Several times a month I asked
by various market touts who have a newsletter
service, faxes or e-mails they are willing to
send me to make me rich. That is certainly 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 with the small sum of $ 350 or $ 19.95 per month or other cheap price. Of course, some of them will move to the point and increase that number right front, but not worry - it is sold with a money back guarantee! Has to cover any losses that guarantee I can go up if I rub the magic lantern and trade what the spirit says? I do not think so.
Should anyone desire to have his toe into the water here are some questions that are a must for each consultant:
1. The figures shown actual transactions or this hypothetical? If the hypothetical stop there. Total BS. Accept only the actual trading numbers.
2. What is the minimum size necessary to take into take all signals?
3. His stop loss orders in the service? Never buy each tout sheet that does not have a built- protection.
4. Is slippage and commission came in?
5. If all transactions were made for the past year what was the basic amount and the amount the bill at the end of the year? Than subtraction slippage and commission.
6. What was the biggest loss?
7. What was the largest contiguous drawdown (Loss)?
8. How many winning trades? And average profit?
9. How many losing trades? And average loss?
10. Are they willing to have a few clients who refer uses your method with their permission, of course? (Get references.)
It is my experience that traders will not get an answer or maybe get a standard letter say their method is proprietary information and can not be distributed. Nonsense. We know where You can put this letter.
Ask to see their Model account. Surprisingly the Securities and Exchange Commission require these vendors maintain such account. I would like to see such a scheme adopted, far fewer of these would methods and systems sold most would go bankrupt.
If they can prove their method satisfaction of the trader that he would like to try their system, but if the buyer does not plan to follow each trade as described in the method then it should not be bought. Do not try to outsmart the system.
Before an investor sends money they documentation to prove exactly what they are sell.
The first thing that pops into my head is If this system is so good why are they willing to share it with the small sum of $ 350 or $ 19.95 per month or other cheap price. Of course, some of them will move to the point and increase that number right front, but not worry - it is sold with a money back guarantee! Has to cover any losses that guarantee I can go up if I rub the magic lantern and trade what the spirit says? I do not think so.
Should anyone desire to have his toe into the water here are some questions that are a must for each consultant:
1. The figures shown actual transactions or this hypothetical? If the hypothetical stop there. Total BS. Accept only the actual trading numbers.
2. What is the minimum size necessary to take into take all signals?
3. His stop loss orders in the service? Never buy each tout sheet that does not have a built- protection.
4. Is slippage and commission came in?
5. If all transactions were made for the past year what was the basic amount and the amount the bill at the end of the year? Than subtraction slippage and commission.
6. What was the biggest loss?
7. What was the largest contiguous drawdown (Loss)?
8. How many winning trades? And average profit?
9. How many losing trades? And average loss?
10. Are they willing to have a few clients who refer uses your method with their permission, of course? (Get references.)
It is my experience that traders will not get an answer or maybe get a standard letter say their method is proprietary information and can not be distributed. Nonsense. We know where You can put this letter.
Ask to see their Model account. Surprisingly the Securities and Exchange Commission require these vendors maintain such account. I would like to see such a scheme adopted, far fewer of these would methods and systems sold most would go bankrupt.
If they can prove their method satisfaction of the trader that he would like to try their system, but if the buyer does not plan to follow each trade as described in the method then it should not be bought. Do not try to outsmart the system.
Before an investor sends money they documentation to prove exactly what they are sell.
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