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Brent Aston wrote:
>
> December 2, 1997
>
> Real Traders,
>
> I have a suggestion for all of us sapsuckers that have to try and sort out
> good Trading Systems, Programs, Information, and various offers. Here it
> is, when you get one of the above products that you are interested in you
> reply by offering about 10% of the asking price along with a guarantee to
> set up an account with X amount of dollars and to trade to the best of your
> ability that product for 3 to 6 months. As soon as net profits exceed the
> full cost of the product you simply pay for it. If the creators of these
> products have real faith in their creations they should have no problem
> with this plan. If you have losses its no pay! (If they really have guts
> they should reimburse you.) If many traders did this I think it would go a
> long way toward fighting fraud in this industry.
>
>
> Cheers,
>
Brent,
In a perfect world this might work. But the world is inhabited by
humans so things are not that simple.
So let's pretend that Brent is a systems vendor with a great trading
system that is right 75% of the time and a good win loss ratio. You tell
Joe Customer that all he has to do is follow the system for six months
and he will have the money to pay you. You call back in six months
believing that he has followed the system and that he will soon be
sending you a check. Surprise!! Joe Customer says that he went on
vacation and missed that big move in the S&Ps and then his wife got sick
so he missed the big profit Silver move. Hoever, he did do the porkbelly
trade, lost the maximum risk of $500 and got disccoraged about 4 months
ago and stopped trading your system. So, why didn't he call your toll
free assistance line and talk to you or e-mail you four months ago? That
is one of the great mysteries of the universe. Unless the burden is on
the trader to perform, the vendor is not likely to get paid. What
guarantee is there for the vendor that the customer will follow the
system? NONE!! In fact, most people will find a way to either not follow
the system or screw it up. It is only when the customer has a
substantial stake at risk that the vendor has any chance of gettting the
customer's undivided attention. And that only applies to the 5-10% of
traders that have what it takes to be winners.
The reputable vendors have to put up with the 95% of traders who
would lose even if they had tommorow's chart today. Those losers look to
blame their own inabilities on whatever "holly grail" they last
purchased.
Yes, there is alot of garbage being sold by trading system and market
advisory vendors. But, even if 90% is junk that is better than the
batting average that general trading public has demonstrated for trading
futures.
So, there are two sides to this story. Most vendors leave much to be
desired, but so does the trading public in the capacity to use these
services or products to make trading profits. Brent, I don't think you
would want to take the other side of your proposal for very long.
Balancedly,
Norman
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