How to Avoid Slimy Stock Traders
During my 15 years as a stock trader, I've met a wide variety of stock trading experts. Although most of them have been really great, as in any field there are always some that really wreck the profession's reputation. Sadly, this unfortunate minority of stock traders do the most damage with new investors and turn a lot of people with potential off of stock trading altogether. I would like to try to forewarn you about some of the slimy stock traders out there in the hopes of keeping you from having to go through what I did. So here are a couple of my stories, with a few here are a few of my experiences, and a couple pointers to avoid the same things yourself.
My worst experience was with the ultimate in slime, an encounter that changed my entire career. Through it, I learned the most influential lesson in my life: that some folks don't care who they hurt along the way, they are just in it for their own benefit. I also finally discovered that I could not be the same as that, and I established a core value through the experience: pass up any business opportunity that resulted in someone else getting hurt.
This service, like many others, provided a daily listing of recommended stocks to buy or sell short each day. And, like many others, they had impressive statistics to prove that, in most cases, the stocks they chose would do what they said they would. I was impressed, and said sign me up!
Unfortunately, unlike all the reputable stock trading services our there, this service had a personal agenda we subscribers didn't know about at the beginning. Their goal was to control stock prices for their own profit, not to help the subscriber group make good choices.
To illustrate, the owners of this service would buy IBM stock through their account. The next step was to recommend that the entire subscriber group buy IBM. All 3000 + subscribers started purchasing IBM, and the stock price would increase from the activity. When the slime was satisfied that the price had increased enough for them to make the profit they desired, they would cash in.
It was a blow to realize that the stock trading service I had placed my faith in was using us subscribers to front run their own trades. They could care less about the success of their subscribers as they had led us to believe, but only their own profit. And, on top of all that, we were paying the slime subscription fees to do it! I just couldn't believe it.
Now true, most stock trading services would never conduct business in that manner. But many do act in an equally slimy manner by trying to convince the new trader that stock trading is much too dangerous to do alone. They work hard to convince you that in order to be profitable trading stocks you must subscribe to their expensive service and let them do all the work for you.
True, stock trading is complicated at first, until you have found a system that is right for you. But anyone who tells you that you can never learn enough to handle it yourself at some point, is just trying to milk you for the monthly fees. These systems are typically pretty generic and don't take into consideration your personal risk tolerance or trading preferences.
Now granted, some people don't want to bother with stock trading on their own, and are content to pay the monthly fee, be told what to trade, and be right some of the time. While the return is usually okay, I have found that finding a system that works and structuring it around your risk tolerance level will always result in higher returns and a more satisfactory trading experience.
It does take some investigation to find a resource that will get you started without taking over. They are there, however, and you will be happy to find that they will take the slime out of the profession and help you gain the skills you need to achieve success at stock trading. Follow this advice, and you will appreciate the outcome for many years to come. - 23221
My worst experience was with the ultimate in slime, an encounter that changed my entire career. Through it, I learned the most influential lesson in my life: that some folks don't care who they hurt along the way, they are just in it for their own benefit. I also finally discovered that I could not be the same as that, and I established a core value through the experience: pass up any business opportunity that resulted in someone else getting hurt.
This service, like many others, provided a daily listing of recommended stocks to buy or sell short each day. And, like many others, they had impressive statistics to prove that, in most cases, the stocks they chose would do what they said they would. I was impressed, and said sign me up!
Unfortunately, unlike all the reputable stock trading services our there, this service had a personal agenda we subscribers didn't know about at the beginning. Their goal was to control stock prices for their own profit, not to help the subscriber group make good choices.
To illustrate, the owners of this service would buy IBM stock through their account. The next step was to recommend that the entire subscriber group buy IBM. All 3000 + subscribers started purchasing IBM, and the stock price would increase from the activity. When the slime was satisfied that the price had increased enough for them to make the profit they desired, they would cash in.
It was a blow to realize that the stock trading service I had placed my faith in was using us subscribers to front run their own trades. They could care less about the success of their subscribers as they had led us to believe, but only their own profit. And, on top of all that, we were paying the slime subscription fees to do it! I just couldn't believe it.
Now true, most stock trading services would never conduct business in that manner. But many do act in an equally slimy manner by trying to convince the new trader that stock trading is much too dangerous to do alone. They work hard to convince you that in order to be profitable trading stocks you must subscribe to their expensive service and let them do all the work for you.
True, stock trading is complicated at first, until you have found a system that is right for you. But anyone who tells you that you can never learn enough to handle it yourself at some point, is just trying to milk you for the monthly fees. These systems are typically pretty generic and don't take into consideration your personal risk tolerance or trading preferences.
Now granted, some people don't want to bother with stock trading on their own, and are content to pay the monthly fee, be told what to trade, and be right some of the time. While the return is usually okay, I have found that finding a system that works and structuring it around your risk tolerance level will always result in higher returns and a more satisfactory trading experience.
It does take some investigation to find a resource that will get you started without taking over. They are there, however, and you will be happy to find that they will take the slime out of the profession and help you gain the skills you need to achieve success at stock trading. Follow this advice, and you will appreciate the outcome for many years to come. - 23221
About the Author:
W. Alan Gay has been a stock trader and mentor for fifteen years. His free report describes Alan's journey to becoming successful at trading stocks and gives useful techniques he and his students have used to consistently trade profitably. Click to obtain a free copy of his report and learn more about how you could be trading stocks profitably in as little as two weeks.
posted by X - Men @ 12:28 AM
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