put on sunglasses
21. 0:43[music] and a mustache to go incognito
22. 0:46and observe his paid chat room. The
23. 0:48things I'm willing to do for audience
24. 0:50requests. Hey, don't get any weird
25. 0:52ideas, you sickos. So first, who is Ross
26. 0:56Cameron? On his own site, Ross says he
27. 0:58grew up in Vermont and first
28. 1:00in stocks during the dot-com era. He
29. 1:02opened his first Ameritrade account in
30. 1:042001 while still in high school, studied
31. 1:07architecture and in New York at a design
32. 1:09firm before finally going full-time into
33. 1:12trading. He founded Warrior Trading in
34. 1:142012 as what began as the Day Trade
35. 1:18Warrior blog. Well, I was in the early
36. 1:19days of my trading career at Trillium.
37. 1:21At that time, I had no idea who he was
38. 1:24until over a decade later once I started
39. 1:26spending more time on the retail trading
40. 1:28side of things. Ross's trading style is
41. 1:31pretty clear and specific. He is
42. 1:32fundamentally a small-cap momentum day
43. 1:35trader, mostly looking for intraday
44. 1:37continuation. He says he only wants to
45. 1:40trade stocks making extreme moves
46. 1:42because that is where the most edge is.
47. 1:44Using scanners, he is searching for
48. 1:46floats under a hundred million shares,
49. 1:48strong daily charts, high relative
50. 1:50volume, and some catalysts such as
51. 1:52earnings, an FDA announcement, or other
52. 1:54breaking news. He also says the daily
53. 1:57list is usually tiny after he screens
54. 1:59the market, which fits the way momentum
55. 2:01traders narrow their universe to a
56. 2:03handful of in-play names rather than
57. 2:05trading everything. So far, all good.
58. 2:08Essentially, he's focusing on small cap
59. 2:10stocks that are in play due to high
60. 2:12volume, large ranges, and ideally a
61. 2:15breaking news catalyst. All of that I
62. 2:17full-heartedly endorse. All of this fits
63. 2:20into the criteria that I also look for
64. 2:22when finding edge in the market, which I
65. 2:24get into in my broken slot machine
66. 2:26concept video. It's linked below.
67. 2:28Particularly in the small cap space,
68. 2:29it's generally far safer to focus on
69. 2:32continuation longs going with the trend
70. 2:34rather than trying to focus on shorting
71. 2:37them. Statistically, yes, these do tend
72. 2:40to mean revert and come back to Earth.
73. 2:42But in doing so, many traders blow up on
74. 2:45the stocks that end up going up hundreds
75. 2:47or even thousands of percents higher.
76. 2:50Momentum trading of in-play micro cap
77. 2:52stocks is absolutely a viable strategy,
78. 2:55and I did myself a considerable amount
79. 2:58of trading that style while at Trillium.
80. 3:00I eventually stopped doing this though
81. 3:02because I started to face scalability
82. 3:04issues in these smaller cap names. You
83. 3:06can only put so much capital behind a
84. 3:08name that might only trade a few million
85. 3:10shares per day while trading for a low
86. 3:12share price. The other part I love about
87. 3:14what Ross is doing is he uses tech to
88. 3:17help find more of his best setups.
89. 3:19Especially in this modern day of vibe
90. 3:21coding, you absolutely need to be using
91. 3:23filters and scanners to find more of
92. 3:26your best setups. It is inexcusable to
93. 3:28miss an A+ setup for your trading style.
94. 3:31So, he does a great job of using that
95. 3:33tech to build a morning watch list each
96. 3:35day. Like I said, so far, so good.
97. 3:38Another important sign to identify real
98. 3:40traders is whether they are transparent
99. 3:42about losses and their risk management.
100. 3:44So, let's hear what Ross has to say
101. 3:45about some of his P&L giveback rules.
102. 3:47>> I am pleasantly surprised, bordering on
103. 3:50shocked, to have such a nice green day
104. 3:53here. I'm currently sitting up
105. 3:55$52,503.87.
