|
PureBytes Links
Trading Reference Links
|
It's possible there could be a legitimate reason but it is also possible
that someone could throw darts at a stock list and make a huge amount of
money. ie: *Anything* is *possible* but the question is, how
likely is it? We must all make decisions based on the probability
of things and not on the possibility of things. As an advocate of
methodologies, you surely would agree with this statement.
Bob
At 12:48 PM 3/27/2007 -0700, you wrote:
Bob,
Generally I agree with the content of your
post, especially concerning those methods that are actively sold through
mass advertising or direct mail. However, there may be legitimate reasons
for making a new technology available to others. Have you ever heard of
The Prediction Company? After developing a superior trading methodology
based on nonlinear dynamic modeling, this group of scientists sold it to
a major bank. This group had divergent interest and wished to pursue
other activities. (Read "The Predictors" by Thomas Bass.) Was
this a legitimate reason to sell?
Let's take another example. Active traders know
that it is a time consuming and often stressful occupation. Suppose an
individual developed an outstanding methodology and traded it
successfully for a number of years before being advised, for health
reasons, to reduce his activity. Would the desire to extract a stream of
income from the methodology without the day-to- day trading activity be a
legitimate reason to sell it to others?
And there is the issue of scale. Suppose the
same individual above traded a six figure portfolio successfully for a
number of years using a break-through technology. Then he was offered an
opportunity to apply it to a hundred million dollar fund. Would it be a
legitimate reason to sell?
So, perhaps you can agree that there may be
legitimate reasons for making new technology available to others. As
always a buyer should exercise due diligence but it is the value of the
product which should be questioned - not the motivation of the
seller.
Best Regards,
Jim
- ----- Original Message -----
- From: BobsKC
- To:
realtraders@xxxxxxxxxxxxxxx
- Sent: Tuesday, March 27, 2007 11:18 AM
- Subject: [RT] For newbies
- Some time ago, I changed the rules on our list to allow advertising as long
- as it didn't get out of hand and there was no pumping. I am pleased to say
- that it has not gotten out of hand and has been minimal and
- professional. Still, it is only a matter of common sense to think about
- trading systems and stock picking systems. If the person promoting their
- product really had a holy grail of trading, why would they need to sell it
- to you? Put another way, if you have the combination to the safe, why sell
- it to someone else? Just go in there and get all the gold you want, when
- you want. Selling the combination only puts people in your line of access
- and redefines how much gold there is to split since nothing is in endless
- supply.
- Having said that, I do not doubt the validity of those who are trying to
- sell trading systems. I only doubt the need to do it if their systems work
- so well. You should ask yourself these same questions before you begin
- writing checks.
- Hope everyone has a great trading week.
- Bob
__._,_.___
![]()
SPONSORED LINKS
__,_._,___
Attachment:
Description: Binary data
|