Exposing the Slime of Stock Trading
After fifteen years as a stock trader, I've met a lot of different experts in the field. Most are terrific, but there are those slimy few that mess it up for everyone else. Sadly, new investors who encounter these unfortunate few are often turned off to stock trading for life for fear that they will always get burned. I wanted to share a few of my encounters with these slimy few in order to give you a heads up before you go through what I did. So here are a few of my experiences, and a couple tips for avoiding them yourself.
My worst experience was with the ultimate in slime, an encounter that changed my entire career. Through it, I learned the most influential lesson in my life: that some folks don't care who they hurt along the way, they are just in it for their own benefit. I also finally discovered that I could not be the same as that, and I established a core value through the experience: pass up any business opportunity that resulted in someone else getting hurt.
The stock trading service I was subscribed to provided a list every day with stocks that they recommended we subscribers buy or sell short. This is fairly typical for a stock trading service, as were the impressive statistics they showed me to support that the stocks they chose would perform as predicted. I was sold and signed right up.
If you are dealing with a reputable stock trading service, it can be a great way to find profitable stocks on a consistent basis. But, unlike those credible services, this had a different goal that I was not aware of at the start. Turns out, the key management personnel of the service were recommending stocks to their subscriber group for the sole purpose of controlling the prices for their own gain.
Here is an example to explain what I mean. The owners of the stock trading service would first buy a stock such as IBM through their account. They would then recommend to the entire 3000 + subscriber group that everyone should buy IBM stock. The subscriber group would start making these purchases, which would drive up the price of IBM stock. Once the slime was satisfied with their profit, they would cash in the stock they had originally purchased.
I couldn't believe that this service was using its subscribers to front run their own orders. Their goal wasn't to assist and help the subscribers as advertised, but rather to make their own profit and get out. Not only was this wrong, but the subscribers were paying them to make it happen!
Now true, most stock trading services would never conduct business in that manner. But many do act in an equally slimy manner by trying to convince the new trader that stock trading is much too dangerous to do alone. They work hard to convince you that in order to be profitable trading stocks you must subscribe to their expensive service and let them do all the work for you.
True, stock trading is complicated at first, until you have found a system that is right for you. But anyone who tells you that you can never learn enough to handle it yourself at some point, is just trying to milk you for the monthly fees. These systems are typically pretty generic and don't take into consideration your personal risk tolerance or trading preferences.
There will always be some investors out there that don't want to trade on their own, and for these folks the monthly stock trading service might be the way to go. They will receive solid trade recommendations that are right some of the time. The return is usually tolerable, but I have found that if you can find a system that works for you and your risk level, you will realize higher returns in the long run and a more satisfying experience.
It does take some upfront legwork to find someone to help you learn the ropes without taking control over from you. But there are plenty out there and you will be pleased with the result as they will take the slime out of the profession and help you help yourself become proficient at stock trading. I guarantee, you will enjoy the results for many years to come. - 23226
My worst experience was with the ultimate in slime, an encounter that changed my entire career. Through it, I learned the most influential lesson in my life: that some folks don't care who they hurt along the way, they are just in it for their own benefit. I also finally discovered that I could not be the same as that, and I established a core value through the experience: pass up any business opportunity that resulted in someone else getting hurt.
The stock trading service I was subscribed to provided a list every day with stocks that they recommended we subscribers buy or sell short. This is fairly typical for a stock trading service, as were the impressive statistics they showed me to support that the stocks they chose would perform as predicted. I was sold and signed right up.
If you are dealing with a reputable stock trading service, it can be a great way to find profitable stocks on a consistent basis. But, unlike those credible services, this had a different goal that I was not aware of at the start. Turns out, the key management personnel of the service were recommending stocks to their subscriber group for the sole purpose of controlling the prices for their own gain.
Here is an example to explain what I mean. The owners of the stock trading service would first buy a stock such as IBM through their account. They would then recommend to the entire 3000 + subscriber group that everyone should buy IBM stock. The subscriber group would start making these purchases, which would drive up the price of IBM stock. Once the slime was satisfied with their profit, they would cash in the stock they had originally purchased.
I couldn't believe that this service was using its subscribers to front run their own orders. Their goal wasn't to assist and help the subscribers as advertised, but rather to make their own profit and get out. Not only was this wrong, but the subscribers were paying them to make it happen!
Now true, most stock trading services would never conduct business in that manner. But many do act in an equally slimy manner by trying to convince the new trader that stock trading is much too dangerous to do alone. They work hard to convince you that in order to be profitable trading stocks you must subscribe to their expensive service and let them do all the work for you.
True, stock trading is complicated at first, until you have found a system that is right for you. But anyone who tells you that you can never learn enough to handle it yourself at some point, is just trying to milk you for the monthly fees. These systems are typically pretty generic and don't take into consideration your personal risk tolerance or trading preferences.
There will always be some investors out there that don't want to trade on their own, and for these folks the monthly stock trading service might be the way to go. They will receive solid trade recommendations that are right some of the time. The return is usually tolerable, but I have found that if you can find a system that works for you and your risk level, you will realize higher returns in the long run and a more satisfying experience.
It does take some upfront legwork to find someone to help you learn the ropes without taking control over from you. But there are plenty out there and you will be pleased with the result as they will take the slime out of the profession and help you help yourself become proficient at stock trading. I guarantee, you will enjoy the results for many years to come. - 23226
About the Author:
W. Alan Gay has been a day trader and coach for fifteen years. His free report describes Alan's voyage to becoming successful at trading stocks and gives useful tips he and his students have used to consistently trade successfully. Click to obtain a free copy of his report and learn more about how you could be trading stocks successfully in as little as two weeks.
posted by X - Men @ 3:13 AM
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