106. 4:00Phenomenal. I peaked at 72,000 on the
107. 4:03day. So, I gave back about a third of my
108. 4:05profit. And in a way, to give back
109. 4:07$20,000
110. 4:10I mean, that's a lot of money to give
111. 4:11back considering I wasn't even up 20,000
112. 4:13on the month coming into today. So, I
113. 4:16just gave back more in those last few
114. 4:18trades than I've made in the last like
115. 4:20week and a half. But, today the market
116. 4:23was hot. And you know what? I had
117. 4:24several opportunities today to walk
118. 4:27away. I could have walked away when I
119. 4:28was up $15,000. That was a green day,
120. 4:31three times the cold market goal. I kept
121. 4:33trading. Then I was up 25,000. Could
122. 4:35have walked away then. Then I was up
123. 4:3732,000 on the day. Could have walked
124. 4:39away then, but I didn't. I then took a a
125. 4:41$6,000 loss and was up 27,000 on the
126. 4:45day. Made a $5,000 loss. I could have
127. 4:47walked away then. I didn't. I stuck
128. 4:49around. I kept waiting for good quality
129. 4:51trades. And then I rallied all the way
130. 4:54up to 45, 55, 65, 72,000. Gave back 10
131. 4:57grand off the top real quick to 61. Gave
132. 5:00back another 10 grand to 51, 52. And I
133. 5:02said, "That's it." At that point, I'm
134. 5:04done. And so, I feel like
135. 5:08this is really important. There was a
136. 5:09comment, uh, I think it was yesterday or
137. 5:11maybe the day before, uh, the day that I
138. 5:13was up like 25,000 and finished up only
139. 5:16about 7 or 8,000, uh, that I I had
140. 5:19pushed it too hard. And I said, "You
141. 5:20know, on the one hand, you're right." He
142. 5:21said, "Yeah, look, you were up $20,000.
143. 5:23Why don't you just take that and walk
144. 5:24away?" I don't like to cap my green
145. 5:26days. I want to cap my red days. I have
146. 5:29to cap my loss days. But, I don't want
147. 5:31to cap my green days because what about
148. 5:33days like today where, you know, if I'm
149. 5:35just willing to dig deep and trade a
150. 5:36little longer, I end up tripling or
151. 5:39quadrupling, whatever it might be, my
152. 5:41daily goal. Okay, I actually love a lot
153. 5:44of this. For starters, Ross recognizes
154. 5:47that when your market is hot and the
155. 5:49opportunities are there, you need to
156. 5:51press on the gas. This touches on my
157. 5:53concept of exponential bet sizing. It
158. 5:55sounds like he had a really slow month
159. 5:57prior to this day and had his foot off
160. 6:00the gas. But then was immediately able
161. 6:02to turn it on because he recognized it
162. 6:04was the day to go for it. This is so
163. 6:06critical as you scale and grow as a
164. 6:08trader. Next, he discusses how even
165. 6:10though he was up a bunch of money and
166. 6:12having a good day, he kept on pressing
167. 6:14because the opportunities were there.
168. 6:16Bingo. We never ever want to hit a P&L
169. 6:19target and call it a day. The reality is
170. 6:22that in trading, our best trading days
171. 6:24will make up a crazy outsized portion of
172. 6:27our annual P&L. You never ever want to
173. 6:30cut off the asymmetry of your winning
174. 6:32days. You do want to cut off the
175. 6:34asymmetry of your bad days. And he says
176. 6:37exactly that, which is the point of
177. 6:39having a daily loss limit. He goes on to
178. 6:41mention how as he started to give back
179. 6:43P&L, usually around 30% off his highs,
180. 6:46is when he will turn it off and call it
181. 6:47a day. So in general, this isn't a bad
182. 6:50idea and I've done similar before. As
183. 6:52part of my daily report card, which I
184. 6:53discuss in this video, I've mentioned
185. 6:55the idea of having P&L giveback rules.
