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At 07:02 AM 6/25/98 -0500, Kevin Hoggart wrote:
>RealTraders
>
> I've just received a mailing from Jack Filkey re his Brass Ring
>system. Has anyone had any experiences with it? I welcome any thoughts
>or opinions you might have.
>
>Kevin
Here's an opinion. Don't ever buy a system that you receive in the mail.
Even if it produces a positive market edge, which is highly unlikely, you
will have to garner the mental and emotional skill to trade it. John
Henry, one of the top CTA's of all time, has had THREE year periods between
new highs. Do you think you would have confidence to sit for 36 months
without hitting a new equity high with a system you bought on a mailer?
This is not a compact disc club, this is a serious monetary investment.
Many new traders have this idea that one can without any work walk into the
trading arena, learn a technique, or buy a system, and sail off into the
sunset. Think about who you are trading against. Major investment
institutions, huge trading firms, large commercial players etc. You need
to make the time and money investment. Get a basic book on TA or one with
fundamental facts. Isolate one to test. Get enough back information to
test 500 or more trades. Test your signals with black and white rules that
are not broken. The final test must be done by hand not by some made up
continuous contract on a computer. In fact I would suggest testing
everything by hand because you will be less apt to curve fit. Write down
the month by month returns. Can you live with the swings? Go see a
trading psychologist. Take a class on statistics. Read everything you can
on money management. Research brokerages for the lowest costs. This does
not mean lowest commission. I don't care if you can get $3 round turns on
the internet, if you miss even one trade b/c you can't get through, it is
not worth it. Also, don't forget slippage, good fills are worth extra
commission. This should take several years. All the while you should be
saving at least $50-$100,000 for an initial trading stake. Now you will
maybe be prepared to make the money the weak lazy sheep are losing trading
"Darren Milburn's Golden Parachute".
sb
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