How to be a Guru in 5 SUPER HARD Steps

[TheBestGuruEver]

1. Show audited results in every account ever managed.

2. Disclose everything financially, from selling products, trading, overhead, etc.. Actually have an income statement and balance sheet. Yes, like a real company.

3. Return all monies to all subscribers if you fail to make money during the calendar year. Yes, this means you actually have to perform.

4. Do not give advice to anyone until your paying subscribers heard it first. This, to me, seems like a conflict-of-interest and put your clients first.

5. Show results of every client (names withheld) so we know that your method can be transferred.

 

[MandelbrotSet]

That's an excellent list ... but it is never, ever, ever going to happen ... you heard it here first.

 

[alexandercho]

Correct me if I am wrong, but what does this have to do with psychology? Shouldn't this thread be in Career Trader?

 

[MandelbrotSet]

Since GURU's do nothing but run head-games, this is a perfect thread for the Psychology section.

 

[Nattdog]

"1. Show audited results in every account ever managed."

If they are not holding themselves out to the public as a CTA this seems pointless.

"2. Disclose everything financially, from selling products, trading, overhead, etc.. Actually have an income statement and balance sheet. Yes, like a real company."

What other private company does this? I will answer this for you: just about none. Seems like none of our business to me and would be a violation of their privacy.

"3. Return all monies to all subscribers if you fail to make money during the calendar year. Yes, this means you actually have to perform."

Why? Is this for people who never read the risk docs when opening their account? Trading is risky and individual traders must take responsibility. No one can promise profit and no responsible guru claims to offer this.

"4. Do not give advice to anyone until your paying subscribers heard it first. This, to me, seems like a conflict-of-interest and put your clients first. "

I am ok with this one.

"5. Show results of every client (names withheld) so we know that your method can be transferred."

Not relevant. No Guru can have any control at all over how their clients perform.


There is one simple criteria by which I would judge a guru:

Does the guru service have the ability to help me in my pursuit of profit at a cost that is less than the value their service creates?

Seems much more relevant to me.

 

[bwolinsky]

Quote from TheBestGuruEver:

1. Show audited results in every account ever managed.

2. Disclose everything financially, from selling products, trading, overhead, etc.. Actually have an income statement and balance sheet. Yes, like a real company.

3. Return all monies to all subscribers if you fail to make money during the calendar year. Yes, this means you actually have to perform.

4. Do not give advice to anyone until your paying subscribers heard it first. This, to me, seems like a conflict-of-interest and put your clients first.

5. Show results of every client (names withheld) so we know that your method can be transferred.

Audited results are available in many locations for legitimate traders. Per 3, that's not how finance works, gurudom aside. Net outperformance is how I prefer to measure myself, and even if that's down it is always in the context of the S&P500. Per 2, that's none of your business, and completely irrelevant if you have 1. Per 4, this is obvious. Per 5, this all goes back to 1. If you have 1, that's all you need.

 

[MandelbrotSet]

What is interesting is that ProfLogic, one of the worst offenders who fall into the GURU category, has never been able to fullfill even one of the criteria listed!

He has even gone so far as to use a number of different aliases (LogicMaster, Chart_Periocity, Logic, among others) on various trading internet forums to evade criticism and subtly promote his craped volume bars and (losing) trading methodology.

He's shown that he can't make money trading, so I gess he has to make it selling his books for hundreds of dollars and his seminars for thousands of dollars. :eek:

 

[alexandercho]

whoa, I never knew that wow is he really that bad of a trader so he tries to sell his information. What a loser? :eek:

 

[Equalizer]

I believe he also goes by the alias Charl A. Tan

 

[TheBestGuruEver]

I understand some of the criteria is harsh; however, these snake oil salesman need to be put to a higher standard.

If they are true sole proprietors, than let's see their W-2.

If they are in fact running a private company, of course they have financials. Yes, they don't have to tell us, but i'm sure they show them to people with more financial influence.

I really do want to know if they are renting, own a house, have good credit, etc.... These salespeople are usually crooks, and you will be able to see it when you find out they rent a studio for 400 a month.

They are not simply selling a commodity; car, shoes, food, etc... they are selling trust.

if the SEC was a million strong, most of these gurus would be sanctioned, imprisoned, fined, etc....

To sell crap for $2,000 and the student gets nothing, except a false sense of hope....well, that is unfair.

so the next time you go to buy a book on trading......1. go to the library first, and 2. think for a second about why this person wrote the book...oh yea, for money.

then put the book down.