186. 6:58The benefit of this is most traders will
187. 7:00do well off the open. Then they feel
188. 7:01like they are playing with house money
189. 7:03and squander that P&L away over the
190. 7:05course of the day when the opportunities
191. 7:07might have slowed and become more
192. 7:09limited. So overall, yes, yes, yes, yes.
193. 7:13>> Yes.
194. 7:13>> Yes.
195. 7:14>> SAY IT AGAIN.
196. 7:15>> YES.
197. 7:16>> The only exception is I never like fully
198. 7:19calling it a day because in trading
199. 7:20anything can happen at any moment. If
200. 7:22the market is open and I haven't hit a
201. 7:24daily risk limit, my butt is generally
202. 7:27in the seat. As part of my daily report
203. 7:29card, I will have giveback rules. For
204. 7:31example, if I am up 100K and the
205. 7:33opportunities are slowing, I might only
206. 7:35be willing to give back 25K of those
207. 7:37profits rather than go all the way back
208. 7:40negative to my normal daily loss limit.
209. 7:43If I hit a give back rule, I will then
210. 7:45be hands-off unless something truly
211. 7:47exceptional happens. Because I recognize
212. 7:49that sometimes incredible opportunities
213. 7:51can make your year when you least expect
214. 7:54it. Now, onto the next clip.
215. 7:55>> And this right here is the hardest part
216. 7:58of being a trader. When you get into
217. 8:00these cycles of two steps forward, two
218. 8:02steps back.
219. 8:03So, Thursday was red 10,000, rounding
220. 8:06up.
221. 8:07Then 5,000 in the green on Friday, 5,000
222. 8:10in the green on Monday.
223. 8:12Two steps forward, and now today, boom,
224. 8:15right back to where I was on Thursday. I
225. 8:18gave back everything I made in the last
226. 8:19two days. That's discouraging. That's
227. 8:21frustrating.
228. 8:23Right? That There's There's no I think
229. 8:25that's pretty safe to say. That's a
230. 8:26frustrating experience to spend two days
231. 8:29chipping away, coming down, you know,
232. 8:32into my office, getting up early,
233. 8:33sitting down, trading, and then coming
234. 8:35up short with nothing.
235. 8:37So, that's a frustrating experience.
236. 8:39Now, how do you respond to that
237. 8:41frustration?
238. 8:42>> A couple nice things here. I love that
239. 8:44he is openly discussing his losing
240. 8:45trades. And he is speaking about a point
241. 8:48that I'm sure his audience can very much
242. 8:50relate to, as we all can as traders.
243. 8:52Sometimes you work your damn ass off
244. 8:55only to go one step forward and give it
245. 8:57all back the next day. Or sometimes you
246. 8:59are just losing again and again. It
247. 9:01feels like you're moving backwards and
248. 9:03getting worse. Rightfully so, this is a
249. 9:06part of the job, and what matters most
250. 9:08is how you respond and handle it. Let's
251. 9:10hear how he does so.
252. 9:12>> When I get kicked off the horse, I kind
253. 9:14of jump back on. Like, all right, you
254. 9:16you try to show me, I'll show you.
255. 9:19What's that mean? Jump into a second
256. 9:21trade.
257. 9:22And I did. I took a second trade. Not
258. 9:23immediately, but I did take a second
259. 9:25trade.
260. 9:26I get kicked off again. I lose on the
261. 9:28second trade. Now, I'm red on two
262. 9:29stocks.
263. 9:31Ooh. All right, now you start getting a
264. 9:33little Now, you know, this is when
265. 9:35you're kind of
266. 9:37grasping at straws. It's not looking
267. 9:39good. So, do I take a third trade? I
268. 9:41take a third trade, I jump into
269. 9:42something and get smoked again? Now, I'm
270. 9:44red on three out of three stocks. Where
271. 9:45do I Where do you draw the line? Three
272. 9:47strikes, you're out. It's baseball, you
273. 9:49know, but
274. 9:50why why even go for three? Why not just
275. 9:52cut it at two? Like, at a certain point,
276. 9:55I think it makes sense to accept defeat.
