Gone are the days of Stock Advisory Services – New Era has begun
07-17-2009
Category: Introspection Series
A traditional stock advisory service uses proprietary trading systems that will trigger “buy” or “sell” signals for a specific stock. All of these systems are based on historic performance, and rely on the fact that history will repeat itself. Since they do work on the basis of statistical and historical data, they are not necessarily wrong. Given enough time and numerous trades, eventually they may end up in the plus column. So, why is it that these advisory services’ clients are not making money, even though the service reported a 300% return on a particular stock tip? It’s an inherent problem in stock market advice.
Let’s explore the reasons why a historically correct system did not yield a profit for their clients. The advisory service sends out 2 – 3 stock picks each day. A 20% average winning ratio of all picks combined is considered a good statistic. Perhaps an above average advisory service can manage a 300% return on 5% of their recommendations.
Now here comes the reality check: Each investor has their own individual risk tolerance, which is different from that of every other person. Each investor has a limited amount of capital that they can play with, and pretty much everyone is unlucky when it comes to picking a winning lottery ticket. Since you are not a millionaire yet, obviously you will not be able to trade 2 – 3 stocks every day. So what happens? You trade once in a while, using your best guess – much like playing the lottery, and chances are that your pick will be among the 80% loosing trades, which represents the average of the entire deluge of stock picks sent to you.
Of course, higher returns are always associated with higher risk. This will be the case for stock picks that are touted as having a 300% upside potential. And here you are, already battered by today’s volatile market, and highly unlikely to risk what money you have left on such a pick. Your good old traditional stock advisory service will eventually come out with a glowing report on returns. It’s just your bad luck that you were not able to participate!
It’s the limitations of these traditional advisory services, and their inability to provide their clients with tangible returns, that gave birth to the Portfolio Subscription Service at www.tradegreeks.com. We started out spending a lot of time just evaluating what investors really need before developing our trading system. Here is what we found:
- There is a limit to each client’s risk tolerance
- There is a limit to the capital each client is able to invest
- Clients don’t have the time or expertise to do their own research
- Clients are looking for help that will tell them exactly what to do and when
- Clients want to be able to sleep at night without having to worry about their investments.
Armed with this knowledge, designing our system became a much easier task. It became obvious that our service needed to be based on a fixed portfolio size, representing the initial capital the client is willing to invest. Then, taking each client’s risk tolerance into account, we craft each recommendation in simple language that the client can execute or communicate to their broker. By simple language we mean: no room for interpretation.
To ensure your good night’s rest, we offer a unique return-on-investment commitment which eliminates all risk to our subscribers. No more worries about return percentages or hitting/missing the jackpot – everything is built in to our service. We know of no other company that can make such a guarantee with confidence.
At TradeGreeks we have taken subscription services to a whole new level. We know how to trade options inside out –knowledge that we leverage to make profitable options investing truly easy for our subscribers. With an iron-clad money-back guarantee, you have nothing to lose. Options investing is the single best strategy to use in today’s volatile market, and slowly investors are beginning to catch on. We invite you to join the revolution of Portfolio Subscription Service by taking the first step - Option Trading Re-invented!!. Register free by visiting our website: www.tradegreeks.com.
This was an article from our ‘Introspection Series’.
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