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Sean,
IMHO Commodities are much safer than stocks and the
leverage makes a big difference in profitability versus risk. Be very
careful of system vendors claims and remember they are salesmen first and system
developers second. There are a tremendous number of charlatans in the
Futures industry and a large number of those are so called system vendors.
The most profitable and consistently reliable system you will ever find is
the one you develop yourself. Think about this:
1. If their system will consistently yield these
kinds of returns why aren't they trading it instead of selling it ?
2. Why would they want to deal with the sales and
support hassles for less money ? They can't get 10 fold returns selling
software.
3. Kind of makes you wonder doesn't it ?
If they claim a 10 fold increase within a year
(highly unlikely if not impossible for most) ask then to provide you with proof
like:
1. Account statements showing this kind of
consistent return, verified by an independent auditor not compensated by the
vendor.
2. Verification of those account statements with
the clearing firm and the broker involved.
3. Also be sure and ask for their NFA id
number and check them out through the NFA.
If you think stocks are not high risk just remember
"Enron" and "InTrust". It's a fairly easy task for a creative accountant
to phony up the books (in my accounting days we used to call it cooking the
books) and make the financial statements of a corporation appear any way they
want them too. Corporations large and small do it all the time to obtain
better credit standings and to get a better rating from the wall street
analysts. I worked in corporate america for over 30 years and in that
environment you give a man a choice between honesty and cash and roughly 95% of
corporate executives will take the cash.
It is a lot harder to manipulate the supply and
demand statistics for the Futures markets than it is to manipulate corporate
financial statements. You will never see any of my money in the stock
market, Futures and Futures Options are the best game in town.
Tom
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Sean Cassidy
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Tuesday, February 19, 2002 1:15
AM
Subject: [RT] Stocks Versus
Commodities?????
Are futures trading systems generally more stable
than stock systems? I just ran into a system that promised amazing returns for
commodities. They claim an account starting at about $35000 can grow by almost
10 fold within a year with their system and aggressive money management
software. I have heard, from sales people, that these types of returns are
attainable with a good system. Sounds too good to be true. Or is that because
they are so highly leverage with commodities, this is all new to me. With my
$35000 investment, do I actually own $500,000 worth of futures contracts, for
example? Stocks and financial markets seem unpredictable...and erratic
to me, especiallly lately
SeanTo
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