277. 9:57So,
278. 9:59the problem is, in the face of
279. 10:00frustration and disappointment, it's
280. 10:02very easy to continue trading, and you
281. 10:06start spiraling. Because the feeling of
282. 10:08that disappoint that feeling of that
283. 10:10frustration I'll turn on my whiteboard
284. 10:11here.
285. 10:12The feeling of the frustration is so
286. 10:14strong, you don't want to feel
287. 10:14frustrated anymore. And so, the best way
288. 10:16to alleviate that frustrated feeling,
289. 10:18well, where's it coming from? The fact
290. 10:20that I'm red $12,000. So, if I can make
291. 10:2212,000, I won't feel frustrated anymore.
292. 10:25So, now, that's only 20 cents on a
293. 10:2660,000 share position, you guys.
294. 10:29So, 60,000 shares, the next stock I see,
295. 10:32I'm either making 20 cents and I'm
296. 10:34back to flat on the day, or I'm losing.
297. 10:37I mean, think about it. 60,000 shares,
298. 10:40you lose 5 10 cents maybe on slippage
299. 10:42getting in, another 5 10 cents on
300. 10:44slippage getting out. Next thing you
301. 10:45know, I'm down 25,000 on the day.
302. 10:47And actually, statistically, I have an
303. 10:4980% chance of doubling my loss after I
304. 10:53go below max loss.
305. 10:54>> That mentality of striving to make the
306. 10:56first losing trade's loss back and
307. 10:58taking another trade to alleviate the
308. 11:00pain of being negative on the day is
309. 11:02real. And his awareness of that inner
310. 11:04dialogue is so important. This is not
311. 11:07generally the type of commentary you get
312. 11:09from trader frauds. This comes only from
313. 11:11having gone through these shitty phases.
314. 11:14Even better is the fact that Ross has
315. 11:16studied his trading data to learn when
316. 11:19he is most likely to spiral. Traders
317. 11:21will often study their charts, but they
318. 11:23fail to study the data of their own
319. 11:25trading and miss a ton of key insights
320. 11:28like this in the process. Another great
321. 11:30part in that clip is where he discussed
322. 11:32his reading of the tape and recognizing
323. 11:34that his buy orders were getting filled
324. 11:36easily on hidden sellers, yet when it
325. 11:39came to sell, there was nothing there to
326. 11:41absorb what he was just able to buy. In
327. 11:43his niche of small caps, the ability to
328. 11:46read the tape like this and recognize
329. 11:48discrepancies between buyers and sellers
330. 11:50is so critical. I also really love the
331. 11:53part where he mentions having a rough
332. 11:55daily loss limit that is equal to what
333. 11:57he can make on one good day.
334. 12:00>> I don't really have
335. 12:01at this point a very hard set max loss
336. 12:05on my account of where I have to stop. I
337. 12:07generally say that I don't want to lose
338. 12:09more than I can make in one good day.
339. 12:12Because when you lose more than you can
340. 12:13than you make in on your
341. 12:15on your typical day, it's that's where I
342. 12:18personally get really triggered and I
343. 12:19get really frustrated.
344. 12:20>> In day trading world, that is a very
345. 12:22reasonable loss limit for an experienced
346. 12:24trader. Particularly as he says that he
347. 12:27knows himself and that exceeding that
348. 12:29amount triggers him psychologically.
349. 12:31This is really, really good stuff. It is
350. 12:34clear to me that he has done the
351. 12:36reflections necessary to know his
352. 12:38trading style and to know himself. Would
353. 12:40I recommend that he have at least some
354. 12:42form of hard-coded daily loss limit?
355. 12:44Absolutely. Every single trader should
356. 12:47have some type of hard-coded loss limit
357. 12:49just in case. Because when we are at our
358. 12:52worst, we can spiral and one bad day can
359. 12:55ruin a decade-long career. So, let's
360. 12:58pause here for a moment. Based on all
361. 13:00the content I've shown thus far, I have
362. 13:03nothing but glowing commentary to say.
