Trading Chatrooms

[rcanfiel]

Quote from dalaialama:

I've been in the room, he's the real deal.. his partner Saul is up behind the glass trading 200-500 cars at a time.. he told everyone to go long one day because he spied the worst broker in the pits selling, was a funny moment and sure enough the market took off.. the sharks love him and he goes around talking to them to get a feel for the market..and it is a bit of a buzz having the trading room right there on the floor of the CBOT

Nothing said in this post is particularly convincing. One event is anecdotal. As to "Saul's" performance, it remains questionable, as you have only given testimony that he exists, is lovable, trades, and has sharp eyes.

 

[rcanfiel]

Quote from gnome:

The Investment Advisor's Act of 1940 is the one which governs RIAs. (Blogs and websites not necessarily regulated by the 1940 Act.) It allows for the "advertisement of performance", but only if ALL of it is disclosed. That is, if you claim ANY performance for any period, you must disclose your ENTIRE track record.

Do you recall ever seeing an RIA track record advertised? Nooooo. (I once had a story written about me in a local business journal where my track record was disclosed. Within 10 days, the SEC was at my door performing an audit "for cause". Fortunately the story was complete and accurate, so the audit ended up being only a nuisance.)

If you are looking for performance before plunking down your cash, suggest you follow the 1940 Act's requirements about track records.

Cannot speak for stocks. In futures trading (CFTC), a website advisory/trading room can publish a complete track record, as long as they have a disclaimer that it is hypothetical. I suspect the same goes for stock sites, but I do not trade these.

In any event, they can publish archives of all their calls. Absence of this or "samplings" renders the entire site questionable. I have looked at many of these sites, and lack of records or complete archives goes hand in hand with lemons. After all, only a couple in a hundred ever have longterm outperform ability.

 

[gnome]

Quote from rcanfiel:

"... In futures trading (CFTC), a website advisory/trading room can publish a complete track record, as long as they have a disclaimer that it is hypothetical...."

The First Amendment allows anybody to say anything... factual, fanciful or hypothetical. However, (1) Those registered with securities authorities have their rights in these regards superseded by regulation, and (2) a hypothetical track record has no "meat on the bone".

Besides the fact that "past performance is not a guarantee of future performance", one would be foolish to entrust his assets to anyone or anything which has not demonstrated competence with actual prior trades, don't you agree?

 

[edil]

Quote from JWS11:

Can anyone suggest a good stock and/or emini trading chatroom - preferably where signals are given in time to be taken, like Pristine, Reality Trader, and LBR Group. Your favorite ones, as well as any insight or guidance would be appreciated. TIA

You can try the Index Futures chat room here in our beloved EliteTrader site itself.

The traders do not give trade signals per se but you can observe them trade the YM and ES realtime. (no fee required).

 

[cashmoney69]

heres a chat log from the room i trade in

 

[rcanfiel]

Quote from gnome:

The First Amendment allows anybody to say anything... factual, fanciful or hypothetical. However, (1) Those registered with securities authorities have their rights in these regards superseded by regulation, and (2) a hypothetical track record has no "meat on the bone".

Besides the fact that "past performance is not a guarantee of future performance", one would be foolish to entrust his assets to anyone or anything which has not demonstrated competence with actual prior trades, don't you agree?

Futures (and probably stock) advisory services are required to do nothing more than publish the required proper disclaimer, and not tread into the arena of CTA (such as offering any kind of personalized advice to subscribers. This right was determined by the courts despite efforts of the CFTC. What people think about this is irrelevant, as long as the publisher follows the rules.

I suspect that those who register still have the same right as publishers, as long as they don't hold themselves out as CTAs. However, I do not know by "register" if you mean as CTAs-RIAs, in relationship to a brokerage, or with the NFA, or something else.

As to foolishness, I would say 1-2 in a hundred advisories have any real outperform value in the longterm.