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What Ira say's may well be true. He may have a system that does produce the
results he states. I would submit that I do not know that Ira does in fact
have such a system, only that it is possible to have systems that produce
%65+ returns. In fact, just simply investing can give much higher returns
than %80 (Dell, Microsoft, Amazon, Yahoo, Etc). In fact, given the
transaction costs, etc, one would probably have been much better off simply
putting $10,000 in one of the above. I beleive $10,000 invested in
Microsoft in 86? is worth well over $1,000,000 today, which of course is a
return of %10,000. $10,000 invested in AOL in 92 is worth 5.4 million today,
high of 8.7 million 4/99. If one has developed a system that will produce
good returns, he would be a fool to announce it to the world, for, as we
know, given the nature of the stock market, if everyone is doing it, it
would not work anymore.
In response to the trader who stated a good trader does not place the same
amount on every trade: this can be true, to some degree, but only if the
amounts are based on a system. To place trades with amounts based randomly
is asking for disaster. Some traders place a little more as they are
wiinning, a little less as they are losing, but never double, triple, from
trade to trade. The pros, managing millions, billions, usually place trades
of %5 to %10 of capital, or less, never more, for one does not know when
that certain disaster is sure to strike. It is not if it will happen, but
when. This is one of the main reasons beggining traders fail, for they
randomly place trades with differing amounts, and eventually lose all their
trading capital, and they do not have the backing that the money managers do
to weather the storms. Back to 9 to 5.
If you ask traders who are managing millions what their secret is for %40 to
%80 returns, don't expect to get an honest answer. Many times these firms
have invested millions in developing software to get these returns, and are
constantly modifing the software to match current market conditions. If you
knew where a pot of gold was, would you announce to the world it's location?
The answer is obvious.
Lastly, Unless Ira's system is purely mechanical, a majority of traders
would not be able to use it, for it would not "fit their mind", unless, of
course, they studied and studied it, until their mind, if possible, fit the
system. Most traders who make it make it because of a lot of hard work, and
after that a lot of more work. In this way, eventually, a system that they
develop will work, only because that system has been developed in their mind
as a winning system. They know the system, it's ins and outs, good and bad,
and to try to explain that system to another person would be practically
impossible, given all the variables involved in the stock market.
Kohath
> I teach the system to a few people a year and they are happy with the
result.
> Here is comment I received today form one student. I guess the Sheik is in
> reponse to some of todays posts.
>
> Sheik Ira
> Couldn't resist -- What am I doing? Trying to do what you are doing.
>
> I'm getting some good practice on ALO, and Yahoo.
>
> I'm long Yahoo LEAPS today. I expect to sell ATM calls on them soon for
> about $14/share. It had a 12+ pt run the last 3 days.
> Tim
>
> kohath wrote:
>
> > Ira, I was not trying to put your system down, if it does in fact exist,
I
> > was only stating the facts of the matter, plus a little sarcasm, since
most
> > don't beleive that it is possible to get those kinds of returns. Given
a
> > %60 gain per trade, those were the results. What you say is true, one
> > cannot keep investing at the rate stated in the previous email, but, it
does
> > seem rather impossible to most people to have such a system that gives
the
> > returns that you state. If you do have such a system, I would, as I
stated
> > previously, certainly like to know the mechanics of such a system. I
have
> > developed systems that deliver %65 to %80 wins, so I know that it is
> > possible to develop a Great system. I myself will not disclose to the
world
> > what the system is, only a few, for, if everyone knows the system, it
will
> > not work, given the nature of the market.
> >
> > Kohath
> >
> > ----- Original Message -----
> > From: Ira <ist@xxxxxx>
> > To: Real traders <realtraders@xxxxxxxxxxxx>
> > Sent: Tuesday, June 29, 1999 10:22 PM
> > Subject: systems
> >
> > > It appears that all have dreams of riches dancing in their heads and
no
> > > way to attain that goal. If you had $10,000,000 to invest, where
would
> > > you put it. Where would you find the liquidity you need to trade. As
> > > far as $415,000,000,000, even Bill Gates has to give some away because
> > > he hasn't found enough to buy let alone invest in.
> > >
> > > The immaturity of so many is nice. Everyone talks about rich, but
have
> > > any of you defined how much is enough? I did. I got there and said
> > > that is enough. I can do what ever I want whenever I want to. If I
had
> > > $1 billion more, could I do more? No. You can have 10 Ferraris, but
you
> > > can only drive one. How many $500 dinners can you eat in a week? Once
> > > you are mature enough to define what will be enough, then you might
find
> > > a system that can get you there. Most of you can't define a system,
> > > other then, it has to make money. Those that can't make money scream
> > > the loudest and decry that it can't be done, because their egos won't
> > > let them believe someone else can do what they can't.
> > >
> > > I have a 1:00PM tee time tomorrow, and a 10:30AM tee time on Thursday,
> > > you enjoy your good times and I will enjoy mine. Ira
> > >
> > >
>
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