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New traders conned

This morning I receive yet another email from somebody selling a system for beating the markets. It’s some software that runs on their server, that gives off signals when to enter long or short. Cost? USD $997 down from $1491 – and one is offered some ‘ultra’ indicator as free. Links to the advert are tracked, so that ‘they’ can monitor who clicks what in their emails. The adverts usually have a set of testimonials from folk who nobody really knows,  saying how great it is. One almost never sees adverse comment on these things. There is the usual fat disclaimer in these emails and adverts as you would imagine.

What are they actually selling? Ultimately it’s about a packaged ‘edge’ on the markets. So, they’re selling a thing which if you use, would give you an advantage in beating the markets. This is obviously designed to make you more dosh than you might without it. Okay – so there can be no guarantees, and hence the fat disclaimer.

If these indicators or strategies etc can give everybody an edge, then surely ‘everybody’ should spend around $1000 to enhance their whole-life’s earnings. Of course, the people who sell these things never state explicitly that their ‘thing’ gives an edge. Let’s not play with words; they are selling an edge. Sure – they never denied that a whole lot of training and experience are necessary to use the thing they’re selling. Nonetheless, it means that everybody of sound basic intelligence who gains the experience and training with their system can become rich – is the implied meaning. I disagree. Why? Because the main ingredient is actually training and experience, using any ‘device’ that could beat the markets.

But some argue that their thing is just a short cut. Wrong! There are no shortcuts in financial trading. From my own experience and that of successful traders, if you don’t do the time, if you don’t feel the pain of loss, if you cannot change your mindset, if you haven’t learned how to manage chaos – no system out there is gonna give you an edge.

Conclusion

The whole business of selling systems, methods, indicators – and the like – is about selling dreams to fools. I can expect fierce disagreement of the type that ‘there are some systems that may give people an edge’. Those who believe that sort of trading should sign up instantly for the Quantum Code or the Quick Cash System.

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