Super Accurate Intraday Indicators

[ForexTraderX 10]

^^

All that stuff is worthless. All that time trying to evaluate the person's secondary claims of large houses and large bank accounts would be better spent evaluating the strategy to see if it has any merit. The strategy and the person implementing it should be completely independent if the strategy is mechanical.

 

No, it's not worthless. If a person says they make $1,000,000 trading futures, and I they sign an IRS income tax release form, and I see that indeed, they made $1,000,000 trading futures, because the tax amount matches what it would be for a futures trader, this is usually very good evidence that they are what they say they are. It is no guarantee that they will continue such performance, I agree with that. But I know of no one with a mechanical strategy that will provide information on that unless a person is buying it for themselves, for a very large sum. If you've found such a person or strategy, well, kudos.

 

But Just because you may not be comfortable investing your money with an outside party, doesn't mean that it isn't a good idea, depending on who a person is, and what their goals are. And obviously not all market speculators are scam artists. Just the vast majority of ones you will find marketing themselves on the internet happen to be. So, there are some tools that a person can use to determine if someone is real, or fake. Nothing is 100% of course.... but so many online fall so incredibly short of even the most basic due diligence, it's pathetic. And of course those are the ones we hear who lose it all or screw up. There are so many of them after all... but I've known others who I have trusted and over all have had a good experience. But I trusted them only after I conducted a thorough background and fact check complete with tax statements, bank statements, and sometimes a little online private investigation.

 

As someone who has both invested in various entrepreneural projects, and had many parties invest in my own entrepreneural projects, it's NEVER 100%. I've made some investments that turned out bad, but overall, it's been very rewarding. I don't see an investment in a person who can prove what they claim in the market to be any different than an out-of-state real estate investment, or investing in a startup franchise.

 

But also, at least if you live in the U.S.... many of these investments and opportunities are not available to a person who doesn't have the proper income or net worth qualifications... and of course, NONE of them are offering their services for $100 a month, or a 1 time payment of $299, or having just won first place out of $1000 in the alpari demo play monopoly money psudo-trader competition, or whatever.

 

FTX

Edited October 21, 2012 by ForexTraderX

[BlueHorseshoe 10]

But also, at least if you live in the U.S.... many of these investments and opportunities are not available to a person who doesn't have the proper income or net worth qualifications...

 

There are ways around that to a certain extent, aren't there - commodity pools etc, or just signing a load of waivers?

 

BlueHorseshoe

[ForexTraderX 10]

There are ways around that to a certain extent, aren't there - commodity pools etc, or just signing a load of waivers?

 

BlueHorseshoe

 

Where there's a will, there's a way...

 

but I wouldn't advise it. If something is slated and marketd to the accredited investor sort... there usually is a good reason. One reason is that many such investments are of the "go big or go home" variety. For example, you invest in oil rights for a particular piece of property. Well, 90% of these don't push up enough oil to justify digging a well. You lose all your investment on these. But maybe 5%-10% will hit "black gold", and you'll make 25X - 100X your investment.

 

People that invest in such are doing so full well knowing that they will lose their 100K about 10-20 times before they see a return. But when they do, it'll be 2.5-10 million or more.

 

This is ONLY an example... but it illustrates the point. They are swinging for the fences, and even a loss isn't all bad, because it becomes a tax write off for another investment under their corporate umbrella that has too much profit, and they need to offset some with the losses incurred from the highly speculative oil deal that lost money.

 

This is why I don't ever recommend anyone who doesn't actually fit the requirements to be an accredited investor even try to invest in such sophisticated deals. They simply don't understand that the game at that level is often times about a home run, or a total loss.

 

When the day comes that you can lose 50K, 10 times over, and not worry too much because you actually needed the losses to offset your tax consequences on a different, profitable investment... well, that's the day you may want to consider some of the more exotic, restricted investments. If you can't lose 50K 10 times over this year, and actually benefit from it...well, there are better, safer, more reliable investments.

 

Like Day Trading, just to name one

 

FTX