On paid and free advice...

arabianights · May 24, 2009

This should be obvious, but so many folk are morons that I thought I should put it down

If someone is charging for advice:

One will make far more trading than giving out advice for a flat fee, at least if one's trading strategy is scalable. If one's trading strategy is not scalable to the extent that trading it well surpasses charging a fee for it, then it is not worth paying for.

Thus, if someone is charging you for advice they are either an idiotic businessman, or a poor trader. Most likely they are both.

The exception is when those giving you the advice will benefit from your success, for example by commission as at most prop houses, or increased bonuses at most IBs. But that is not relevant to 99% of folk reading this. And anyhow, in such cases you shouldn't be shouldering any of the burden yourself.

If someone is offering free advice:

I have a lot to write about this, which I shall fill in at another time. For the moment, assume they're wrong without a very good reason not to

Anne Onymous · May 25, 2009

arabianights said:
This should be obvious, but so many folk are morons that I thought I should put it down

If someone is charging for advice:

One will make far more trading than giving out advice for a flat fee, at least if one's trading strategy is scalable. If one's trading strategy is not scalable to the extent that trading it well surpasses charging a fee for it, then it is not worth paying for.

Thus, if someone is charging you for advice they are either an idiotic businessman, or a poor trader. Most likely they are both.

The exception is when those giving you the advice will benefit from your success, for example by commission as at most prop houses, or increased bonuses at most IBs. But that is not relevant to 99% of folk reading this. And anyhow, in such cases you shouldn't be shouldering any of the burden yourself.

If someone is offering free advice:

I have a lot to write about this, which I shall fill in at another time. For the moment, assume they're wrong without a very good reason not to

Hey,
I used to work for a firm providing "paid advice" so I thought Id pitch in on the "if the advice were any good they wouldnt be sharing it" widespread rationale.
Basically, we would sell trading recs to shops around the world for a flat fee, yet we also did trade all of our recs, and I traded almost all of them myself on a personal account as well (all of mine at least, and most of my colleagues when I agreed

)
So the two ideas are not mutually exclusive. Of course you can ask why bother selling the signals if they are profitable overall, which they are. Thats down to the boss I guess, who felt advisory was less time-consuming after many years on trading desks, and perhaps lack of proper funds to play with. Plus the current make-up is satisfactory enough since the company makes money trading and when theres a bad spell, then the fees act as an hedge.

new_trader · May 25, 2009

arabianights said:
This should be obvious, but so many folk are morons that I thought I should put it down

If someone is charging for advice:

One will make far more trading than giving out advice for a flat fee, at least if one's trading strategy is scalable. If one's trading strategy is not scalable to the extent that trading it well surpasses charging a fee for it, then it is not worth paying for.

Thus, if someone is charging you for advice they are either an idiotic businessman, or a poor trader. Most likely they are both.

The exception is when those giving you the advice will benefit from your success, for example by commission as at most prop houses, or increased bonuses at most IBs. But that is not relevant to 99% of folk reading this. And anyhow, in such cases you shouldn't be shouldering any of the burden yourself.

If someone is offering free advice:

I have a lot to write about this, which I shall fill in at another time. For the moment, assume they're wrong without a very good reason not to

Trader paradox...I like it. Everything I say is a lie!

TheBramble · May 25, 2009

arabianights said:
If someone is offering free advice:

For the moment, assume they're wrong without a very good reason not to

Including this?

arabianights · May 25, 2009

Yes, all cretans are liars.

TheBramble · May 25, 2009

LOL. Good on ya Stavros....

On paid and free advice...

arabianights

Legendary member

Anne Onymous

Junior member

new_trader

Legendary member

TheBramble

Legendary member

arabianights

Legendary member

TheBramble

Legendary member

Similar threads