363. 13:05I'll be honest with you. I was actually
364. 13:08quite pleasantly surprised by the videos
365. 13:10I was watching. It truly is high-quality
366. 13:13content that I think many could learn a
367. 13:14ton from. Value add, well-paced,
368. 13:18real-world advice. I can say with an
369. 13:20extremely high level of confidence that
370. 13:22Ross is genuinely doing the trading and
371. 13:24he knows his small-cap momentum niche.
372. 13:27Considering what a total cesspool this
373. 13:29industry is, that is pretty much about
374. 13:31as good of a review as I would give
375. 13:33someone. That being said, those of you
376. 13:35might recall from the beginning of my
377. 13:36video that there is a big disclaimer.
378. 13:39And no, that was not just watch bait. So
379. 13:42now, let's dive into it because this
380. 13:44dark side is critically important.
381. 13:47Ross's transparency is exceptional, and
382. 13:49I do think he has made over $10 million
383. 13:52in trading profits. Relative to most
384. 13:54internet trading educators, Ross has put
385. 13:57far more public documentation around his
386. 13:59own results than the typical guru. His
387. 14:01website explicitly says he continues to
388. 14:04make broker statements available for
389. 14:05public review, and the verified earnings
390. 14:07page references an independent
391. 14:09accountant's report. This is especially
392. 14:11important after his prior FTC fine for
393. 14:13some of his marketing, which from my
394. 14:15understanding of the case wasn't really
395. 14:17so crazy out of pocket. It wasn't that
396. 14:20big of a deal. That said, after a fine
397. 14:22like he received, you would have to be
398. 14:24out of your mind to totally lie about
399. 14:27these statements and publish fraudulent
400. 14:28claims when you already have a massive
401. 14:31target on your back. So yes, I
402. 14:33absolutely think his trading is real.
403. 14:36Now, onto the butt. The more interesting
404. 14:39critique is also the harder one. Ross
405. 14:42clearly knows trading. He clearly
406. 14:44understands momentum, and he clearly is
407. 14:47genuinely placing the trades. He has
408. 14:49more real receipts than most of the
409. 14:51internet's trading clowns combined. On
410. 14:53that basis alone, yes, he is transparent
411. 14:55in a way that most trading influencers
412. 14:57are not. But here's where the
413. 14:58conversation gets much more nuanced and
414. 15:00much more important. Ross is live
415. 15:03streaming his trading to thousands of
416. 15:05traders in his chat room daily. On one
417. 15:07hand, that looks like transparency. At
418. 15:10the same time though, that also creates
419. 15:12a massive conflict of interest in that
420. 15:14traders in his community are
421. 15:16piggybacking off of his live trades.
422. 15:18When you are trading microcap stocks,
423. 15:21this can have very real impacts on the
424. 15:23price movement. Imagine if every time
425. 15:25you bought a stock, people bought 10
426. 15:27times your size after you. It is the
427. 15:30same exact price dynamic of a pump and
428. 15:32dump scheme. This is exactly what Zack
429. 15:35Morris, a famous stock pump and dumper
430. 15:37from the COVID era, and others in the
431. 15:39past have been prosecuted for. So look,
432. 15:41I am not accusing Ross Cameron of any
433. 15:44pumping and dumping, but I do think when
434. 15:46he enters a trade, he's doing it on its
435. 15:49own merits and all of it is legal. But I
436. 15:51also strongly believe he is a massive
437. 15:53tailwind when he does so because of his
438. 15:55thousands of chat room members, some of
439. 15:57whom piggyback him into the trade. This
440. 15:59is especially problematic when these
441. 16:01small cap momentum markets are really
442. 16:03hot. In hot markets, participants are
443. 16:05eager to chase into small cap momentum
444. 16:07names, and coupled with very thin
445. 16:09floats, some of these names can go
446. 16:11hundreds or even thousands of percents
447. 16:13higher. It can make a huge difference
448. 16:16because even traders not following Ross
449. 16:19will pile in on high volume breakouts.
