How can I ethically make this product?

Hi,

The thread about trading got me thinking about my continuing interest in chart reading and trading systems.

Over the years I've invented better chart-reading trading methods than I've seen in any books. But, for reasons that have nothing to do with the validity of the systems I invented, I've never made money as a trader--in fact, I was out of the game before I learned everything I now know.

Is there a way I could ethically and honestly turn my trading methods into a product? Or am I heading for the slippery slope that leads to becoming yet another scamster--which is something I refuse to do and will never do.

What do you think?

P.S. Gordon, have you ever thought of making products to help traders get shut of the emotional and psychological problems that are preventing their success? 90% of all traders can make simulated millions paper-trading (we all know exactly how to trade, in other words), but only 10% of traders make more money than they lose in the markets (it's the stuff other than the "how-tos" that we _really_ need to learn). You could probably adapt techniques you've already developed for golfers and other people.

Best,

-Boyd

Boyd wrote -

> Is there a way I could ethically and
> honestly turn my trading methods into a
> product? Or am I heading for the slippery
> slope that leads to becoming yet another
> scamster--which is something I refuse to do
> and will never do.

> What do you think?

Right off the top of my head, I can see where you could easily develop this as a book/e-book and potentially a software app. However, two caveats come to mind:

1. You'll have to prove that your system works better than anything else that's out there, (to paraphrase one of *your* phrases). Since you have never done better than break even, (at least in futures?), it's unclear to me how you'll make this proof.

2. You'll want to make it abundantly clear to the buyer that you're not a securities dealer, (unless you are and I'm sure you know you have to have a license to be a securities dealer), and that you're not providing financial advice, etc.

JAT,

Rick Smith, "The Net Guerrilla"

Hi Boyd,

Boyd, from what I read in your messages, I think you could produce a product (ebook or software) based on some of your knowledge of day-trading.... But I'd keep in mind Rick's two caveats....

As I see things now based on your own comments, at the moment your own system is unproven in the "real world." I honestly don't think you should create a product around that until you've proven it works in the real world, and it's consistently been making money for you (or for someone else who's applied it)....

However, I think there are other possibilities you could pursue....

For example, in one of your messages you said you know pretty well the techniques of Joe Ross and Linda B. Raschke. I don't know what their techniques are, but you might be able to build this knowledge into a product of some kind.... Maybe you can explain it in an easy-to-understand way, for example (if current books on this are kind of technical). Or in just some different way....

We all think in different ways. I've discovered this in the physics research world.... For example, you could have two books explaining the same information, but they could explain them in completely different ways....

One book might use an abstract and more technical approach to explaining things. Another book might be full of examples, and teach purely through examples.

I've found that in cases like this, I will probably find one book much easier to understand and follow than the other book, but someone else I know will find that they far prefer the other book. If you can explain things in a different way, I believe that you are giving value as you are helping some people to understand the material better, because our brains are sometimes wired differently....

There could be software possibilities too -- I don't know enough about these techniques to know much more regarding that....

Boyd, I know you're a very honest fellow, and it'd be hard to sell your own system if it hadn't made money for you. However, you could possibly sell your explanations of other systems, if you really do understand it well yourself and can explain it....

And as for handling the emotions, how about a cap with compartments all over for ice-cubes, to use when trading??? Haha, just kidding! :)

Actually, who knows? Could be a good novelty product aimed at day-traders.... :)

Dien Rice

Hi Boyd,

Do the same thing that other people are doing to get testimonials for their e-books or to test software - hand it out for free to qualified people and request a testimonial/feedback in return. You can be upfront in explaining how you developed the course and that you need people to test the strategies - that's why you are giving it away for free. Ensure that you put in the necessary legal jargon to protect yourself with the course and you could have them sign a waiver releasing you from any liability.

Without having your techniques actually put into use and shown to make money for people - I agree it will be extremely difficult to have a successful product.

Jeff

The problem with my golf system is...

It works!

So how is that a problem?

At the highest levels of the game, mastery of the emotions at CRITICAL times is what separates the guys in the green jackets from the Greg Normans (no offense to Greg, he's one of my favs)...

Same goes at the poker table...and in trading...

I even see it in antiques...

It has to do with the THRILL, the rush, the high that comes along with it, and not so much the win/lose thing.

Almost any golfer can instantly improve (I've proven it for over 10 years with TARP)...BUT,

it requires that you separate your action from your emotion...

Watch Tiger Woods today...a more "controlled" emotional golfer than he was 3 years ago...but still charged up...still letting it out...

but much more in MENTAL control...when things go right or wrong...

Ben Hogan, Jack Nicklaus, David DuVall...and many others play (ed) in CONTROL of their emotion, you'd be hard pressed to figure out if they are winning or losing just by looking at them.

There is a certain detachment, knowing that in golf there is BAD LUCK, it even has name, called "rub of the green"...

Same goes with trading...just as you hit SPEND MY MONEY...there is a coup in some foreign country that makes it skitterish...a little bad luck on margin goes a long way toward macaroni & cheese every night...

The secret to a better game of golf is to ELIMINATE your mental mistakes by following a system of thought...one that takes the emotions out of it.

The problem is that most golfers NEED to have that high when they hit that ONE good shot a round...to contrast against the dozen or more stupid shots they hit.

So, for a few golfers, their JOY is not in playing a better game (beating the course {market}) but in getting the adrenaline rush from that great recovery shot they hit on the 14th...never mind they went 8 over their handicap.

A really good golfer plays with intensity and to the highest level of his game THAT DAY...and it varies from day to day. He/she has to manage what game they have working...and if they can do that on an OFF day, then they stay near the top.

I'd bet the same goes for traders, those that can lose and say OH WELL, and come back for more tomorrow, are probably still in the game while others want/need the rush...

The secret is...

NOT caring if you win/lose...

the day...

but if you can maintain your handicap over the long haul.

But emotional involvement makes it difficult for some personality types.

I suspect the TARP system would work well for investors and business people too. It is all about MENTAL MANAGEMENT...

good luck, and in trading, this little golf tip might be apropos...

"slow down...and follow through"

Gordon Alexander

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