Recognizing Bad Trading Advice
By Dave Mabe
Take one look around the trading industry, and it's easy to see why it's such a dumpster fire.
It's built on affiliate marketing, where you get paid when you recommend a service and someone signs up through an affiliate link.
I refuse to participate in these programs for two reasons:
I'm a contrarian, so my instinct is to do the opposite of the trend
More importantly, you can't tell whether a recommendation is genuine if the recommender is getting paid to recommend it!
(I just checked my inbox, and I got 5 offers to join affiliate programs in the last 2 days! Yuck.)
Now apply the same logic to trading advice.
You see traders all over X and YouTube offering strategy advice.
"I took trade XYZ, here's the chart, see how profitable it was? Join my trading room."
Wouldn't it be nice to have a way to filter through all the BS and know which strategy ideas work and which are just marketing/affiliate crap?
Well, I've got news for you.
There is a way to create your own BS detector.
A way to easily see which ideas are BS and which have potential.
A way to prioritize which ideas are worth your time and effort.
So you don't waste hours and money on something that's worthless.
A way for you to decide for yourself if something is worth trading.
Your own process.
It's called backtesting, and it's your trading superpower.
If you're not backtesting, how do you know what's BS and what's not?
You don't.
-Dave
P.S. Wish you could backtest your ideas - without spending months learning to code? Run your first backtest in an afternoon using my Amibroker AFL Course. Get Instant Access