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
and discover why he's the man that Wall Street
does not want you to know.