David Fredericks chat service is a Scam. Back in July 2009, I subscribed to this service because the website sounded. It was too good to be true because the fraudster (David Fredericks) claimed that he can guarantee 88% trading success. Greedy to make that kind of money, I wanted to try the 7-day trial for $7-8. Having seen him trade, I thought he was good enough (because I was a rookie) for me to follow. Everyday he made about 5-8 trades. Don't get me wrong, initially, some were winning and of course there were losers. As soon as the trade goes against you, he will ask you to hold overnight (so much for day trading). My 7 day trial ended and I started to trade with him (was paper trading earlier).

Here's what happened after I paid my initial $249 subscription (which as supposed to be refunded by the way):

He continued to misread the market and asked you to hold for days (especially short positions when the ENTIRE market was bullish). At any given time, I had more than 2 short positions making $500/$1000 of losses per day. I had to get rid of other positions just to maintain buying power even with his adamant advice to hold them.

His chatroom only had about 4-5 people in it (no wonder). Whenever he screws up (which was almost all the time), he would start blaming the market and start typing filth. The chatroom had private message capability where you could talk to other traders. We used to talk about what was going on because we were not happy. We realized that David had been reading them because he sent us an email claiming that he is having a couple of bad weeks because of the new personalities in the chatroom (see attached picture) and that he was the best trader in the business (the ego factor), that the $249 we paid is spent just on tips (to say that he makes a lot of money), that we should not be talking behind is back, and accused us of having "rookie trips."

By this time, I should have left but I stayed to complete my one month. Only to find more and more losses. I finally had to stop trading because I lost my minimum day-trading equity. However, David keeps trading 5-8 times a day with losses and holds but never ran out of money. In the chatroom, we noticed the number of times he fell asleep (because he told us) and the number of time he skipped trading days.

Here is our final discovery:
1. I think he is an alcoholic that falls asleep at his desks.
2. He is broke. He must have been a day-trader some years ago. He never takes any trades himself but paper trades for the chatroom. Otherwise, he would have had $500, 000 at the rate he was trading everyday at losses and holding 10+ positions at anytime.
3. He has the biggest ego, he shouts at the market or anybody else whenever he goes wrong. He has no respect for the market because he thinks he is always right.
4. He is purposely looking for unsuspecting traders like us so he can convince us to give our trading account for him to trade (see his website for this claim) so he can actually steal your money. He makes you lose money and asks to help you by trading our accounts.
5. I lost 35% of my equity following him.

What do I do? Said enough is enough, cut my losses and I canceled my subscription. Since I was still within the 30-day period, I asked for the money back around mid August 2009. Even after several attempts, I still have NO refund (of $249.00) that he guaranteed to pay back if I was not satisfied. So, just like the guaranteed success in trading, he could not keep this one either. I am going to complain him and his service to every possible entity out here. Any advice is very much appreciated.

For those who read this, DON'T SUBSCRIBE to his service. It might look good at the start, he will make sure you lose money and ask for your trading account. He is a fraud. Don't waste your time.