Shadowing Practice: The $12 Billion Trading Scam That Only Works If You Fail - Learn English Speaking with Video

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Let me ask you a question: if I told you there was a business where 93 % of customers lose, the house makes guaranteed money no matter what,
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and people keep coming back convinced this time will be different.
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you'd immediately assume I'm talking about a casino, right?
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And honestly, that would be generous.
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Because at least in a casino, the rules are honest.
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You already know the odds are bad.
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You know the house edge is baked in.
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And no one pretends roulette is a career path.
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But the same can't be said for what I'm going to show you today.
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And that's because it's worse than a casino.
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But before I jump in, just a quick preface: I know this video is a little different from my usual ones.
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If you're new here, I usually make videos about market news, investing, and all the fun ways capitalism can quietly rearrange your future while you're microwaving leftovers.
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But what I'm talking about today is so widely accepted, so normalized, and so clearly a scam, that I couldn't not make a video about it.
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So stick with me until the end, because once I lay this all out, I think you're going to feel the same mix of shock, anger, and disbelief that I feel.
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And if you like these styles of videos, let me know in the comments, and I'll make more.
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Because the finance industry is full of scams, and the one we're talking about today is hiding in plain sight.
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I'm talking about proprietary trading.
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Or, as it's more commonly marketed, prop trading.
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And before you start typing your comments, I'm not talking about the glamorous Hollywood version of trading where some hoodie -wearing savant turns 10k into a million
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while drinking espresso and whispering "alpha" into a Bloomberg terminal.
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I'm talking about the more common version, the retail facing version.
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The one with challenges, profit targets, drawdown limits, and Discord servers full of people posting screenshots of green days right before they disappear forever.
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And if you think this is just some niche corner of finance, it's not, because prop trading has exploded in recent years.
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And videos like this are a key driver behind the industry's growth, because these videos sell a pipe dream on TikTok,
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and have quietly turned prop trading into a $12 billion industry that has Gen Z and millennials hooked.
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But, here's the part they don't put in the TikToks:
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did you know only 7 % of prop trading accounts manage to turn a profit?
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And of those 7 % of traders that do manage to turn a profit, the average return is about 4%.
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Let that sink in.
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Because let's say you beat the odds.
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You're disciplined, you're consistent, and you have an actual edge.
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You make it into the top few percent of traders who earn that 4 % return.
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But then, at that point, the question becomes, was it worth it?
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And the answer is overwhelmingly no. Because 4 % doesn't just underperform the S &P 500, it underperforms gold, real estate, and even United States treasuries.
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Meaning you can be a prop trader and stress so hard your hairline needs a trip to Turkey, pay for $1 .5 million mind -boggling fees and spend years chasing profitability.
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Or, you can do absolutely nothing, take nearly zero risk, get favorable tax treatment, and earn a comparable yield by just buying US Treasuries.
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Because a 4 % return isn't just underperforming, that's essentially matching the risk -free benchmark.
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So, if the odds are this bad, the returns aren't impressive, and the alternatives are objectively better.
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Why would anyone do this?
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And the answer is simple: social media.
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Because if you scroll through the finance side of TikTok for five minutes, you'll see the same stories on repeat: a rented Lamborghini, a broccoli -haired teenager flaunting money,
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and a P &L screenshot with no context.
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They tell you anyone can be like them.
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That losses are just a part of the journey, and that failure only means you didn't work hard enough.
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And the worst part about it all is: the sales pitch is working.
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Because what was a nearly non -existent industry five years ago has now entered the mainstream.
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So the million dollar question is: who's actually winning from this?
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And spoiler: it's not the traders.
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It's the firms that provide the "funding." Because here's how the business model actually works: a trader pays an upfront, non -refundable fee to attempt a trading challenge.
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In return, the trader receives what looks like a $50k or $100k trading account, but it's not real.
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It's a paper trading account on a simulated platform.
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Then the trader goes about trading.
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If the trader fails the challenge by hitting a drawdown limit, the firm just keeps the trader's original fee, the account is reset, and both sides move on.
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If the trader succeeds, the firm may pay out a profit split, where the trader receives a percentage of the simulated profits and the firm keeps the rest.
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But here's the crucial detail that never gets mentioned.
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These payouts don't come from the market profits.
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They come from the pool of fees collected from the other traders who where the entire thing clicks.
