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Beware of system peddlers. Yesterday I received a thick envelope from someone peddling their "sure-fire" system for making a killing in the stock market.The only requirement was that the system buyer have about $9,000. Five thousand dollars to invest and about $4,000 to buy their software. The thought occurs to me that if someone has a "sure-fire" system, why do they waste their time trying to sucker beginners into donating their money? Of course,the mails are not the only means by which "fool-proof" systems are peddled. The internet is full of gurus offering their magic systems or recommendations for a price. Typically,they show graphs of momentum stocks that their system has always bought on pullbacks and sold at peaks.Don't fall for that garbage. I suspect that their full-proof system of making money in the stock market is not in buying and selling stocks, but in selling their system or recommendations.
Posts: 217 | From: Texas | Registered: Jun 2003
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posted
Absolutely right. Just like Wizetrade and other similar systems. Most of what these people are hyping is nothing more than Moving Averages, which can be had for free on many web sites, although these won't do the job either. One has to have a very sophisticated Platform, which doesn't cost thousands, doesn't sell CD's, have monthly subscriptions, and doesn't promise to get you rich quick. They make their money selling you the promises. If you had a "sure-fire system" why wouldn't you be spending your time trading and making millions?
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Unfortunately,there's no system that works all the time and for everybody. Stock picking with technical analysis is really a skill. Some people can do it profitably, others can't. Actually, the trader's character is more important than the system. Most anybody can put together a system that works on paper, but won't work for a lot of traders because they cannot follow basic rules such as selling losers quickly. Probably, learning when to sell, and doing it, is more important than when to buy. The fact is that people find it easier to buy a stock than to sell it with a small loss. I always thought that trading should be by a team of two people. One doing the buying and the other doing the selling.
Posts: 217 | From: Texas | Registered: Jun 2003
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