George Angell's Day Trading Course
Q: Has anyone ever purchased a day trading course from George Angell which promises Profitability 9 out of 10 trades. It seems to be actually a video named either "Day-Trading Secrets" or "The Essential Secrets of Day Trading". I don't think it has anything to do with the LSS system or the Spyglass System which he also sells. Can anyone give any feedback on the course (video)? Do the methods work anything like remotely close to what it claims to be ?
A:
I do not know about his system in particular, but I have NEVER seen one that
works consistantly over the years. If I had a way to make winning trades 9
out of 10 times, I certainly wouldn't be selling that knowledge - I'd be
trading.
Your view on this is reasonable. Many view it the same way, but try to put
yourself in George's shoes
Not saying he actually wins 9 out of 10 trades, but let's assume he really
does for the sake of argument.
Say you trade everyday and make real good money. Say you feel that the
number of people who may purchase your system wouldn't be enough to alter
your own personal results.
Now, which would you rather have. You make $1000 a day in your own trading
being right 9 out of 10 trades, or $5000 a day trading and letting others
buy your system?
I don't know about you, but it just makes better sense to increase your
capital base if within your power to do so. I don't care how good a system
is or a trader you are, you are going to have losses as well. In this case,
1 out of every 10. But your system offer is a much lower risk and continues
to flow even when you wish to take a break from trading and go on vacation.
Winning 9 out of 10 times is meaningless unless you also know the MAGNITUDE of
the winners vs. the losers. You could win at roulette 9 out of 10 times,
(actually 34 out of 38, or 89.5% ) by betting $1 on every number from 1 to 34
and not betting on 35 or 36. The problem is that each time you win, you only
net $2 (the $36 payout minus the $34 in bets you put down), and each time you
lose on 35, 36, 0,or 00, you lose $34. 34 winners x $2 = $68 in winnings, and
4 losers x $34 = $136 in losses, for a net loss of $68 over 36 bets. You would
have made 38 bets of $34 each, for a total amount bet of $1292. Your loss of
$68 represents a loss of 5.3% per dollar bet. Whether playing roulette or
trading stocks, frequency of winners alone is meaningless.
My Opinion?
I would reconsider if you are thinking of day trading. As mentioned making
9 out of 10 trade a success is a bold statement that is hard to prove. I
would ask if they could provide proof.