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At 11:49 AM 2/10/98 -0600, diamond wrote:
>Things are quiet at the moment, so here is the question of the day:
>
>I have read many books written by technical analysts, and I have visited
>many web sites selling information about good future prospects in stocks,
>and I have seen many ads concerning a seminar for teaching winning
>stock/futures trading systems.
>
>1. The one question that always comes to my mind first is, *why* would
>anyone who was making money on the stock/futures market, need to market
>anything?
Here are just a few reasons..
A) To add more interesting activities to their lives, trading can be
stressful, monotonous, and solitary.
B) For recognition. It is emotionally satisfying to talk to people
who have read your book.
C) To create another income-stream. The more money you make,
the sooner you can retire. Yes, even good traders dream of
retiring someday (unless they take vacations to avoid burnout).
D) For security. Most trading systems are subject to unpredictable
strings of losses at some point. You never know when, but there
is always a possibility that your system will lose you money in the
near-term.
>2. If I had a good system, and I was making a good profit every trading day
>of the week, it seems to me that I would be on the computer every trading
>day making trades. Why would I waste my time doing anything else that made
>me *less money* for my time?
No system methodology creates predictable dependable income every day. You
have good days and bad days (measured by profits). So having another
revenue source (from selling a book or tape or system) helps smooth
out the bumps.
>3. Why are these people not rich?
>
A) People spend as much as they make. Before, I used to look at people
who drove BMW's and wonder why they waste their money. Now that I make
more money, I drive a BMW, a McLaren or XJ220 would be nice.
It's human nature. People often live at the limit of their budgets, so
when they take a loss, it can sometimes bring down the whole house
of cards.
B) People make mistakes, some drink, some do drugs, some get divorced
some gamble, these are all very expensive activities. Some waste
their trading profits on bad trades ( not sticking with their
methods/systems).
>(Side note: A man called me the other day at my office and offered to teach
>me a winning futures trading system for only $5000.00. I guess I'll never
>know if I passed up a bargain or not.)
>
There is no magic bullet. The education **might** be worth $5,000.00 but
the actual trading system would probably not be worth that much to you.
Someone else's trading system is very difficult to use, you often have
to adapt it to suit your personality. Many systems do not work when adapted.
Best wishes,
-Neal.
>
>Regards
>Zane Kori
>Abilene, TX
>
>*exas
>
>
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