I recently favorited and re-tweeted a tweet from Kim Klaiman;
Autotrading investment newsletters: are you aware of the risks? Did you know that in most cases it is not legal? http://bit.ly/1BDVXLL
Let’s go back and re-visit some of my rants in my previous posts;
“Gotcha” Trading from May 20th, 2012
Trading Plan (What? Wait, there’s a plan?) from June 2nd, 2012
Option Spread Trading ‘Services’ reviews from September 14th, 2012
Auto Trading Options Spreads; a cash shredding service $SPY $QQQ $IWM from September 25th, 2012
more on spread trading and auto-trading $STUDY from December 12th, 2012
Those are just some of my rants on the subject (you can find more if you just search my blog), which is why I was drawn in by the subject of my re-tweet. Clicking the provided link, I found it was selling an options auto-trading service, and I was about to close out the browser tab when I noticed this;
Is the newsletter a licensed investment adviser? SEC considers newsletters that engage in auto-trading to be investment advisers. If the newsletter is not an investment adviser, by engaging in auto-trading they are breaking the law and are exposed to lawsuits like this one.
This is the lawsuit mentioned;
So, I went and took a look at some of the websites that I had previously auto-traded, and look what I found;
From http://www.wickedprofits.com/disclaimer.html (emphasis mine);
From http://momentumtrades.investorplace.com/meetrickrouse/ (emphasis mine, and doesn’t specifically state whether or not he’s licensed, but it does state he failed the series 7 exam and opted not to re-take the exam);
From http://www.bookingalpha.com/terms-of-service (emphasis mine);
Here’s some additional info from a good site (“Stock Gumshoe”);
Author/Editor: Trevor Vernon (read the “Subscriber Reviews)
And then, there’s ‘this guy’ and his partner, Allan Tan. They contacted me and offered a discounted rate for their service in exchange for a good review on investimonials.com, which I have since come to regard as yet another moneymaker for Tim Sykes, douchebag extraordinaire and self-professed ‘stock shorting god’. But that’s a subject for yet another rant about charlatans, carpetbaggers, and snake oil salesmen.
John Mylant opens a Google search.
Disclaimer / Privacy Policies
This guy is such a scumbag and LIAR! His website has no mention of a 50% loss, but he does reference his old record and shows his new record, but selectively omits the one trade where his bad decision cost me more than 50% of my account.
Here’s his ‘trading record;
You can click on ‘older track record’ and see that it stops on 5/29/13, and his ‘new’ track record records no trades for a few dates between June 12th – July 10th, 2013.
Here’s his version;
This was a screenshot of his website that I took on July 6th, 2013;
Here’s a screenshot of my trade logs showing he did make bad trades but fails to record them, leaving his ‘track record’ looking pristine. Lying scumbag. Anyway, here’s what his bad decision did to me in just one of my accounts;
So, if anybody asks me for a newsletter recommendation, they’ll get a blank stare at best. At worst, they will be hit with a tirade so strong it will blow them over, maybe even replete with profanity so strong and voluminous as to make even the most profane person in the world cringe at the barrage.
I should also mention all of these scumbags except one have a ‘no refunds’ policy. I did get a refund of $24 after one such scumbag lost me tens of thousands of dollars with his bad trades. Hah!
Most of these charlatans simply leave town with your cash. Some remain and keep lying about their great ‘service(s)’. Most should be castrated and lobotomized, at the very least. No beheadings, though, as this is not some crazed extremist’s blog. It’s my blog, and I seek the truth, and I seek to disseminate truth. No falsehoods, no sleight of hand, no smoke and mirrors. Just the plain ugly truth.
I also must mention that I have been ripped off by covestor and wealthfront, when they used unlicensed ‘advisors’ for investors to ‘mirror’ their trades. I’ve also been ripped off by Fidelity, but they had an excuse; “At least you lost less than the market. Here’s our bill.”
Finally, there’s this;
Food for thought.