Several times each month I am solicited by various market touts who have a newsletter service, faxes or emails they are willing to send me to make me rich. That sure is nice of them.
The first thing that pops into my head is if this system is so good why are they willing to share it for the lowly sum of $19.95 per month. Of course, some of them will move the decimal point to the right and increase that front number, but not to worry - it is sold with a money back guarantee!
If you should desire to put your toe in the water here are some questions you might want to ask first:
1. Are the figures shown actual trades or is this hypothetical? If it is hypothetical you can stop right there. Total BS.
2. What is the minimum size account I need to take all your signals?
3. Do you use stops?
4. Is slippage and commission figured in?
5. If all trades were made for the past year what was the starting amount and the amount in the account at the end of the year?
6. What was the largest single loss?
7. What was the largest continuous drawdown (loss)?
8. How many winning trades? And average profit?
9. How many losing trades? And average loss?
10. Are you willing to tell me a few clients who are using your method with their permission, of course? (Get references.)
It has been my experience that you will not receive an answer or you might get a form letter saying their method is proprietary information and cannot be given out. Hogwash. We know where you can put that letter.
You might ask to see their model account. Surprisingly the Securities and Exchange Commission does not require these hucksters to maintain such an account. I'd like to see such a regulation passed; there would be a lot less of these methods and systems sold as most of them would go broke. Before you send any money please make them prove with additional documentation exactly what they are selling.
Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Copyright 2005
Ford Excursion rentals Bolingbrook ..Peter is a professional trader, Paul is not. Peter has... Read More
Ever notice how behavior in one area of life can... Read More
When will the stock market stop going down and start... Read More
How many times have you said to yourself, "I'd like... Read More
Any online investor / trader seeks an excellent off or... Read More
I am sure that if you have a brokerage account... Read More
Every day on CNBC-TV they show a 200-day moving average... Read More
Most people think the stock market is a zero sum... Read More
A common problem I often see when working with living... Read More
There are major differences between trading stocks and trading futures.... Read More
As an investor you will want to check out any... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
There has been great condemnation recently because China has been... Read More
One of the things people are always asking me is... Read More
One of the great truisms of Wall Street is "Don't... Read More
The fight continues to rage among traders who use technical... Read More
Day trading is all about making buy and sell decisions.... Read More
When you become interested in a stock or mutual fund... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
One of the basic laws of physics is that a... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Who are the successful investors?There are those who follow the... Read More
No, this is not a symbol for some Latin number.... Read More
Bluffs Ford Excursion rentals ..According to Investopedia Inc. the penny stock market has seen... Read More
We learnt the following the hard way! If any of... Read More
Did you know you can make money (and a lot... Read More
One of the basic laws of physics is that a... Read More
It has been said that low cost or even free... Read More
Since I can remember, and that's a long time ago,... Read More
The Bollinger Band theory is designed to depict the volatility... Read More
After finding the price of a particular stock, usually the... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
Just 30 years ago the stock market was a shadow... Read More
The big bad bear is stirring again. So far he... Read More
Refuse is a serious issue in any society, about as... Read More
No, this is not a symbol for some Latin number.... Read More
Recently I watched my favorite football team lose a vital... Read More
As an investor you will want to check out any... Read More
One of the greatest challenges of investing in stocks is... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
Mutual funds were created with the idea that one person... Read More
I read a comment by a forum member on another... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
As an investor you will want to check out any... Read More
Dollar cost averaging is one of the most popular ideas... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
Where is the beef? Or maybe it should be where... Read More
We are already in it, but you can't see it.... Read More
Stocks & Mutual Fund |