The Federal Trade Commission (FTC) stopped Warrior Trading and its CEO, Ross Cameron, from making false earnings claims regarding their day-trading strategies. The Commission ordered them to pay $3 million to harmed consumers.
Day-trading involves the rapid buying and selling of stocks within the day to take advantage of short-term price changes to make a profit. In most cases, day-traders buy and sell stocks using borrowed money or leveraged capital, hoping that they will make huge profits. However, they are also facing the risk of suffering big losses. Thus, it is extremely risky.
In a lawsuit, the FTC alleged that Warrior Trading and Cameron are using deceptive sales practices to convince consumers to spend hundreds and even thousands of dollars to buy their day-trading strategies, related courses, programs, workshops, and tools.
In their advertisements and promotional materials, the defendants claimed that their day-trading strategies are effective, proven, scalable, and profitable with an initial investment of $500. The defendants also claimed that consumers will be able to learn and execute the investment strategies consistently and profitably if they purchase and enroll in Warrior Trading’s courses, workshops, and programs.