450. 16:21So essentially, Ross has the ability to
451. 16:23light the spark, his chat room provides
452. 16:25the gasoline for the move, then in times
453. 16:28of hot markets, the rest of the world is
454. 16:30the rocket fuel. And that is the heart
455. 16:32of my issue. My issue is not whether
456. 16:33Ross places the trades or whether he
457. 16:35knows how to trade or whether he is more
458. 16:37transparent than the average guru. He
459. 16:39clearly is. My issue is that once you
460. 16:42combine a legitimate momentum trader
461. 16:44with a giant live audience in a niche
462. 16:47that is already reflexive, thin, and
463. 16:50crowded, especially one that is often
464. 16:52entering these trades premarket when
465. 16:54they are most easily influenced, you
466. 16:57create a structural advantage that
467. 16:59public broker statements do not fully
468. 17:01explain. That advantage is not illegal.
469. 17:05It may not be explicit manipulation. It
470. 17:08honestly isn't even his fault that he
471. 17:10developed such a big following, and if
472. 17:11that has always been your product
473. 17:13offering, should he really have to cut
474. 17:15off the live trading? It is a judgment
475. 17:17call that I would imagine very few
476. 17:18people would say no to. In my opinion
477. 17:21though, it absolutely does muddy the
478. 17:23waters when you try to evaluate how much
479. 17:25of his P&L comes from pure stand-alone
480. 17:28trading skill versus how much comes from
481. 17:30being the person who buys first while
482. 17:33thousands of people are watching the
483. 17:34tape and scrambling to join him after.
484. 17:37For many of the larger live trading
485. 17:39influencers, you end up with the
486. 17:40following of traders that look to
487. 17:42piggyback you, but they get worse
488. 17:44entries and exits. Rather than learning
489. 17:46properly, they are trying to make a
490. 17:48quick buck by the piggybacking. I'm sure
491. 17:50this isn't most of his audience, but I'd
492. 17:52also bet anything that is definitely
493. 17:54some of them. And for that exact reason,
494. 17:56I do not find this piggybacking ethical
495. 17:59and I never share any of my own trading
496. 18:01that could influence the position. Once
497. 18:03you are the front man of a giant
498. 18:05real-time microcap chat room, you have
499. 18:08to at least ask the adult question. In a
500. 18:10stock with low float and extreme
501. 18:12intraday momentum, what is the value of
502. 18:14being first, being visible, and being
503. 18:16copied? My answer is a lot, potentially
504. 18:19a whole lot. Maybe not every day, maybe
505. 18:22not in every trade, but enough that I
506. 18:24would never be comfortable judging the
507. 18:26raw trading record as if it were
508. 18:27generated in a vacuum. Even if you are
509. 18:29not intentionally trying to exploit
510. 18:31that, even if you're just trading your
511. 18:33system honestly, the structure itself
512. 18:35creates a massive cushion in your
513. 18:37trading. The audience knows what you're
514. 18:39watching. They know your style, they
515. 18:41know your preferred setups. They see
516. 18:43your fills in real-time. In hot
517. 18:45small-cap conditions, that is not a
518. 18:47trivial detail. That is an inherent part
519. 18:50of the market microstructure. And before
520. 18:52somebody says, "Well, that's just the
521. 18:54cost of teaching live." I get that
522. 18:56argument. There is some truth there, and
523. 18:57again, I'm not saying I even fault Ross
524. 18:59for this. But if you build a business
525. 19:01around live trading small caps in front
526. 19:03of thousands of traders, then the fair
527. 19:05critique is that your educational model
528. 19:08and your trading results are not cleanly
529. 19:10separable. They bleed into each other.
