About a week ago I received a newsletter from a well-known trader that has won the World Cup Trading Championship 7x. I am not writing this to bash Chuck Hughes himself as he currently has and has accumulated more money through trading than I ever will. I am writing this for the newer trader to be skeptical of receiving information via mail or email of stats like these. In high school and to this day I always liked Diogenes. He was a Greek philosopher known to be a cynic that went through the streets of Athens with a lamp during the day in search for an honest man. Why many people may consider cynicism a fault, I believe it is a good trait especially in the military or law as you it will always allow you to keep your guard up. While this applies to the job fields above, it also applies to trading.
Again, I am not here to bash Chuck Hughes himself as I have received mail coupled with email from other traders alike. The problem I have is that these tend to target newer traders that are probably not starting with 100k but instead are starting with 5k. There is one thing I learned through trading, allow yourself enough capital to be wrong more often and hone your skills.
Below is a copy of the stock recommendation I received today in an email I have setup specifically for those “enter your email here to receive” type sites and I received this approximately 20-page newsletter in the mail about a week ago:
Below is an hourly chart going back 2 weeks showing the price action and probable run-up off this recommendation:
Now this type of analysis is not my thing and I leave this to other traders that specialize in pump & dumps. My problem is that well-known traders (with successful records) come in and push out these recommendations to lure in honest folk that are trying to learn the game. These traders probably have not learned yet that this game is not easy and a lucky trade or two will probably end in loss in the long run.
My recommendation to newer traders is that if it looks too good to be true and a system is selling for the great price of $99 (arbitrary but you get the point) then you are probably getting what you paid for. I have learned through subscribing that the best services are the ones that do not market or much at all. These are the men/women that pump out information on the stream and may throw a link in there here or there, but on an irregular basis to where you would most likely miss it.
When it comes to trading services, be skeptical! Be leery of stock recommendations you receive in the mail or those emails with volatile font size and highlights no matter who it is from.