Trap for Investors (6) - The Best Trading System in the World for Sales

For anyone who has spent some time in the stock market, he/she must has come across some advertisements on selling of outstanding profitable trading system, courses, stock pick, etc. that promise to have your return of investment multiplied a couple of times in short period of time.

Now before we discuss on such advertisements, let me bring out a true story that happened in Niagara Falls:-

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Back on June 30, 1859, a man by the name of Charles Blondin accomplished an amazing feat. He crossed Niagara Falls on a tightrope. About 5,000 people had turned out to see his performance as he had ran an ad in the New York Times earlier on.

The rope stretched 1,100 feet (nearly the length of 4 football fields) across the falls at a height of 160 feet (about 16 stories high).

Before Charles began his first attempt to cross the falls, he asked the crowd a question. “How many of you believe I can cross the falls on that tightrope?” The crowd just applauded and cheered to encourage him to start the performance. Charles not only safely made across and back on the tightrope, but also increased the difficult of the performance each time by pushing a wheelbarrow, on stilts and blindfolded.

As the crowd was so amazed with his skill, he then asked “How many of you believe that I can cross the Falls with somebody on my back?” The crowd applauded and cheered this man that they now believe in his ability to do so. Then Charles asked for a volunteer, “Who will volunteer?” The crowd was silent. He then pointed out one man standing nearby, “How about you?” The man replied, ”Hardly, you don’t think I am going to risk my life like that, do you?” and he turn away.

Next Charles pointed out another man, “And what about you?” The man replied, “I believe. In fact, I have no doubt at all.” The man then proceeded to climb on the back of Charles Blondin and they headed across the falls. The crowd waited breathlessly while they crossed and roared their approval once they completed the crossing. What they didn't know was that the man who crossed on Blondin's back was Harry Colcord, his manager.

You see Harry Colcord knew how good Charles Blondin was and fully trusted him. His faith was secure, as the object of his faith, Charles Blondin, was trustworthy and had proven himself so over the years.

Reference: An Illustration of Faith

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Yes. This story is about the "Faith" that we have on "some one" or "some thing". And, let come back to think about "The Best Trading System in the World for Sales"...

If those people, who are selling their Best Trading System, have Faith in their own system that can Multiply on the users' investment in short period of time, why do they just want to sell it for a couple of hundreds or thousands dollar????

One should be aware that for any good system, when it become public, it loses its effectiveness.(<- click here for some back testing results for many popular indicators that are used by the public.) The profits from the stock market are not unlimited. The profits have to tie to the transacted volume. Take for example, some penny stocks can get double, triple or even more in a short time. But if one take into the consideration of actual transacted volume.... He will see that it is only able to feed some speculators, not the major public. That is when a big pool of people want to take the profits, they have to sell the stocks, which would lead to excess supply... and the profits may suddenly vanish if not become negative. :-)

So, are you going to be the volunteer to use the system that the designers themselves do not have the full faith on it?

Well, one will never find peace of mind by letting the financial market to erode their hard-earned money, nor allowing others to determine their job stability in a compnay. And yet one can not simply buy a good trading system to depend on... So, is there any solution to escape the rat race? What about develop your own? If it is to big of a task for one person, why not workout a Master Mind Team to handle a bigger task?

"Whatever the mind of man can conceive and believe,

the mind of man can achieve."

- Napoleon Hill