Day Trading System – Always go With a Company That Publishes Their Results

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Here’s what to do and how to check their status and past results, always go with an educator, trading mentor or live trading service with moderators that publish their results on a daily basis!   This is crucial in order to make sure you can check their profitability and consistency and longest losing streak in real market conditions at the same time as you follow these markets. Watch this data carefully for over a month!

Looking for a trading mentor, an educator?

Remember there are 3 important variables but this can be tricky so consider the following:

1)      Run an imaginary trading scenario using the daily results of one month.

2)      Use a fixed imaginary account size and trade the same contract size throughout.

3)      Everyday add the supposed profit or loss you made following these results.

4)      Take into account the margin required by a broker for opening a position.

After evaluating the results you will have a clear view of the 3 factors:

1)      Overall monthly profitability

2)      Longest losing streak

3)      Consistency of winning trades

So it’s important to have this data available

And the only way to perform this test is to go with a company that publishes their results on a daily basis, don’t bother with companies and trading services of any kind that delay publishing their results (you will need to give them a few days for admin… but that is it).  You also need to compare their trading with your own trading skills on the daily market and see if they can really help you by performing substantially better than you would if you traded on your own, after all there’s no point paying for a service that can’t deliver better results than you can.

What publishing their results on a daily basis tells you about their trading service?

It simply tells you that they are confident in their trading methodology and techniques and not willing to hide anything, these are normally the kind of services that do deliver actual positive results and can help you grow your trading account while learning, therefore they worth paying for.

Dishonest trading education services usually don’t answer difficult questions, they will avoid for example a question asking about their longest losing streak, and use misleading sales tactics that cannot really fool experienced traders, and what’s more they may even intentionally delay publishing their daily trading results hoping you will just take a look at them many days after you have forgotten that very day’s market trading action.

For example they wouldn’t want you to know that on a day where the SP500 moved 20 points straight up they only managed to make 2 points of profit on the underlying E-mini contract, when you could have made at least 8 trading on your own. So it’s important to

Watch out for these tactics and these will help you tell a decent, honest trading advisory service from an amateur, dishonest one that has questionable future. You want to stick around with the best, the ones that can support you for as long as 2 or more years.

Paul Murphy is a passionate and successful trader.  Always in search of the best trading systems, and researching ways to help you be the best trader you can possibly be.  Discover how to improve your trading performance with articles and interviews at his blog: www dot trading powerhouse dot com

This entry was posted on January 7, 2010 at January 7, 2010 and is filed under Day Trading. You can follow any responses to this entry through the RSS 2.0 feed.