ChatRoom Operations

Discussion in 'Trading' started by Jeffrey, Jan 12, 2002.

  1. Jeffrey



    I am curious about how chatroom are regulated. I have been to a couple pay sites for their trial periods, as well as some free sites. Each have their disclosure statements to cover themselves.

    Some sites make it clear that you are responsible to manage the trade after a trigger is signaled. It is said that the S.E.C. rules prevent the recommendation, or advice, for the sale or purchase of specific securities.

    I observed two types of operations:

    1. The calls are signaled in a couple rooms that I observed preceded by "Consider Buy" or "Consider Sell", for example. Which leaves the ultimate decision being made without a recommendation.

    2. Video presentation by Bo, stating where the room got in and how they scaled out of the position. After seeing the video clips, I understand that the members are walked through the trade from the beginning to the end giving them a thorough educating as to why the order executions were made.

    Why are some rooms able to walk you through a trade, and others say that the rules prevent them from doing so?

    I have been told that I should start a room. That is not a consideration in my trading plan, but it has me thinking more about what extent would I go about it should the option become manageable.(Like after retirement)

  2. TonyOz


    I didn't know that they were regulated. I thought they (their attorneys) make the rules which they follow.

    I don't run a chat room, so I don't really know.

    Good Luck

  3. Hypothetically, if I went to law school I would say that you only have to disclose that you are not a registered investment advisor, and that the information contained in your material (website, radio show, book) is for entertainment purposes only.

    And that disclaimer would have to be immediate: the beginning of your radio show (Cramer) the beginning of your book (think of any) or your website (such as the ones you have mentioned)....

  4. Jeffrey


    Thanks TonyOZ and Barbarian.
    Your input is appreciated.

    I didn't think that chatrooms, nor anybody, were regulated, but starting with my Wade Cook education:mad: , I was lead to believe that they were watched besides covering themselves with discloser statement(s).(No complaints; That is where I got my start while learning about my emotions) I had to learn somehow, or someone had to teach me. :D I guess you could say that I was a virgin.

    Then I have heard the same "excuse" given in a chat room as to why trades were not followed through after the call. Or simply, "We're not going to hold your hand", as if one does not learn that way. pardon me, but there are stages, or levels, of development.

    Again, thanks. My interest in chatrooms purposes is not to capitalize on the demand(clouded by enthusiasm), but to further either confirm, or understand, human behavior(The herd)

    When, and/or if, I get to a certain point in life where I have the desire to help others, I believe I will be a very good teacher without corporate influences.( My way, or no way)