Stock Trader

The QQQQ trading scheme slammed the investment community by storm 10 years ago.

Every dude who could put up a internet site started offering his QQQQ trading alerts for about $25 per month.

If you ever in your life signed up for such a product then you definitely know, it is trash.

These types of QQQQ trading websites that are presumably going to help you make a large amount of money with their built up trading systems are mainly around to help the operator of the website make money off you.

Way back in the late 90’s, I just wanted to try out such a service to see what it was about. I signed up for a QQQQ trading service from a company called Highlight Investments Group.

You never truly are able to grab the same increases that they put up on the internet site mainly because of slippage. Highlight Investments Group just totally disregards the cost of doing a stock trade. For example, their internet site reveals, “Long 7/22/2010 Enter at $45.93 7/23/2010 Sell at $45.98 For a 0.11% Gain”. Hence the internet site records this trade as a gain! Having the cost of the stock trade realized in, this trade was a loss for nearly all unless of course you are buying and selling some $100,000 dollars in QQQQ and even then, you’d most likely get your order filled in multiple chunks on the way up.

A more fair system by Highlight Investments Group would be to cut 2% off every signal for slippage as if an individual put $1,000 at risk applying their trading signals.

Highlight Investments Group has on their internet site: “QQQQ Signals - Past 3 Months - Our Compound Returns = 17% - Buy & Hold Returns = -9%”

This is a great model of how you can use numbers to lie. The impression you get is that if you bought and held, you would be down money, but if you used their stock trade signals, you would 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 almost 10% in QQQQ whilst using their signals would have you up only 3.5%, and that’s 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 actually able to yield these kind of returns, why would they be trying to sell the technique to you for $30 a month? Why would they handle furious customers crying out for refunds, web hosting charges, business filings, taxation, IRS business returns, and the dozen other things a company has to handle. Would not they just silently take advantage of their own system to turn into filthy rich investors without all the troubles involved with running their own internet business?

You are much better off folks understanding how to stock trade and doing technical analysis on your own compared to using some sort of secret black-box mystery buy and sell signals you have no idea how they were derived and are not allowed to look inside and examine.

In this video, I carry out technical analysis on QQQQ and offer you my opinion on where this market is going.

Find out why some traders almost always make gobs of money in the stock market. Visit qqqq trading