Trading Statements, Do They Provide Value?

Let the debate begin!

Okay, let me kick this off.

I submit that statements have no value whatsoever unless one wants to confirm trading claims expressly made by vendor, service, educator, guru, or whatever. For example, Falcon Day Traders claims a 90% success rate. They should be able to provide undisputed backup to support that.

Why do customers want to see them? Why do vendors not want to supply them?

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Originally posted by moneytec

Why do customers want to see them? Why do vendors not want to supply them?

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I don't have the answers since I'm neither a customer nor vendor. Why not take a stab at anwsering your questions? Thank you very much.

What would your guess be?

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Originally posted by moneytec

What would your guess be?

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Sorry, I'm not very good at guessing. (I failed miserably at those games shows.)

Since you brought up the questions I thought you might have some ideas. If I was mistaken, please accept my apology.

I think if one really sits back and thinks about why it is important to analyze your own statements then they will see why it would be important to analyze a vendors statements..

A few random thoughts to begin in relation to a vendor and your own statements....by looking at your statments you can:
1) Confirm that you are sticking to your trade plan
2) You can measure your own consistent or inconsistent trading behavior..is a vendor consistent over time? Do they change styles regarding exits, entries or stops every few months? Do you do this?
3) See what your historical drawdowns may be so you can further evaluate your results..in other words can you really keep trading the way you are.....Could you trade the way a vendor actually trades? This would include the amount of contracts traded, having realistic targets, and being able to actually take the trades especially if a vendor is scalping or using a method that requires quick reflexes. Does the style fit your personality. Are you capitalized enough to trade as you will be taught.
4) Have there been any large trades that you have won or lost that would skew your results - This would apply to a vendor also.
5) How long does it take after a drawdown or period of bad trading to reach new equity highs....?
6)What percent return are you or a vendor actually achieving? In other words, is it worth even trading when you might be able to get a higher return else where.

Ok so here are a few Ideas..I will go in a different direction in my next post.
Bruce

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Originally posted by ahk

Okay, let me kick this off.

I submit that statements have no value whatsoever unless one wants to confirm trading claims expressly made by vendor, service, educator, guru, or whatever. For example, Falcon Day Traders claims a 90% success rate. They should be able to provide undisputed backup to support that.

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Ok this is a bit different: some questions..

If you where going to have brain surgery would you rather have it from someone who actually performed many operations over time and showed a very high success rate or would you rather have it performed by someone who read about brain surgery, teaches brain surgery but hasn't actually perform surgery? So seeing profitable statements over time corelates to this.....If a vendor can't show me profitable statements over time from themselves or students they have trained then what gives them the right to teach me?

Profitable statements from them and/or their students would resolve any doubt of their trading or teaching capabilities....the numbers don't lie....Ok some scams the numbers will lie but lets assume that if a vendor is willing to provide statements then thay may be legit...

Bruce

This is HUGE... if someone is claiming that they can teach you to trade or teach you profitable methods then this comment below fits perfectly...They are making a claim.......Why wouldn't anyone want to confirm this? If I hire someone to do work on my house I verify their claims that they can do the work by calling past customers, examining their work, calling the BBB etc....why should a vendor be outside this realm..? I think you summed it up nicely.......any claim made should be able to be verified....and statements can provide that, they provide a lot of value. There is no reason that anyone should have to take a builders ( in my example) or vendors word.

quote:

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Originally posted by ahk

Okay, let me kick this off.

I submit that statements have no value whatsoever unless one wants to confirm trading claims expressly made by vendor, service, educator, guru, or whatever. They should be able to provide undisputed backup to support that.

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Ok, so someone puts up a website and advertises that they can teach people to trade...where does the customer get "undisputed backup" to support a vendors claims..?

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Originally posted by ahk

Okay, let me kick this off.

I submit that statements have no value whatsoever unless one wants to confirm trading claims expressly made by vendor. They should be able to provide undisputed backup to support that.

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Originally posted by BruceM

Ok, so someone puts up a website and advertises that they can teach people to trade...where does the customer get "undisputed backup" to support a vendors claims..?

quote:

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Originally posted by ahk

Okay, let me kick this off.

I submit that statements have no value whatsoever unless one wants to confirm trading claims expressly made by vendor. They should be able to provide undisputed backup to support that.

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Congratulations on your cut-n-paste mastery. Undisputed backup refrerred to performance claims. Kindly quote the entire remark in fairness to the reader. Thank you.

Here is the new topic that DayWalker created: Why vendors don't supply trading statements?