*The Definition of Insanity* -- By: Bill Kraft
Copyright 2008, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
I just have to laugh. Now I remember why I stopped doing seminars
and limited my teaching to speaking engagements and private coaching.
Last weekend, I included a section in the Newsletter article asking if
folks might be interested in a seminar in Scottsdale late this coming
winter. I set out the price and asked for anyone who might be seriously
interested to email us or put an evidence of interest on the blog. A
number of subscribers have responded and shown interest as I had
requested. However, among the responses were those who felt it
incumbent upon themselves to criticize things like the days (a weekend)
on which I proposed holding the seminar and their opinion that the cost
was too high. Simply put, if someone doesn't approve of the days on
which I would hold the seminar or the cost I charge, don't come.
One person wrote: "I feel the price of the seminar is way out of
line given the soft economy...3k for 2 days is way too much!" Fine, I
can understand that someone may not want to pay that much. What he
failed to consider, however, is what other seminars cost and the cost of
not getting an education. Recently, on the blog, we had subscribers
write about paying $15,000, $18,000, or $20,000. The fellow who wrote
also fails to consider what it will cost him to trade without education.
Honestly, if he doesn't want to pay $3,000 (actually it would be half of
$2,500 if he came from more than 50 miles away and brought a spouse,
friend, or significant other), then he shouldn't. Whether he comes or
not is up to him. He will pay one way or the other. I have talked to
many folks who have lost thousands to hundreds of thousands before
deciding it might be smart to get some trading education. A single
trade can pay for a $1,250 seminar. But it is up to the individual.
That same fellow went on to say: "Besides... you have made alot of
money trading and don't need to charge those kind of prices..."
Absolutely correct, I have made a lot of money trading. Why, though,
should I give this fellow my time, energy and knowledge? I paid my dues
(about $40,000 in education) and have expended a lot of time, effort,
and energy to get where I am. I suggest he will have to do the same.
Quite honestly, I do not believe I owe him anything. The same fellow
went on to write: "But then again .. maybe you really havent [sic] done
as well in trading as you have led your readers to believe... Looks like
your books and seminars are the way you make most of your money."
Pardon my language, but that is a load of crap. This guy doesn't know
me from Adam and his accusation is false. I haven't done a seminar in
years, largely because of people like him. Trading books, even
relatively successful ones like "Trade Your Way to Wealth" don't make a
whole lot of money. I trade for my living and I do the Newsletter for
free.
I have to say I simply don't care whether I ever do another seminar
or not. I proposed the idea of a seminar only because subscribers
asked. Clearly, it isn't worth the hassle to have to deal with people
like the fellow I quoted. If someone doesn't like the cost or the days
on which the seminar will be held, don't come. I don't care, but don't
call me a liar.
All that aside, I do urge traders to get educated. It definitely
doesn't have to be with me. There are many good teachers out there.
Don't expect them to be cheap. Their time is valuable and you can
probably learn a great deal about things like cutting losses, letting
profits run, money management, risk aversion, creating your plan, and
exit strategies. I can assure almost everyone that one way or the other
you'll pay for your trading education. I'm convinced that the most
expensive way is on the job training.
It has often been said that the definition of insanity is repeating
the same thing over and over again and expecting a different result.
Unfortunately, that is what many would-be traders tend to do. The
likelihood of success for them falls into the slim to none category.
Let me suggest that you not choose to include yourself in that group.
Good Trading!
Bill Kraft
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Here's a look at a trade Bill is currently working on:
Broadcom Corp. (BRCM)
The semis have shown a bit of strength recently. BRCM has
held its own over the last week in the face of the market turmoil and
recently formed a double bottom support in the $14 range. I'm looking
at the Jan 2011 LEAPS calls. Since they are so far out, only the $15
strike has sufficient open interest for me to touch. The Jan '10 LEAPS
calls don't offer much better OI than the '11s in the lower strikes so
if I jump in it would probably be with the 2011's for the modest
difference in price at the same strike which would give me a year more
of time.
Good Trading!
Bill Kraft
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Trend Trader -- by Bill Kraft
Trend trading as we try to practice it is a form of momentum trading. We prefer to try to capture profit out of the middle of the trend rather than try to catch reversal at bottoms and tops.
Here's a look at a trade Bill is currently working on:
Randgold Resources Ltd. (GOLD)
Though the gold stocks have been in disfavor recently, many
turned up on Friday. GOLD was among those that moved up and formed a
bullish engulfing candlestick formation on increasing volume.
Generally, one looks for confirmation of bullish engulfing candlesticks
and that is what I will do in this case.
Good Trading!
Bill Kraft
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$10 Trader -- by Bill Kraft
We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.
Here's a look at a trade Bill is currently working on:
Cninsure Inc. (CISG)
CISG moved opposite the market on Friday on strong volume.
It could be a buy for me on a pull-back. Support is in the $7 range.
Good Trading!
Bill Kraft
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