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The entire business model of these prop firms is built on one statistical concept: gambler's ruin.
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The fundamental idea behind gambler's ruin is
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that in any game of chance where the gambler has finite capital and a non -positive expected value,
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it is statistically certain that the gambler will eventually hit a string of bad luck and go bankrupt.
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And it's not because the gamblers are stupid or because they're reckless, but it's because you have a non -positive expected value and time is working against
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And I can break this down and show you in an even simpler example.
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Let's say you're playing roulette and you only bet black.
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There are 38 pockets on a roulette board and 18 are black.
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This means you have a little over a 47 % chance to win given any spin.
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So, you play a few rounds and you get on a winning streak.
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But that's where the gambler's ruin concept starts to set in.
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Because every single spin of the roulette wheel has a negative expected value.
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And it doesn't matter how calm you stay.
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It doesn't matter how good you feel about your system.
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The math doesn't care.
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Because a 47 % win rate means you have a 53 % chance to lose.
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And because of this, you will eventually hit a bad streak.
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They just wait and let time do the work.
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Because the longer you play, the more certain your losses become.
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Not possible.
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Not likely.
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Inevitable.
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It becomes inevitable.
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You will lose.
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But before I keep going, let's talk about another problem that's entered the mainstream, and that's online privacy concerns.
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Which brings us to the sponsor of today's video, Incogni.
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Because according to the annual data breach report by the ITRC, the number of data breaches worldwide rose 211 % from 2023 to 2024.
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And these cybercriminals don't discriminate.
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They'll expose your phone number, your financial information, your health information, and even your social security number.
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And once your personal information is exposed online, it gets copied, packaged, and sold through data brokers and other sites you've never heard of.
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but Incogni helps reduce that risk by removing your personal data from the Internet.
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Their automated removal process removes your personal information from hundreds of known data brokers.
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And if your data shows up outside their automated coverage, well, they have a custom removal feature, where you simply just send them a link to where your personal information is exposed,
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and a dedicated privacy expert will handle the rest.
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Incogni also offers a 30 -day money -back guarantee, so you can try it out and decide for yourself whether it's right for you.
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So if you want to take back control of your personal data, you can go to incogni .com /casualfinance 60 % off an annual plan.
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Thanks to Incogni for sponsoring this video and letting me focus on what matters.
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And that's exposing the fine print in finance.
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So, let's get back to the idea of gambler's ruin and how it's used in the prop trading industry.
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Because when you apply the idea of gambler's ruin in an industry where you have a 93 % chance to lose, the odds are never in your favor.
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And that's how these firms make money.
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That's the edge.
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They don't make money by finding the next generation of elite traders.
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They Because gambler's ruin doesn't require stupidity or recklessness, it just requires time and repetition.
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And when you combine the math with things like strict drawdown limits, capped upside, and reset to zero failure conditions, the outcome is inevitable.
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From these firms' perspectives, it's just a volume business.
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They don't care who passes challenges or who trades on their platform, they just care about how many people try.
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Because if 300 ,000 traders attempt a challenge, and on average 279 ,000 fail, The firm is okay with the ones that succeed and cost them money.
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In fact, they like it.
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Because the ones that succeed are the proof of life, the illusion of hope.
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Because they use the winners as marketing
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so they can reach a scale to where the business model makes sense and gamblers ruin can take over.
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And once you see it that way, everything clicks into place.
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Because prop trading isn't a story about bad traders making mistakes.
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It's a story about a system that only works if most people lose.
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Because in prop trading, you aren't the customer.
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You're the input.
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Your attempts fund the system system, your retries keep it alive, and your rare wins market it to the next wave of delusional traders.
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So if there's one thing you take away from this video, please stay as far away from this industry as you can, because these businesses sell a pipe dream and profit off your financial ruin.
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And if you've heard any trading horror stories from friends, Reddit, or even personal experiences, please drop it in the comments.
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Because the more we can shine light on this predatory system, the more we can help individuals And remember,
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sometimes the best trade you can make is not trading at all.

