Top 2 Myths About People Who Market Trading Systems
Many investors don’t trust people who market trading systems. They have these notions that if the system was any good, the seller would make his/her money from trading NOT from selling the system and that they make all their money from suckers who buy the system, not from trading.
In this post, I would like to dispel these 2 myths about people who market trading systems. Actually using such services can make one wealthy and if one doesn’t clear their mind of this thinking, they may miss out on opportunities that could change their lives.
I know how they feel. When I first started I was wary at first too. But I soon discovered some systems are legit so you must do due diligence. You can read what I consider the 6 traits of a successful trading system here.
Since I am one of those people who market a trading system, let me explain why I do it.
Top Two Myths About People Who Market Trading Systems
You make all your money from suckers who buy the system, not from trading
This is really an illogical statement. The truth is, if subscribers were not profiting, they would stop their subscription and the system would disappear for lack of customers. Any good system gives a person 30 days or more to check it out. If it’s not what they advertise, you cancel and lose nothing. No one is being taken advantage of. No one is forced to keep subscribing each month.
If the system were any good, the seller would make his/her money from trading NOT from selling the system.
Why can’t I help others AND trade the system? I’ve already spent the hours researching and analyzing each day for my own trading, why can’t I share it with others? There are billions of dollars exchanging hands each day. I can’t grab it all. I want to help others get rich too. What’s wrong with that?
The fact is there are costs associated with giving info away for free. There is the cost of a website, hosting fees, programming of a subscriber’s area, time emailing, etc… I would have none of these costs if I were to keep the information to myself. A reasonable subscription fee helps pay for these costs.
And then there is the matter of giving something away for for free. I would love to do that all day. Unfortunately, 99% of all people do not value anything given for free. When it is not valued, the investor will not act upon it and thus never make anything.
Charging a subscription fee not only helps cover costs, but also established value. If someone pays good money, then they will take action and make big gains.
Trust me, I’ve given valuable advice away for free and every time the people I gave it to just laughed and dismissed it. There was the time on Yahoo when someone challenged all readers to pick 5 stocks that would average a 30% gain each in one month. I said I could give you 5 that would do it in ONE WEEK. They all laughed and dismissed it. However, I did it and out of hundreds of entries, I was the only one to do so.
Then there was the time on Morningstar Forum. Someone wanted to know the best ETF for trading. People were all giving these ETF’s that went up 7% a year. I showed them one that went up 1,900% in 7 years. They all said I was a liar. Even though anyone can go to a financial website and look up the returns under historical performance. But because the info was free, they couldn’t accept the truth.
The Washington Post did an experiment (see video below). Joshua Bell, one of the best concert violinist in the world had just sold out a theater at $100 a seat. The next day, Joshua Bell, on a violin worth 3.5 million dollars, played for 45 minutes at a subway station. Over a thousand people passed by Bell, only seven stopped to listen him play and only one stayed for any length of time.
Giving people winning trades does them no good if those trades re not acted upon. All the research shows, you need to charge a fee in order for people to value your trades and execute them.
I hope that sheds a light on why I and most all others who charge a fee for their trades. There is no reason why we can’t trade the system and also help others.