Ross Naylor                          +48 (22) 389 65 70 (w)                          +48 512 275 706 (m)                  ...
recently been purchased from a firm that supplies leads.Step 2   He spends his day on the telephone and proceeds t o call ...
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Issue26

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Issue 26 of Ross Naylor's Ezine - How share scams work.

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Issue26

  1. 1. Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 PolandHow Do They Do It?Have you ever been approached by someone from Asiatrying to sell you shares? They re good, aren t they? Verygood. Ever wondered how their tips always pay off (until youbuy them that is)? Here s how.Suppose some guy calls you on the telephone saying thathe is an investment advisor and that he wants to give yousome free share tips so that you can evaluate how good heis.Suppose he calls you once a month for six months andeach time gives you one stock to buy or sell that month andeach month his tip comes good when he told you to buythe stock he picked for that month, it went up and when hetold you to sell it went down.After six months, or maybe l ess, you might be willing to entrust some money to hi m to invest onyour behalf. It would be at this time you would likely find that the 100% t rack record does notcontinue.Let me explain how it is possible for someone to give investment advice with a 100% successratio for six consecutive months.Step 1 There is someone sitting somewhere with a telephone. He has a list of numbers that has
  2. 2. recently been purchased from a firm that supplies leads.Step 2 He spends his day on the telephone and proceeds t o call the people on his list. Let s sayhe spends about 10 minute on average with each potential client, which means he can call 6people per hour (that s 50 people a day, 250 people per week, 1,000 people per month).Step 3 So in the first month he calls his 1,000 people and tells 500 of them to buy a certainstock and 500 people to sell the same stock. One month later, the stock will either have gone upor down. Our man then calls only those 500 people to whom he gave the good advice to.Step 4 He then repeats this process for a second month w ith a different stock. Again, headvises 250 to buys and 250 to sell.Step 5 The third month he is down to 250 people who have now received good advice for twomonths in a row. And so it goes on, by the sixth month he has about 15 people left on his list whohave now received six correct investment recommendations on the bounce.Hey presto! That s how it works. As you can see, this is nothing more than a number s game.There is no magic formula being used or superior knowledge being provided.That s allfor today. As always, thanks for reading.I have heard from a number of people about receiving calls like this recently. Thankfully mostpeople treat it with a healthy pinch of salt. However, that is part of the numbers game. There arealways those that do not.Thats why its always important to bear in mind the old adage - if something seems too good tobe true... You know the rest.Have a great week.Ross. all e +48 (22) 389 65 70 (w) +48 512 275 706 (m)

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