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Buyer beware!
In 1993/1994, Joe Ross ran a fax service called "Research Considerations."
For some time I subscribed to it, but Joe wasn't very successful. Most
recommendations that I saw turned out losers. It also transpired that
accounts managed by Joe Ross had to be closed because he had lost too much
money for his clients. Joe Ross himself made mention of this fact in a
newsletter which I still have somewhere here in my office.
Though I agree there is also some good information in Joe's books, I would
be very careful with a number of his "creative" ideas which can lead to
financial suicide. For instance, what do you do when you've incurred a loss?
Simple, you blithely sell naked options, and the premium received will fill
up your account again. He calls this principle "selling your losses to
someone else". Do I need to explain how disastrous this can be?
Another pet method of his is the purchase multiple contracts with the
stipulation to sell part of them a minute later when you have made a few
ticks on them. This is supposed to serve to "cover commissions". In his day
trading book "Trading by the Minute", he tries to follow this recipe in some
of his S&P examples; some are so chaotic on account of these many contracts
bought and sold that it becomes immediately obvious to any professional the
guy could never have traded these examples in real life. No wonder he
couldn't produce any account statements.
So please be careful. Joe's books are quite entertaining to read, though,
and if you treat them as great trading fiction literature, you will be safe.
Regards,
Michael Suesserott
-----Ursprüngliche Nachricht-----
Von: Wilson Meador [mailto:whmkn@xxxxxxxxxx]
Gesendet: Tuesday, February 20, 2001 16:15
An: omega-list@xxxxxxxxxx
Betreff: Re: The Ross Hook and Babcock
Babcock reviewed Ross's work several years ago, and his beef was that none
of Ross's methodology was backed up with mechanical testing reslults. As I
recall, BB contacted Ross and asked for documentation of his trading
success, ie copies of statements, etc, and Ross refused. That being said,
Ross's work is very common sensical, and my guess is that he is what he says
he is.
The hook is really just a breakout through a pivot point trend continuation
signal. You will occasionally see his books on ebay, and can pick one up a
little cheaper than retail. You can also get it through amazon and return it
if you don't think it's value will hold up.
----- Original Message -----
From: "Ron Augustine" <RonAug@xxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Sunday, February 18, 2001 4:05 PM
Subject: Re: The Ross Hook
> Don't know anything about Ross or his work, but it might be worth pointing
> out that Babcock has been dead for three years and was in failing health
> for several years prior. He also was not without controversy --
everything
> from selling stolen systems to publishing, promoting, and selling systems
> that simply didn't work (not that this minor infraction is uncommon :)
> _______________________________________
> At 09:33 PM 02/18/2001 +0000, you wrote:
> >Bruce Babcock - the critic's critic and LW calls him - has voiced a
> >reservation or two about his books.
> >
> >Any comments and opinions would be appreciated.
>
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