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
best cleaning company Highland Park ..Everything you invest in has risk so you want to... Read More
Just 30 years ago the stock market was a shadow... Read More
What can I expect to make my first year of... Read More
When purchasing mutual funds we are cautioned to read the... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
I would like to share with the reader an article... Read More
Before they go over the cliff to their destruction these... Read More
Where is the beef? Or maybe it should be where... Read More
Every day in any financial publication you will find the... Read More
Recently I watched my favorite football team lose a vital... Read More
Most people think the stock market is a zero sum... Read More
One of the big advertising kicks today from mutual funds... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
One of the basic laws of physics is that a... Read More
An investor can find and research the best stock on... Read More
What account size do I need?How much money can I... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
If you are a baby boomer, time is not on... Read More
With the stock market stubbornly refusing to settle down and... Read More
"Buy and hold" is one of the most heralded investment... Read More
After finding the price of a particular stock, usually the... Read More
Did you run out to buy that duct tape yet?... Read More
high-end home cleaning Winnetka ..Most advisors will tell you they can beat the market.... Read More
We need a rabbit!This was a pretty horrible week for... Read More
If you haven't heard of the technical indicator with the... Read More
This article describes the model of a natural relationship between... Read More
Are you one of those many people who dread reading... Read More
There are red lights, green lights, blue lights and spot... Read More
Jack and Jill went up the hill to fetch a... Read More
It depends on your level of understanding of the market... Read More
Do you own any mutual funds? In an IRA or... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
If it walks like a duck, quacks like a duck... Read More
I often play a little game with myself when I... Read More
I often hear from people, "I don't trade. I invest.... Read More
1. Do not spread your money too thin.My friend has... Read More
I have a 2-car garage. There are nice shelves on... Read More
People are constantly asking me why is the stock market... Read More
Question: How does it get better when it gets worse?Last... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
One of the great "secrets" of successful people is discipline... Read More
If you have a pension plan at work you will... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
Profitable day traders recognize that momentum trading is among the... Read More
One of the main reasons many of us get into... Read More
Stocks & Mutual Fund |