According to FCA, armchair investors are inspired by Sherlock Holmes to detect investment scams. 

According to FCAs February 21st, 2023 report, New research has found that 25% of investors who avoided a scam are taking inspiration from Sherlock Holmes to stop scammers in theirs. It comes as the FCA launches its latest ScamSmart campaign, providing investors with the tools to identify and avoid scams.

Sherlock Holmes is a fictional detective created by British author Arthur Conan Doyle. Sherlock Holmes is known for his proficiency with observation, deduction, forensic science, and logical reasoning that borders on the fantastic. Sherlock Holmes has also become the representative of intelligence, ration, and victory, and the object of worship for many people worldwide.

Analysis of data from the FCA's consumer helpline shows a 193% increase in calls to the agency over the past five years as investors spot warning signs of investment scams. In 2022, eagle-eyed investors saved more than £2m by calling the FCA to report the company or individual before losing money. 39% of respondents claimed that their investigative or research skills were helping them discover clues. Another 32 percent relied purely on intuition to distinguish real investment opportunities from potential scams. The study found that “sleuthing” investors cited spotting mistakes (34 percent) and asking for their personal information to secure opportunities (34 percent) as the most common signs of an investment scam. Other warning signs that made investors suspicious included being contacted out of the blue (33 percent) and being pressured to invest before the “offer” ended (26 percent). Of the 1,036 investors surveyed by the FCA who had avoided investment scams, a third (33%) found out about opportunities via email, and a quarter (25%) by personal phone. Once an investor realized an opportunity was fraudulent, 42 percent warned family and friends, while a further 27 percent took to social media to warn others.

A successful trader must possess a variety of traits in order to succeed. Traders have to learn fundamental and technical analysis and learn to incorporate them into their trading strategy. Trading strategy and building confidence is also important. But, the biggest trait to master will be your trading psychology, the mental state you will be in when trading.