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Vocabulario y notas de pronunciación para esta lección

Este vídeo tiene 119 frases y 1701 palabras para practicar shadowing. La parte hablada dura 9:09. El hablante habla rápido, unas 186 palabras por minuto, así que espera sonidos enlazados y reducidos. Solo el 80 % de las palabras está entre las 3.000 más comunes del inglés, por lo que el vocabulario es exigente.

Vocabulario clave de este vídeo

15 palabras del vídeo que vale la pena aprender, con su pronunciación y significado:

PalabraPronunciaciónSignificado
trader sustantivo/ˈtɹeɪdɚ/comerciante, tréider
prop sustantivo/pɹɑp/apoyo, puntal
ruin sustantivo/ˈɹuː.ɪn/ruina
odd adjetivo/ɑd/extraño, raro
expose verbo/ɪkˈspoʊz/exponer, develar
casino sustantivo/kəˈsiːnəʊ/casino
inevitable adjetivo/ɪˈnɛvɪtəbəl/inevitable
earn verbo/ɝn/ganar, granjear
guarantee sustantivo/ˌɡæɹ.ənˈtiː/garantía, caución
spin verbo/spɪn/girar, rotar
privacy sustantivo/ˈpɹaɪ.və.si/intimidad, privacidad
removal sustantivo/ɹɪˈmuː.vəl/remoción, eliminación
mainstream adjetivo/ˈmeɪn.stɹiːm/normal, aceptado
pipe sustantivo/ˈpaɪp/caramillo, flauta f)
treasury sustantivo/ˈtɹɛʒ.ɚ.i/tesorería

Phrasal verbs que vas a escuchar

PalabraSignificado
get back to verboresponder / contestar (en un rato), volver / tornar a contactar
show up verbocomparecer, personarse
take back verboretirar, retractarse
take over verboapoderarse, enseñorearse

Pronunciación a tener en cuenta

El hablante usa 38 contracciones y formas reducidas, como you're, I'm, doesn't. Dilas en su forma corta, tal como las oyes.

  • Los sonidos de “sh” y “zh”: treasury /ˈtɹɛʒ.ɚ.i/, screenshot /ˈskriːn.ʃɑt/, shock /ʃɔk/, essentially /ɪˈsɛnʃəli/, crucial /ˈkɹuː.ʃəl/
  • Palabras largas — cuida el acento: inevitable /ɪˈnɛvɪtəbəl/, mathematics /mæθ(.ə)ˈmæt.ɪks/, essentially /ɪˈsɛnʃəli/, fundamental /ˌfʌn.dəˈmɛn.təl/, statistical /stəˈtɪs.tɪ.kəl/

Cómo practicar con este vídeo

  1. Escucha el vídeo entero una vez sin hablar y anota las palabras que no conoces.
  2. Empieza a velocidad 0,75×, haz shadowing frase por frase y vuelve a la velocidad normal cuando te resulte fácil.
  3. Grábate y compara con el original, prestando atención a palabras como trader, prop, ruin.

Gramática en este vídeo

Las estructuras que más usa el hablante, con las palabras exactas del vídeo:

EstructuraEn el vídeo
Voz pasiva be + participio pasado — importa lo que ocurre, no quién lo haceis baked · can't be said · is built
Present perfect have/has + participio pasado — una acción pasada que sigue importando ahorahas exploded · has now entered · you've never heard

¿Qué es la Técnica de Shadowing?

Shadowing es una técnica de aprendizaje de idiomas respaldada por la ciencia, desarrollada originalmente para la formación de intérpretes profesionales y popularizada por el políglota Dr. Alexander Arguelles. El método es simple pero poderoso: escuchas audio en inglés nativo y lo repites en voz alta de inmediato, como una sombra que sigue al hablante con solo 1-2 segundos de retraso. A diferencia de la escucha pasiva o los ejercicios de gramática, el shadowing obliga a tu cerebro y músculos de la boca a procesar y reproducir simultáneamente patrones de habla reales. Las investigaciones muestran que mejora significativamente la precisión de la pronunciación, la entonación, el ritmo, el habla conectada, la comprensión auditiva y la fluidez al hablar, convirtiéndola en una de las metodologías más efectivas para la preparación del IELTS Speaking y la comunicación en inglés en el mundo real.

Técnica de shadowing: lee la guía completa paso a paso →