530. 19:12The room helps sell the education and
531. 19:14the education audience may also help the
532. 19:16room leader in ways that are difficult
533. 19:18to measure. And that's the piece I think
534. 19:20that gets glossed over when people say,
535. 19:22"Well, Ross posted statement, so case
536. 19:24closed." No, case not closed. The
537. 19:27statements close one debate and open
538. 19:29another. They go a long way toward
539. 19:31showing the trades are real. That
540. 19:32matters. I give him full credit for
541. 19:34that. Most gurus will not get that far,
542. 19:36but it does not answer the more
543. 19:38interesting question, which is whether
544. 19:40those returns would look the same if
545. 19:42Ross were quietly trading the same
546. 19:44strategies with no camera, no chat room,
547. 19:47no alert system, and no audience piling
548. 19:50into the same names after him. And I
549. 19:51want to stay very disciplined here
550. 19:53because this is where reaction videos
551. 19:54can get sloppy. It's easy to slide from
552. 19:56a fair critique into making accusations
553. 19:59that I cannot prove. I cannot, nor can
554. 20:01anyone, easily prove what percentage of
555. 20:04his profits come from his audience
556. 20:05chasing him after him. That being said,
557. 20:07it is my personal belief that the
558. 20:09tailwind is very much significant to his
559. 20:12P&L. I would not be surprised if the
560. 20:14tailwind is responsible for a majority
561. 20:16of his trading profits. I spoke about
562. 20:18Ross's trading performance and this
563. 20:19issue with four unrelated senior traders
564. 20:22in the chat room space, each with over a
565. 20:24decade of trading experience and each
566. 20:26running their own trading communities.
567. 20:28And they have been a part of Ross
568. 20:29Cameron's trading community at points in
569. 20:31their career. Every single one of them
570. 20:33said they believe that the majority of
571. 20:36Ross Cameron's profits come from his
572. 20:38followers piggybacking his trades. Two
573. 20:41of the four traders I spoke with went as
574. 20:43far as saying they confidently believe
575. 20:45Ross would not be profitable were it not
576. 20:48for his chat room tailwind. Wow, that is
577. 20:51a big statement. So, where do I land? I
578. 20:53land somewhere in the middle. Ross is
579. 20:55absolutely not in the same bucket as the
580. 20:57worst trading frauds. He absolutely is a
581. 21:00real trader with a decade of real
582. 21:02experience. His understanding of the
583. 21:03micro cap space, reading the tape, and
584. 21:06his own trading habits are clearly real.
585. 21:08His transparency on providing statements
586. 21:10deserves recognition. At the same time,
587. 21:12I think it's totally fair to question
588. 21:14the purity of the record and put a
589. 21:16disclaimer on his profits in this
590. 21:17specific case. The same way that Mark
591. 21:19McGuire and Barry Bonds had the steroids
592. 21:21asterisk. In plain English, Ross may be
593. 21:24a very good trader, but also maybe not
594. 21:27since he is not trading under laboratory
595. 21:29conditions. I totally think his
596. 21:31following has a lot to learn from him,
597. 21:33especially if you're beginner. His
598. 21:35content's great, but as a consumer, you
599. 21:37need to question how transferable that
600. 21:40edge is to you as the audience, and also
601. 21:43how transferable that edge is outside of
602. 21:45the market of microcaps. And maybe the
603. 21:47biggest lesson for beginner traders is
604. 21:49this. Even when someone is legitimate,
605. 21:51that does not automatically mean their
606. 21:53edge is clearly replicable by you. Yes,
607. 21:56you can still learn from them, and I do
608. 21:58genuinely love his content. It does
609. 22:01provide real learning lessons. It was
610. 22:03entertaining and had awesome pacing. At
611. 22:05the end of the day, the trading
612. 22:06influencer industry is always buyer
613. 22:08beware. There are minimal rules or
614. 22:10regulations. So, you as a consumer need
615. 22:13to do your due diligence and find the
616. 22:15teacher that is right for you. If you
617. 22:17found value in this reaction piece, hit
618. 22:19that subscribe button and let me know
619. 22:21who you want me to analyze next. I try
620. 22:23and always tell it like it is, no
621. 22:25holding back the punches. Thank you for
622. 22:27watching, and I'll see you in the next
623. 22:29one.