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Mark
Interesting post but I notice you left something out. Specifically the
court case the CFTC lost concerning free speech and the constitution. Now I
know they are conveniently ignoring the constitutional question, but it's
interesting they pushed through new regulations to now create unregulated
CTA and avoid the constitutional question. I assume they realized they were
doomed to lose on appeal and the loss might be substantially more than what
they lost in this round.
Anyway, their fraud provisions still stand for regulated as well as
unregulated CTA.
These new rules only affect Newsletter publishers and software developers as
I understand them. I've always found the people selling little black boxes
to be the most amazing people around. I've yet to see one that works as
advertised, but I haven't looked at too many. I know what's involved in
keeping our own systems working and the thought of buying one of these
without the ability to maintain it blows me away. This gets back to my
first question, and that is if it's any good, why sell it at all?
Now newsletters are another matter. If a newspaper publisher has no
personal contact with their subscribers and they are not handling their
money in any way or offering any personalized recommendations, and are just
publishing a general newsletter, it appears that the market for this drivel
is quite large. People can watch you hang yourself in print, monitor your
successes or failures and determine whether or not they would like to follow
your recommendations. I know you're in the biz, but you know how many of
these newsletters are actually worth the paper (or ether in terms of the
Internet) they're printed on, let alone what you pay for them. But I would
like to add, if you find a newsletter you like, the author has been
successful and you verify it for yourself by tracking his/her actual
recommendations, ignoring any and all advertising fluff, and the newsletter
suits your own style of trading, then I'd suggest they might be a good buy.
I second your recommendations concerning audited statements or copies of
actual trades or both, but since I'm normally paranoid, I would add the
proviso that you should monitor the newsletter's recommendations personally,
thereby providing your own proof of performance. Take advantage of those
free introductory periods and put them to good use without investing any
real money. Nothing beats paper trading to get a feel for the service.
I have attached the new CFTC regulations in case anyone is interested in
them.
Guy
Paranoia...you only have to be right once to make it all worthwhile!
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of Mark Brown
Sent: Monday, May 15, 2000 5:17 PM
To: metastock@xxxxxxxxxxxxx
Subject: Be Warned about Guru's
Hello metastock
what the cftc has done lately is crack down on people who make claims
of winning trades without making it clear what the risk is. the cftc
investigated and found that most ALL people who were trying to get
clients and or bragging about all the winning trades they were making
in FACT did no even have a trading account of their own.
this is the way they manipulate to play on your greed that your
missing out ect. claims of a high percentage of winning trades was
one of the tip off's of a possible scammer. when in doubt - ask for a
disclosure document and an independently audited track record. also
ask when was the last time the advisor was audited by the nfa. i
would also suggest that you check the basic listings at the nfa web
site.
be advised that anyone who is a nfa member and cta is prohibited from
giving trading advise without fist having that person read and
acknowledge a risk disclosure statement.
For more detailed information about the risk associated with trading
futures please contact the CFTC or the NFA or visit their web site
-information listed below.
Commodity Futures Trading Commission
Three LaFayette Centre
1155 21st Street, N.W.
Washington, D.C. 20581
www.cftc.gov
National Futures Association
200 W. Madison Street
Suite 1600
Chicago, Illinois 60606-3447
1.800.621.3570.
www.nfa.futures.org
Beware of Websites Selling Commodity Trading Systems that Guarantee High
Profits with Minimal Risks
http://www.cftc.gov/enf/00orders/posting4-tradingsystem.htm
>From the CFTC website also see the public advisory:
The following respondents and their websites were the subjects of the CFTC
orders:
Firm or Individual (click to view Order): Website Address:
Oasis Publishing Corp. and Gordon J. White
http://www.pr-success.com/; http://www.risktaker.com/
Mohammed Najib Taybi
http://www.yenman.com/
John B. Reily
http://www.bonds2000.com/
Paul B. Judd and Paul Judd International Corp.
www.pauljudd.com/
Michael P. Calo d/b/a First Financial Trading
http://www.pr-success.com/
Christopher F. Salter d/b/a Christopher Fernwick
www.learntoprofit/futures/index.htm
RS of Houston
http://www.rsofhouston.com/
Eron Demian Read d/b/a New Age Trading Techniques
Global Futures Exchange & Trading Company
http://www.natt.net/
Trendy Systems, LLC; Allan P. Harris; Joseph Prewitt
http://www.trendysystems.com/
Ellery Coleman d/b/a Granite Investments
www.choicedaytrades.com
The ten orders require the promoters to cease and desist from violating the
provisions of the Commodity Exchange Act (CEA) and the CFTC's regulations
which
the Commission found they violated; to undertake, among other things, to
make
no unsubstantiated profit or risk claims; and to pay $10,000 civil monetary
penalties, unless respondents have demonstrated to the Commission that they
do
not have the financial ability to pay such a penalty.
--
-Thanks, Mark
ps it seems most crooks in this business always talk about their
winners all the while conveniently NOT talking about their losers.
Attachment Converted: "f:\eudora\attach\CFTC ruling.txt"
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