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Posted by ChrisLynn on February 25, 2008, 1:55 pm
Hi Everyone,
I recently discovered a company that sends out trade signals via email
when they make trades in stock and options markets, I've signed up,
but I'm also looking for similar online services in other markets.
After watching this company's performance this month and looking over
their track record, I was pretty impressed. Their 60% annualized
options club return without margin in this year's market amazed me
though (you can view their performance at emeontech.com). Does anyone
know of any other services with performances like this in any other
markets?
Thanks,
Chris Lynn
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Posted by TB on February 25, 2008, 10:02 pm
ChrisLynn wrote:
> I recently discovered a company that sends out trade signals via email
> when they make trades in stock and options markets, I've signed up,
> but I'm also looking for similar online services in other markets.
>
> After watching this company's performance this month and looking over
> their track record, I was pretty impressed. Their 60% annualized
> options club return without margin in this year's market amazed me
> though (you can view their performance at ).
Chris, don't be impressed, be offended -- by someone trying to rip off
novice investors looking for a fast buck. I did not (and will not) look
up the specific link you posted, but 60% annualized returns are so
absurdly high that you can just dismiss them entirely. Did the emails
happen to mention something about the Nigerian lottery?
Caveat emptor, which is Latin for "if it worked, why would they tell you
about it?"
-Tad
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
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which we respond. For all of the other tips and suggestions, see "FROM THE
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Posted by joetaxpayer on February 25, 2008, 10:50 pm
> Chris, don't be impressed, be offended -- by someone trying to rip off
> novice investors looking for a fast buck. I did not (and will not) look
> up the specific link you posted, but 60% annualized returns are so
> absurdly high that you can just dismiss them entirely. Did the emails
> happen to mention something about the Nigerian lottery?
>
> Caveat emptor, which is Latin for "if it worked, why would they tell you
> about it?"
>
> -Tad
If I may add a bit here, returns bring risk, that's the nature of any
investment. A zero risk investment is defined as a short term T-bill,
and is now under 2%. You can get 3.6%+ in dividends in the DVY ETF, but
will take on the risk of the underlying stocks declining and losing
money there. There is no free lunch, chasing after these returns will
only lead to high losses.
JOE
www.blog.joetaxpayer.com
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Posted by dapperdobbs on February 26, 2008, 1:24 pm
Chris -
It looks like a software trading system (I did not register to look at
their portfolio). Software trading systems have been around since the
1980's, at least, including options programs. Generally, the idea of
options programs is to screen for over / under-priced options based on
the parameters, which may include things like stock volatility and
comparison of premiums. I never studied any system, but I'm sure each
system will vary in the tweaking.
Two key things to look for before handing over your "play
money" (trading is NOT investing - you should not put up more than you
can afford to lose):
** years of trading history in various market conditions (some systems
work for rising markets, some for falling markets, some for flat
markets) - make you sure you understand how they measure their return
and check its accuracy
** make sure the amount you put up to play is all you can lose.
You can of course get deeper, checking how often they tweak their
software, if they run different programs for different conditions, and
if they have a maximum loss level at which they liquidate such as 50%
and the variability or swings of profit to loss. The quality of their
disclosure is important, so the more clearly they present and the more
relevant their presentation, the more you know.
For further info on this genre you might try searching under "Trading
Systems" and variations thereof.
In any system, make sure you understand the parameters and what they
are doing with your money, and make sure you understand your loss
liability.
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
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which we respond. For all of the other tips and suggestions, see "FROM THE
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Posted by on February 26, 2008, 8:46 am
> ChrisLynn wrote:
> > I recently discovered a company that sends out trade signals via email
> > when they make trades in stock and options markets, I've signed up,
> > but I'm also looking for similar online services in other markets.
>
> > After watching this company's performance this month and looking over
> > their track record, I was pretty impressed. Their 60% annualized
> > options club return without margin in this year's market amazed me
> > though (you can view their performance at ).
>
> Chris, don't be impressed, be offended -- by someone trying to rip off
> novice investors looking for a fast buck. I did not (and will not) look
> up the specific link you posted, but 60% annualized returns are so
> absurdly high that you can just dismiss them entirely.
I would not be shocked if it is possible to open a futures trading
account, sell as many options on S&P 500 futures as margin
requirements permit, and earn 60% or more in some years. However, the
maximum possible loss for such a strategy would greatly exceed the
initial deposit into the futures account. One must understand how much
risk was taken to get the 60% return.
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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