Three Essential Questions to Ask for Your Investment Newsletter
If ever that you are trying to analyze if a promotional ad on investing newsletters or a market timing investment trading system will be worthy of investigation, the questions below must be asked:
One of the questions is to whether the strategy described in the investing newsletters has any track record. If you don't have this, you actually may allow your emotions are in play. A lot of people actually believe that in case someone will say something, it could possibly be true. A truth however is where it could probably be the opposite. You could actually find a lot of ads and promotions which are being put in print for a self-interest at first and that the others are in second. You should try to view anything on the web with skeptical eyes. The minimum to which an investment strategy must be able to give you would be their previous track record. The longer their track record is, the better. For anything that only had worked for months is actually not that long enough in the trading world to really be considered one that's successful. You could actually find some promotes which actually don't release the track record because they usually say that their past performance is not as an indication with the future results.
You in fact need to know if the track record that they promote would be in real time or that this is simulated in a computer based on the past data. So the questions would be on what does it really mean? Real time in fact means that the trading signals which were used in producing track record results were in fact generated through a certain moment in time. In reality, a lot of track records on investments online are in fact not true in real time even if they tend to say that they are. Even when they did not use a computer and that it was only done by hand, if the data also taken from the last five years yet the website is just a year old, it cannot be so. A reason why this is seen to be crucial is that trading is not really trading if the human emotions are going to be removed.
How would you be able to tell whether the track record would be in real time when they lie about it in the first place. This in fact is not always easy but there are some signs.
But what if the track record would be a combination of partly historically back on the tested signals and party real time signals? But how would you be able to analyze these things? An important thing that you actually need to do is to look at the win-loss ratio whether this actually has changed through time.