Is Daniel Loh’s Passive Income Mastery Program a Scam?
Since attending Daniel Loh's class in 2017, my experiences have left a bitter taste in my mouth. The supposed passive income mastery program turned out to be more of a financial nightmare than anything else. Recently, my 10k account was decimated, ending with a loss of over 14k in a single night. Add to that, the broker was not kind enough to waive off the 2k balance I owed, leaving me in an extremely negative financial position. Such a turn of events is disheartening especially when the CNY New Year is on the horizon, and there's no mood whatsoever to celebrate it.
High Winning Rate, High Risk
While Loh's program might have boasted about a high winning rate, the reality is that the losses can be far greater than your profits. This model is akin to becoming a lottery ticket owner where a small number of tickets win while a huge number lose. Imagine you're a lottery seller and someone wins the top prize, and you're on the hook for the payout. In Loh's strategy, we sell options, and if the trend goes contrary, we must still pay out.
On the day of the trade, the SP500 did not even drop by 10 points, yet we lost all our money. There's no need for the trade to be in-the-money (ITM), as Loh himself mentioned. Even when the advice was given, it almost always resulted in margin calls, forcing participants to top up funds or face a forced closure at a significant loss. For last year's batch, the majority of advice given by Loh was erroneous, with even the students who joined late not experiencing any winning trade but facing massive losses instead.
Questionable Past Performance and Real Results
The past performance and results mentioned by Loh seem overly rosy. When I consulted the records, they were dated long ago, with no recent results to reference. This makes one question the authenticity of the claimed achievements. Moreover, there is a significant gap between the high earnings reported in 2012-2014 and the current performance. Could it be that the traders who made a fortune back then have given up trading altogether, having suffered huge losses?
Don't fall into the trap of relying on these outdated benchmarks. Request Loh to provide the latest results from his students. If his former high-earning students have stopped trading altogether due to losses, there might be a sinister reason for this silence.
Further Cautions and Warnings
For those who haven't suffered massive losses yet, avoid investing in this program. Your hard-earned money will merely embellish someone else's account while you receive no help when problems arise. Loh might be the only one profiting from this scheme.
Additionally, Loh teaches on commodity and index options. Examples like Karen the Supertrader and James Cordier (OptionSellers) have raised serious doubts about their veracity. The SEC complaint against Karen Bruton looks suspiciously similar to the Madoff scandal. Moreover, the near-bankruptcy of James Cordier, who previously profited from high-risk options trading, is a stark warning.
Conclusion
For now, my advice is to stay away from Daniel Loh's passive income program. The risks are far greater than the rewards, and the past performance is far from consistent or reliable.
Related Queries to Explore:
Is Daniel Loh's program legit? What is the real story behind Karen the Supertrader? How reliable are the claims made by Loh? Have previous participants actually profited?