You know what I don't get? I don't get why all the people who attend these rooms looking for easy-to-follow calls don't just use some logic. Think about it guys, here's what we know: 1. A guru is claiming to give you a 100% profitable system that if you only followed it, will let you make money consistently. 2. He or she trades with a relatively small lot size, like 5-10 lots on the ES, and gives away the calls to anyone who wants them for $500 per month. Do you people realize how liquid the S&P 500 is? If any of these so-called gurus were actually capable of successfully doing what they claim, they could very easily just gradually scale up their size until they were trading 200 or even 500 lots at a time. Nothing would stop them from doing this, they wouldn't run out of liquidity on the e-mini. Now, if someone can extract (let's say) 3-4 points consistently on a daily basis from the S&P using a 500 lot trade size, do you realize how much money that is? That is 500 x 4 pts x $50 = $100,000. PER DAY. If you had a real, tried-and-tested system that could reliably extract that much money out of the S&P on a daily basis, would you choose to (a) Trade it yourself and guard the secret closely, accumulating $2 million per month or $24 million per year, or (b) Start a chat room where you let a whole bunch of other people start to take the exact same trades that you are taking, and charge them $500 per month each? Let's say you have 100 students. That's $50,000 per month. Your system, if it actually worked, would allow you to make $100,000 PER DAY, and yet here you are giving it away for $50,000 per month or $600,000 per year, on top of all the hassle of emailing with these people back and forth, running the room, answering questions, and so on. DOES THIS ACTUALLY MAKE ANY FRIGGIN' SENSE TO ANY OF YOU STUDENTS? The numbers don't add up. Why would someone give away a system that could make them tens of millions per year for only 2% of that total, on top of the all the trouble involved in running a room? The reason these guys are giving away their so-called "no-fail" systems is because they don't really work. It's really that simple. If they actually knew what they were doing, they would be making tens of millions themselves instead of wasting their time on some stupid internet chat room for chump change. Use your brains, guys - if you expect someone to actually give you a set of calls day after day that you are just going to be able to follow blindly and make money, you will never find it. All you will find is a string of people who can't actually trade all that well themselves, trying to make some money off of you. Anyone who could actually do what some of these guys claim would never bother to show you their system anyways, and sure as hell wouldn't let you front-run their calls. How many so-called gurus do you have to go through before you figure out this simple piece of logic?
Good post FB. People should think logically. I followed the same logic but came to a different conclusion: running a trading room has always more profit potential than actual trading. think about it: you trade 10 contracts, a system that has 1.5-to-1 reward-to-risk, with 80% positive expectancy. It is a trend following system and you expect 2 trades on average a week with average profit of 3 points a trade. Sounds good doesn't it? Not if you crunch the numbers. First you trade 10 contracts, you need a 2 point stop. that's 20 point risk with one trade, or $1000. Risk of ruin protection is generally 2% max a trade This means you need $50.000 in funds. But what when you get consecutive losers? 2 points stop is pretty small. Consecutive stop-outs should occur regularly. Let's say you want to protect for 5 consecutive stop-outs. then $5000 is the risk. You would need $250k in funds for trading 10 contracts. But the whole picture is you do make money. It is a winning system isn't it? 3 points 10 contracts is $1500 profit. 8 trades a month is $12k profit. However you lose 20% of trades. So that means You lose say 1.66 trades a month but win 6.33 trades a month. The result is -1660+9495= about $8000 a month. You make a comfortable living of $8000 a month with at least $250k capital. I think that's reasonable. Now let's say you start a trading room. Subscription is $500. To make $8000 a month you need 16 subscriptions. ONLY 16 SUBSCRIPTIONS! Sure, you have expenses (website, webinar software), but you have the same expenses when your trading (data-fees, exchange fees) You make a comfortable living $8000 a month, without capital required. Sure you say, but what about the scalability of trading? What about the scalability of trading rooms? More income is one subscription away! You might think why not scale up in size and trade their winning system themselves? The answer is it has risk. The guru's don't know themselves if their system is scalable. They have never traded it with size, because they frankly, don't have the size. It is the big unknown. If you think about it, most of the billionaires are rich because they sold products to the masses. Trading for yourself is definately not the same thing.
It's obvious from his posts that Joe4422 is a plant ... have fun shilling for JC, thanks for outting yourself with your obvious posts.
If he is shilling. he is not shilling for JC, he is shilling for Norrin. May be he is norrin himself or the wife! Norrin's regular room may have well gone to the dogs. This week has not been good so far. The beginning of the END!
Joe4422, a quick question about Norrin's room. Any reason the webinar chat function don't allow room members to chat with each other. Or to see the others comments or questions?? I know the Webinar provider has the capability to do it! Seems very, very odd! Why shouldn't people in the room be able to see each others comments & questions? Or did someone tell me wrong?? Thanks.
lol - if he allows comments to be seen. they will all see each other's remarks about the room being neglected. Remember, Norrin has to attend to his $500 room first. These guys are trading at least 8 cars each. It can easily blow their 10k accounts! I can imagine his stress even if he doesn't say much in that $500/mo room. I don't buy it for a minute that the $500/mo room use a system that he developed over 6 years. It is more likely he calls out the better bets in the high price room. The regular room gets those calls late or never. Regular room may get some hot potatos now and then. It has not work out this week. Another room going to the dogs.
Hey Jreality, I believe you are no longer a part of that unnamed room(I know which one)? Room was really a big disappoint to me, I thought a honest room at last! But the dark side took over I think. Out of respect for you I won't name it here. But, if it was me & I thought they suckered me in, or misrepresented themselves in any way I would blast the hell out of them on every forum I could!! Mainly to try to keep anyone else from being suckered in!! But, hey that is just me!! Just a thought! The main reason these places continue to exist is because no one exposes them for what they are!!