Stupid QQQQ Trading For Mentally Challenged
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The QQQQ trading scheme smacked the investment universe some 12 years back.
Just about every Ruben that could put up a website started supplying his QQQQ trading alerts for approximately $30 a month.
In case you ever previously signed up for this kind of a service then you by now recognize, it's garbage.
These QQQQ trading websites that are allegedly going to enable you to make a whole lot of money with their built up trading systems are solely around to help the owner of the website make money, not you.
Way back in the later part of the 90's, I just needed to test such a product to see what it was exactly about. I registered for a QQQQ trading service from a company called Highlight Investments Group.
You never really are able to end up getting the same gains that they publish on the website mainly because of slippage. Highlight Investments Group just entirely ignores the cost of making a stock trade. As an example, their website shows, "Long 7/22/2010 Enter at $45.93 7/23/2010 Sell at $45.98 For a 0.11% Gain". Consequently the internet site records this stock trade as a gain! With the expense of the stock trade calculated in, this trade was a loss for almost all unless of course you are buying and selling some $100,000 dollars in QQQQ and even then, you'd most likely have your order filled in multiple portions on the way up.
A more honest program by Highlight Investments Group would be to shave 2% off every signal for slippage as though a person put $1,000 at risk applying their trading signals.
Highlight Investments Group posts on their website: "QQQQ Signals - Past 3 Months - Our Compound Returns = 17% - Buy & Hold Returns = -9%"
This is a good illustration of how you can use numbers to lie. The belief you get is that if you bought and held, you would be down money, but if you used their stock trade signals, you'd be up 17% over the previous 3 months. Why did they use 3 months? What if you used 1 month instead? Over 1 month, a buy and hold strategy would have you up just about 10% in QQQQ whilst using their signals would have you up only 3.5%, and that is not keeping track of slippage which would add another 5% (3 trades over last month at about 1.5% cost per trade) loss on the downside for a total loss of -1.5%!
Don't you know that if Highlight Investments Group was genuinely able to crank out these kind of returns, why would they be trying to sell the method to you for $30 a month? Why would they deal with indignant clients demanding refunds, internet hosting fees, business filings, taxes, IRS business returns, and the dozen other things a online business has to handle. Wouldn't they just silently utilize their own method to become wealthy investors without having all the stress related with operating their own company?
You are much better off folks mastering how to stock trade and performing technical analysis on your own in contrast to using some sort of inexplicable black-box top secret buy and sell signals you have no clue how they were derived and are not permitted to look inside and investigate.
In this video clip, I carry out technical analysis on QQQQ and give you my opinion on where this market is going.
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