more trading frauds

Lol, yeah, did you expect otherwise? A guy who made a fortune trading now wants to share his secret sauce with the public? Then why is he driving each early morning to the TV station to earn couple bucks talking on the air? Or is he doing it in his PJs from home in between two brilliant options trades? My hunch is he would be waiting tables at the lake right now if it was not for CNBC.

What people do always tells you more than what they say they do and how they do.

kut2k2 said:
I read that the Najarians' book "How We Trade Options" doesn't even qualify as a decent book for beginners, much less teach the advanced techniques it is claimed to teach. Amazing how often commercials for that pos are aired on CNBC. That's a scam, for sure.
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When people say that trading is a skill, they mean that it's something that can be learned through repetition and practice until it is virtually automatic, like Federer hitting a backhand. This is a quote from Bloomberg about Steve Cohen:

"Cohen buys and sells eminis . . . He does that all day, every day, completely intuitively the former employee says."

Is that what most successful hedge funds do? Not really. Based on what we know, it's probably not what Steve Cohen does. Here is what hedge funds do:

"James Dinan had a guy at the SEC reference room who would fax over filings a day before most people had access to them."
 
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Handle123 said:
It is funny, only three books that I have ever recommended were written before 1980 by John Hill 1977/78
http://futurestruth.com/wpftruth/books
and Bible of charting by Magee and Edwards 1948.
http://knowledgebase.mta.org/?fusea...esourceID=13D415EC-EE10-3BCF-3447AE4BADFB8263
I think 99% of what been written since then have limited amount of education. BUT if they give you just a small tidbit that can add to your Trading Plan or gives you are new idea that ends up in your Trading Plan, then it was worth it.

Take for instance Eugene Nofri's book "The Congestion Phase System" 1975, it was written to be a system, but it was designed for trading Wheat on daily bars, so someone will take info making it work for day trading and it might not work for say Crude Oil which is a running market and one that doesn't have much congestive areas. And if one tests it out, doesn't work to what the author said to be 75%. So in one regard one would say book is worthless, but if you read it, you can see where Toby Crabel got his ideas of so many closes in a row and market will do this.
Fred Gehm wrote an article discussing Nofri's book
http://www.mta.org/eweb/docs/Issues/38 - 1991 Fall.pdf

I tend to like to buy books most that are unaware they even written and some almost impossible to find.
http://www.crawfordperspectives.com/comm_stock.html
Or articles not normally read by others
http://www.mta.org/eweb/docs/Issues/65 - 2008.pdf
http://www.stocktables.com/ch/tradingcups.pdf

But who truly has the time to write a book if you are trading? And if you have taken long time to develop a good Trading Plan, who in their right mind would write a book about it? What I often see is first book is informative and then all the ones that come after are worth so much less.
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Magee Edwards was a good one. That was written back when the purpose of TA was to track human behavior. Nowadays, TA just tracks itself.
 
billyjoerob said:
Books on trading, I've read too many. One thing I've noticed more and more is that these traders tend not to be actual successful traders. Let's review:

Jonathan Hoenig, Capitalist Pig Guide to Investing

It's well documented that the CP has been losing money for years. Search old threads for this

Harrison, Other Side of WS

This book really surprised me. Harrison was negative during the 2003 bull market and then his investors pulled out, permanently. It appears he lost most of the money he made in the 90s bull market (and his record wasn't so sterling there either, but he happened to be in the right place). Remember, this is a guy who runs a trading site. And he actually gives pretty sound advice, imo. Giving advice and following it are not the same thing.

Pham, The Big Trade

This is a book advising a sort of mechanical momentum strategy. It turns out the strategy worked in the bull market but later wiped the author out in the bear market. My eyeballs nearly fell out when I read that, 2/3s of the way through the book. No problem, publish book anyway.


The lesson here is obvious: there are vanishing few trading gurus. How many of the "Fast Money" traders are decent traders? I'm convinced the worst of the bunch are the Najarians, though I have no evidence.

In any other field, the experts know more than the novices. Only in trading is that not the case. Trading is not a skill, like cooking or tennis. Instead, it's more like dieting: everybody knows what to do. That's not the hard part. The hard part is sticking to the plan.
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"Trading is not a skill, like cooking or tennis. Instead, it's more like dieting: everybody knows what to do. That's not the hard part. The hard part is sticking to the plan."

Well said billyjoerob....
 
volpunter said:
Lol, yeah, did you expect otherwise? A guy who made a fortune trading now wants to share his secret sauce with the public? Then why is he driving each early morning to the TV station to earn couple bucks talking on the air? Or is he doing it in his PJs from home in between two brilliant options trades? My hunch is he would be waiting tables at the lake right now if it was not for CNBC.

What people do always tells you more than what they say they do and how they do.
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I used to think this as well.

Most gurus who are selling cant really trade, that is true.

But an expert trader can average 20% to 60% a year with lots of spare time.

What do you fill your time with? You could get greedy and try and make even more money from trading.
But if you do that you probably going to start forcing trades and taking sub optimal trade setups.

No you probably wanna do something fun, play golf or sit on the beech or maybe do TV and radio if that is your idea of fun, as long as its not too much hard work and doesnt take away from trading then why not?
 
southall said:
I used to think this as well.

Most gurus who are selling cant really trade, that is true.

But an expert trader can average 20% to 60% a year with lots of spare time.

What do you fill your time with? You could get greedy and try and make even more money from trading.
But if you do that you probably going to start forcing trades and taking sub optimal trade setups.

No you probably wanna do something fun, play golf or sit on the beech or maybe do TV and radio if that is your idea of fun, as long as its not too much hard work and doesnt take away from trading then why not?
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Southall,

Please give me some suggestions on how you can average 20-60% yearly, and have free time. That would suite me fine :) I have started following you and will go back in time to read your post and see if you hint at how you trade successfully. Thanks for posting and sharing..
 
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