The one thing that is lacking with guru sites is the lack of visible accountability. I wouldn't mind paying for a stock picking service provided there is a clear track record on the success of the recommended trades.
I've not met one stock picking firm, or even an established brokerage firm that maintains a portfolio to clearly demonstrate the the results of their recommendations. Some years ago, a major brokerage firm did this, starting with a portfolio of $100,000 and accounting for all the buy and sell recommendations. Guess what, after about a year, it abandoned the project because the portfolio was under performing.
I think stock-picking gurus need not fear to show clear accountability of their skills. Start with say, $50,000 and account for the results of their recommended entry and exit trade decisions. Throwing 10 stocks every morning does not cut it. Instead, trade every stock mentioned, and account for the profit/loss of each trade.
Throwing 10 stocks each morning into the club and having people pick their choices does not show a leader's stock picking abilities. There could be a variety of factors when participants come out net winners: participants level of experience and knowledge, psychological make-up, dynamics of interaction in a trading group, etc.
So, the challenge to the fee collecting stock picking gurus ... maintain a portfolio to clearly show the results of your trading skills in a measured timeframe.
Any takers? |
