Umar Ashraf Review: SCAM?

Umar Ashraf Review. SCAM?

Umar Ashraf review. 

Is Umar Ashraf a Scam and Fraud?

Watch this video below and learn my opinion:

Umar Ashraf is interesting because, in the past, I 100% believed that he was a fraud.

The reason is that it's simply not possible for retail day traders to be profitable.

Yes, I know that sounds crazy, but there are NO research studies that show that it's possible for retail day traders to consistently make money.

And...there are numerous research studies that indicate that virtually all retail day traders lose money, and those that don't end up earning less than minimum wage.

From a mathematical perspective, no retail day traders should make money since if you start out with $100 and then lose 10% then you need to earn back 11% just to get back to even. 

Additionally, there is significant friction when trading (fees, slippage, etc.) that make each trade significantly worse than a 50 / 50 proposition.

I'll post more information about this below, with the research, as I'm sure that many of you will disagree.

How does this apply to Umar Ashraf?

Well, Umar claims that he's a profitable day trader.

As mentioned below, the only way to be a profitable retail trader is by front-running your audience:

But, Umar Ashraf currently trades large capitalization stocks and indices like SPY and AMZN.

As a result, he's definitely NOT front-running his followers (which is a good thing).

He claims to make a ton of money by day trading SPY - which I believe is a lie.

Even so, I am unable to figure out HOW it's a lie.

His Trustpilot reviews for his past company, Stock Market Lab, are bad but...that's so minor. Perhaps he had a competitor leave him bad reviews? So I would take that with a grain of salt.

I also looked at TradeZella.com, and it seems harmless.

So... my overall thoughts about Umar Ashraf is that he is not transparent with his trading profits, but that he's used the money he earned from the past to attempt to transition into something a bit more legitimate (TradeZella.com).

Would I use TradeZella or trust that Umar Ashraf is a profitable trader? Definitely not.

But, there seems to be MANY WORSE people out there than Umar Ashraf.

Day Trading Studies and Conclusions

It has been proven in numerous scientific studies that day trading is a scam and day traders are fraud victims.

Check out these 2 day trading studies:


https://drive.google.com/open?id=1Tbd0vw8a-K0lxTF1nQ_dh-k6Qd0SDqsI

Day traders LOSE money (an average of 15% a year).

One study from Brazil compares day trading to gambling & playing roulette in a casino and indicates that buying day trading courses and gaining "experience" yields WORSE results.

97% of day traders lost EVERYTHING and only 0.4% earned more than MINIMUM wage.

When factoring in commissions, virtually EVERY trader lost money.

The actual results are WORSE since the study didn't factor in commissions, fees and trades held more than 1 day.

The other study from Taiwan indicates that only 500 out of 360,000 made money consistently.

359,000 out of 360,000 LOST money. 

The top 500 (out of 360,000!) made ONLY ~5% a year above simply holding an SPY index.

You could beat that by simply holding SPY and selling covered calls.

Day trading is a scam. Day traders are fraud victims.

The higher the frequency and shorter the duration of your trading, the higher the likelihood that you will LOSE EVERYTHING.

The Sao Paulo School of Economics commissioned a study that tracked a total of 19,646 day traders from 2013 through 2015. The data was broken down into bite-sized chunks to better understand the data.

The first group of day traders totaled 1,111 individuals that day traded only a single day. Of this group, 29.8% achieved a profit.

The second group of day traders totaled 9,978 individuals that day traded between 2 to 50 days. Of this group, 15.5% achieved a profit.

The third group of day traders totaled 3,100 individuals that day traded between 51 to 100 days. Of this group, 8.9% achieved a profit.

The fourth group of day traders totaled 2,738 individuals that day traded between 101 to 200 days. Of this group, 6.8% achieved a profit.

The fifth group of day traders totaled 1,168 individuals that day traded between 201 to 300 days. Of this group, 5.4% achieved a profit.

The sixth group of day traders totaled 1,151 individuals that day traded greater than 300 days. Of this group, 3.0% achieved a profit.

What does this data suggest? 

Ironically, the data suggests that the odds of achieving day trading success is nearly identical to playing roulette at a casino. 

The more you play, the greater the likelihood that you will lose everything.

The social scientists were particularly surprised to discover that ‘learning’ played nearly no part in the results. 

For instance, it was assumed that if a person had traded 6-months and 200+ trades, that they would learn to trade better or improve upon their trading strategies to achieve greater success because they were “learning from experience.”

And this is just what the trading educators want us to believe…that we need to “learn” and over time, this “learning” will improve our results. 

But the data absolutely destroyed these assumptions. In fact, the more a person “learned” to trade, the worse their performance became. 

It seems like “practice makes perfect” does not work in day trading Futures markets.

We all know that some folks, through luck or skill, are going to achieve success.

These "successful" traders are so small in number that it's referred to as statistical noise and is usually IGNORED (for example, one major winning trade and then the trader radically reduces their size). 

Let’s take a look at those figures now…

The first group of successful day traders totaled 17 individuals that earned an average of $16 per day.

The second group of successful day traders totaled 8 individuals that earned an average of $54 per day.

The third group of successful day traders totaled 1 individual that earned an average of $310 per day.

But here is the sad part…of these successful Futures day traders, the standard deviation of their daily profit ranged from $632 to $3,308. 

What does that mean? 

In other words, in order to consistently earn $80 per day, you would also have to experience massive daily fluctuations of between $632 and $3,308.

And based upon the data, only one person was able to earn more than a minimum wage job.

For those 1,151 day traders that persisted 300 days, 97% lost all of their money once commission was factored in.

Even the highest performing trader that earned an average of $310 per day ended up barely profitable once the commissions were factored in.

How sad are these numbers?

In conclusion, the study stated that “It is virtually impossible for an individual to day trade for a living, contrary to what the brokerage specialists and course providers often claim.”

Conclusion: Umar Ashraf Review

In my opinion, I don't believe Umar Ashraf is a profitable trader, and I also believe that, in the past, he would sell worthless courses - however, at this time, TradeZella.com doesn't seem to be a scam.

Would I recommend Umar Ashraf? Definitely not.

But, compared to other day trading fake gurus, he doesn't seem nearly as bad.

By trading large capitalization stocks and indices, and not penny stocks, that, by default, makes him less harmful than those penny stock day trading fake gurus.

I would still recommend proceeding with caution though because virtually all retail day traders lose money.

Frequently Asked Questions (FAQs)

Umar Ashraf net worth?

I would estimate Umar Ashraf's net worth to be around $15 million USD.

Is Umar Ashraf a scam artist?

In my opinion, I believe that there are many worse people than Umar Ashraf.

I don't believe that he's a profitable day trader.

I also don't believe that any of his followers will make money.

But he also doesn't front-run his followers and I'm unable to find out how he's showing large day trading gains (which I'm 99.999% confident are not legitimate).

Even so, his current endeavor, TradeZella.com, seems relatively harmless - although I've read complaints about TradeZella charging customers even after they've cancelled, which can get TradeZella in trouble with the FTC.

Umar Ashraf TradeZella review

TradeZella is a journaling and analytics tools that is supposed to help improve your trading.

Personally, I think it's worthless, but I also don't think that it's harmful.

About the Author David Jaffee

I (David Jaffee) help people become consistently profitable traders while minimizing risk. I graduated from an Ivy League University and worked at some of Wall Street's most successful investment banks. Subscribe to my YouTube channel for valuable videos - BestStockStrategy YouTube Channel​. Finally, if you're looking to Land a Finance Job, then I've put together the best step-by-step course at LandaFinanceJob.com. My personal website is DavidJaffee.com.

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