Why not use a web cam for legitamcy?

Monkey Boy · Dec 30, 2008

Quote from Gambitman:

There are many ways to legitimize your results. Trading rooms do not want to do that. They would be empty within a week. Until you have actually tried to follow a room, trade for trade and mirror the results that they are advertising you have no idea how impossible it really is. I am not saying that you won't get value from a room, it just won't be from trying to take all their calls, which will leave you in the poor house.

For example in an SP room all the guru needs to do is fudge his numbers by (I haven't traded SP for a few years so I am talking about my experience 2002-2005) a couple of ticks per trade and he his well on his way to full fledged guru status.

Here is the typical morning in your typical SP room.

"I am looking to sell somewhere above 96.5 as long as 99 holds" Market surges to 98.00 and then falls back to quickly to 97 (given the speed with which the SP moves, the move from 98 back down to 97 may take just a few seconds so the timing appears very close.) Guru announces filled on 97.25 and 97.75 didn't get filled on any 98's.(Makes him look very honest.) This gives him an enormous edge especially if he or she is using smaller targets. If it surges to 99.25 and immediately falls back he explains that "1 tick doesn't necessarily mean that it is broken, trading is part art and part science, you are over-thinking things." If however it goes to 01 in that surge, he is all out at 9.25 or 9.5 because ,"you have to have discipline, as soon as 99 broke I was getting out." Lucky for him he shorted right up against the 99 so he only lost a point or so. "How cool is this, we lose a point when we are wrong but we make 3 or 4 when we are right." The poor guy that sold 96.75 and took it off at 01 (and that is what will happen) and has the nerve to complain that he lost 4.25 pts not 1 is criticized for being undisciplined, lacking patience, and just needs "more time in the room to get what we do." So then next the time the guru announces a trade "short above 96.5" the poor follower puts an order at 98.25. The market pushes to 97 and starts dropping like a rock. The guru begins hooting and hollering about what a great call he just made. Market is screaming down and he makes 8 pts. He then explains to the room how we took that little loss for a few ticks and now we just made 8 pts, what a great way to make a living. Meanwhile poor guy is down 4.25 pts and didn't get filled on the good trade so he is very frustrated, especially because it seems that everyone in the room is up 7 or 8 pts. Next trade the guru says buy below 82 and we want 80 to hold. So poor guy buys at 81.5 market chops around for a minute and then drops to 79.5 for a fraction of a second. Well poor guy remembering his 4.25 pt loss from earlier and the lecture from guru about maintaining discipline immediately takes off at 79.5 for another 2 pt loss. Market bounces 3 or 4 pts and guru announces a 1.5 pt winner. "He explains, "I was going to take off, but then I saw some buying come into the Nasdaq so I held off for just a second, trading is part art and part science you know." Now guru is announcing 9 pts for the day and poor guy is down 6.25. Guru throws in a, "you guys have been here all day listening to these calls, we made 9pts on 1 ES contract, that pays for this room for the month, don't take my word for it take the free trial and write down my trades and you will see how good we are at this."

What a racket.
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Excellent post.

brianp5539 · Dec 30, 2008

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Why not use a web cam for legitamcy?

Monkey Boy

brianp5539