Product Description 99% of trading systems use the same old indicators. 99% of all trading books say "the trend is your friend". 99% of traders fail to beat the markets. The brutal fact is that a free market is about price discovery. A market works like an organism - "consuming" new fundamental and technical information and rendering it ineffective. You need a system that is flexible and robust - that does not depend on the market moving in trends or creating chart patterns. Praveen Puri, a trading and financial veteran, developed a pure Zen trading system. It uses no news reports, indicators or charts to distract you from Now. This simple and elegant trading system can earn you a great return without undue risk. Please visit http://www.StockTradingRiches.com for testimonials and more information.
Customer Reviews:
A Great Return Without Undue Risk July 30, 2008 I wanted to respond to the above review.
I am pleased that the reviewer mentioned that my system is not a scam and is based on a solid principle. I am also glad that he or she mentioned that my system is intended for non-leveraged stocks, funds, and ETFs.
It seems that the reviewer is a more aggressive trader and looking for systems that can be used on leveraged futures and FX trading vehicles, as well as a system that can trade short and profit in bear markets.
My system does not use leverage, and does not go short. It "profits" from bear markets by taking profits in rising markets and then reinvesting at lower prices.
I disagree with the reviewer about my system having a lower level of return. He mentions that I admit my system does not have a high rate of return.
In my book, I actually said that "when I was younger, I would not have used it [my system], because I wanted to get rich quick - I wanted "action" and triple-digit returns. Now I understand that those kinds of systems are unsustainable."
In my book, I also say that "While I'm no financial genius like Warren Buffet, I have made a double-digit annual return for years now."
I am down 19% so far in 2008 but, from 2005-2007, I made 13%, 14%, and 22% a year, respectively.
If I finish 2008 at -19%, then I would have earned 6.22% per year from 2005-2008.
If the reviewer feels those are low returns, then I guess the reviewer is looking for triple digit returns and aggressive systems.
I really take issue with the idea that a bank account could earn more.
My book is recommended on two different Amazon lists:
Contrarian Stock Investing Systems (http://www.amazon.com/Contrarian-Stock-Investing-Systems/lm/RKU02DVM0IS13/ref=cm_lmt_srch_f_1_rsrsrs0)
Alawys successful formula (http://www.amazon.com/Alawys-successful-formula/lm/R22XC7QZ0IDLKH/ref=cm_lmt_srch_f_2_rsrsrs0)
The creator of the first list writes that he tested my system against buy and hold on the SPY (S&P500 ETF) from 2001-2008, and my system returned 2% while Buy/hold returned 1.7%.
So, yes, a bank could beat that return but that is because of market conditions. I beat the market.
Also, I wouldn't recommend using my system on a diversified index fund. It should be used on a portfolio of stocks or narrowly focused funds, because the formula is applied independently to each portfolio component. Then, we take advantage of volatility - while still having the overall diversification.
I made my double digit returns because I was trading each stock on its own. Trading a diversified portfolio as a single unit (like the SPY example) dampens out volatility.
Review July 27, 2008 1 out of 2 found this review helpful
A solid trading system that is based on buying lower than you sell (like any profitable trading system so nothing new there). Doesn't appear to be suitable for geared trading or FX. As the title states it is for stocks (ungeared). The system also doesn't produce realizable profits in a bear (short) market but rather buys in at the lower price. The system is based on a constant value trading system (ie. keeping your value of open positions constant). The system is not a scam. As the author states, it doesn't have a very high rate of return & after some analysis I would agree. I would almost think that money in the bank would do nearly as well if not better in the long term.
