parker_meridian:
"I've been curious about people who pay for trading room subscriptions to follow someone's calls. I guess I can see why they're so popular...most people are lazy and so many dream of making a quick buck.
But how do subscribers get over the very obvious question "If your so smart with the market why do you want my money?"
Obviously there is far more potential to make money in the market for a good trader then there would ever be flogging "market call" products, no matter how successful they are in attracting subscribers. I don't know much about them, but I would think most successful traders wouldn't want to give up the freedom and lifestyle successful trading brings to be committed to a trading room for a few extra bucks."
Interesting subject. Wonder if you ever heard of "If you can, do. If you can't do, teach. If you can't teach, consult?" This doesn't mean that consultants or teachers are any worse than the doers. It's just their nature that they prefer to sit back and think. That's why Presidents needs advisors, and we all need teachers.
Let's talk about trading. There are traders, there are analysts, there are gurus, and millions other who call themselves whatever they are that relate to trading the stock market.
If you give Abby Cohen $100K, a PC and Nasdaq level II quote with realtime trading machine, she either sits there, watching the screen, wiping sweat off her hands, and thinks, and thinks, until the closing bell rings... or she can enter IBM on the buy screen, click the mouse, smiling, going out for lunch while mumbling to herself: "IBM won't die for the next 30 years." Worse yet, she probably acts like one of us daytrader and fries your $100K in couple key strokes. Who said Abby doesn't know anything about trading stock market?
The most crucial element in trading is psychology. One can talk knowingly about the market, based on all kinds of goodies such as TA or FA or what have you, but trading also requires guts and intuition. It takes disciplines in emotional control. That is why it is so much easier to paper trade than to actually trade with your own money. And that is what big short moderator in a chat room are probably doing.
They look at the TA, armed with certain belief in FA then CALL. The more they call, the less emotional they become. It is not the money that is on the computer screen. It's the movement of the chart with few rules, experience, and the feeling of the direction. They are not trading. They are calling the moves, unemotionally. And guess, what, most of the time, it's the right call.
Let's print out a historical daily chart of any stock with MACD. Assume yourself as a moderator. Call buy when the lines are crossed up, and call sell when the lines are crossed down. Result? Congratulation, you are a successful moderator. And this is just an example of MACD. Imagine there are minute(s)-chart with tons of other TA indicators that one can combine to provide unlimited probabilities.
Trading a lonely job that makes one feels the need to communicate to let go the emotional bust in one's mind, to get confirmation of one's idea, to feel belong or whatsoever. That's why one need moderators (subscribed chat room) or companions (SI chat board). Sometimes, you know how the stock is going to, you just want second opinion, a pat on your shoulder, or some <ggg> from other board-companion.
Why don't moderators trade? Oh, they might, but why, when you can make money without big risk by being great-unemotional-paper-trader moderators? Let's look at Pristine Advanced Trading room: There are about 115 attendants at $750/month. That's about $1 millions per year. The room is hosted by two moderators. See the picture?
Same thing goes with the newsletter publisher. One of my favorite is Jerry favors, who was hotter than hot in 1998 with weekly appearance on CNBC, until he got too hot and burned in 1999. One of his daily service cost $40/month. With about 1000 subs, he has half million a year. He got an office with a secretary and answering service, and daily service update is secondary to his trader hotline that costs $2 per minutes, updated 4 times/day for about 3 minutes per update. I don't know if he trades, but if he does, he won't just get burned.
This isn't few extra buck that you mentioned, is it?
Anyway, it's the last 30 minute of trading. Let's cover some shorts and clear out the positions.
Good luck with your new thread. |
