Daytrading chatroom that makes money

Discussion in 'Educational Resources' started by NickBarings, Aug 23, 2006.

  1. I had a close look.

    He posts the profits/loss for each month
    and they seem correct according the
    statements BUT

    he doesn't include the commissions
    which are 7$ RT per contract.
    He made minimum(because 17 days
    have a link to the statements that don't work) 474 trades with
    1 contract = 3318$ in commissions
    so that makes net profit = 5012.5 -
    3318 = 1694.5 $

    He is making on average 4.42 trades
    per day so for the 17 days that are
    missing that makes 17*4.42*7 = 527$
    extra commission to extract

    1694.5 - 527 = 1167$ NET

    so if you subscribed for 6 months
    at 299$ per month your cost would
    be 1794$
    To make up for this cost you would
    need to trade minimum 2 contracts
    to make 1167*2 = 2334$ to make
    a profit of 2334-1794 = 540$ in
    6 months or about 100$ per month.
    And this in the supposition that you
    can mimic his trades EXACTLY without

    You see how clever those guys are

    Can we call this a scam ?

    I leave this up to you.......:cool:
  2. i dont see any brokerage statements and frankly those results are pretty much unrealistic with 1 freakin' lot...and even if it was more than that i have a hard time believin' it.
  3. You have to click on the dates to get
    the statements.

    unrealistic, yes because he doesnt't
    subtract the commissions.

    Before commissions he is making
    about 16 points per month, that's
    realistic, I think
  4. i dont think he can really pull off $1000-1200 days with 1 lot. that's like 20es points a day, all in august when this mkt went nowhere fast. no fkin' way.

    edit; by the way or there aint no brokerage statements or i cannot access 'em from my come up blank.

    i'll say they are a fraud as all vendors are.
  5. mujoh


    When you look at the broker statements it is clear that he is adding contracts (in 1 lots) to a position. So his "1 lot trading" is simply misleading, often there are more contacts open. Also the net profit is significantly lower when you subtract the commissions. So his performance reports must be reviewed very carefully.
  6. i was able to click into 1 of those days and those statements look very broker name and they seem to have been written with an office typewriter. a child can make up somethin' more credible than that. BEWARE
  7. I ran a live-market room for a period of four years. In that time I learned a lot about traders and human nature in general. No lesson was clearer than this one: there isn't a person alive who has or ever will follow any trade advisory verbatim. The shorter-term and faster trades are, the less adherence there is.

    In any trade room with no exceptions, it is really organized chaos. A few people follow some of the entries, others miss - pass - balk at the first entry then wonder where they can chase it in, meanwhile the first bunch who followed the entries are up +0.5pts ES and wonder if they should take the $25 per contract & run, etc.

    By far the easiest recruitment for a trade room is promising the newbies they can just follow along and make money. I honestly believed that such a thing was possible, and tried to manage people = manage their money. In the end it was akin to herding cats instead of sheep.

    Nothing was accomplished, no one benefitted and I switched to an educational forum. Membership plunged, as the vast majority left with a giant sucking sound as they headed for the next premise of tag-a-long success.

    Fine with me... I wanted no part of creating failure. Peak months made $30k ~ $40k for operating the live-trade room, but I wouldn't do that again for any amount of money. In my opinion, live trade advisories cannot create long-term success and therefore cannot be sustained.

    Also, the focus on that took away from my focus on trading, which suffered. I never realized how much that was until the room was retired. Makes me wonder how any live-room operators can trade to their peak efficiency... I certainly could not.


    Is the vendor to blame? Depends on their true intentions. Are the newbies to blame? Depends on their degree of reality.

    Bottom line? The only long-term,<b> <i>independent = dependable</i></b> income is learning to trade and then trading to earn. A sea of people exist who have no desire to learn... they just want to earn. That collective group will always keep the trade-advisory hamster wheel churning.
  8. well said dude, i think you pretty much covered everything i was gonna say:D