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> From: nwinski <nwinski@xxxxxxxxxxxxxxx>
> To: brente@xxxxxxxxxxxx
> Cc: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: GEN - Fighting Fraud
> Date: Tuesday, December 02, 1997 3:36 PM
>
> 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
>Norman,
It sounds a little like you may have some personal experience here. I have
not had the experience of being a system vendor. However, I have had
experience in the real business world. I owned a sandwich shop for a few
years and I learned that you have to take the responsibility for every
aspect of the enterprise including other peoples failings as well as your
own mistakes. If someone didn’t like the food I didn’t require them to pay.
If my employee messed up I had to make it right.
Now, I will admit that the system vending business is not directly
comparable to the restaurant business but vendors would do well to remember
that the customer is most always right and that a customers failure is
their failure. If the truth is that you must spend 8 hours a day following
a plan, and that only 5% of traders can execute the plan successfully, and
that you must be a pit trader for ten years to have a handle on
successfully trading the system. Let the truth be known.
If there was not the 90% of fraud and “junk” out there then very likely
90% of the traders wouldn’t be failures. I have often wondered if someone
invited me to a poker game and told me from the outset that I had only a
one in ten chance of winning and that the deck was stacked and that I had
to call in by phone to get information on the hands of the other players
and even that was 15 minutes delayed, would I ante in? I think that the
exchanges themselves should be the truth detectors. They should tell it
like it is and not stand behind a disclaimer. “Futures Truth” should be
well funded and receive that kind of backing. If this is Vegas don’t tell
me that its simple and that all I have to do is buy this great system and
bank the profits. Here's to a more perfect world.
Responsibly,
Brent
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