Brief Background: I am an Institutional Money Manager and Manage several Portfolios with varying Mandates (Long Only, Long Short, Event Driven). I attended the above talk that is a prelude to a two day course conducted by Ronald K.
Here are my personal thoughts:
1. In the professional world, his supposed track record of trading (by showing trading contracts or screen shots from trading accounts) is non-admissible and should be completely ignored in your decision on whether to sign up for his course.
2. If he applied for a job with any trading house using the same credentials, we would completely ignore and throw it out.
3. For any trading track record to be admissible and taken seriously, it needs to be audited by one of the Big Four ( Deloitte, KPMG, PWC, Ernst and Young) for authenticity.
4. In the real world, anyone or any system, that is able to yield incremental values of 60% and above success in trading; asset management houses, money managers, global hedge funds will pay ten's of millions of dollars for even 1% incremental success above the 60% for any system or professional / prop trader.
5. In my professional career, I have seen many trading systems such as Algorithmic Models, Quant Models, High Frequency Trading Systems that institutions invest millions of dollars on just to get a slight 1% - 2% edge over other institutions.
6. One major fundamental flaw about his claims about hidden buying and hidden selling by Big Boys, are the example of stocks he uses. All his examples involve penny or speculative stocks. Big Boys (if my understanding is correct refers to Institutions and Corporate Investors), DO NOT get involve in stocks with market capitalisation of below several billions $$$ in free float. Penny Stocks market capitalisation are usually between $10m to $50m.
7. The only people who play Penny stocks are Remisiers trading on their own accounts, Retail Investors (Speculators) and Consortiums or Syndicates. Unless you are part of the syndicate, pennies should be avoided at all course. Volume in penny stocks are usually churned by a consortium of 5 - 6 traders buying and selling amongst themselves. Its like a gambling den in geylang running scams. The entire table are made up of their own people. The moment a stranger joins in, he is fresh meat. Thus, in penny stocks, once there are enough outsiders lured into the counter, the syndicate dumps everything to you and liquidity with diminish instantly (from millions of shares traded daily to less than 10 lots or nothing a day), There is no real hidden buying or hidden selling in Pennies, its just manipulation by syndicates.
8. I am sure Ronald K makes money on his speculative trades probably 55%- 60% of the time, however, I seriously doubt his claims of 90% to 99% success rate.
9. His methods to trading, commonly known as HFT (High Frequency Trading) are no match for black box / robo trade / algo systems that enters and withdraws trades at lightning speed of milliseconds to nanoseconds.
The biggest take away from the course would probably be membership into Ronald K's syndicate that could possibly move the markets, which is extremely easy in penny counters.
My suspicions are his main source of income are from the training courses he conducts rather than from his personal trading.
His fees of $3k to $5k for training isn't expensive for professional intensive courses. However, unless it can be proven that his students or delegates can attest to their success after undergoing his training, the value of the course is iffy at best.
Ian 1. Posted on 18 Oct 2015.http://www.mycarforum.com/topic/2698993-anyone-went-for-ronald-k-course/page-2
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Here are my personal thoughts:
1. In the professional world, his supposed track record of trading (by showing trading contracts or screen shots from trading accounts) is non-admissible and should be completely ignored in your decision on whether to sign up for his course.
2. If he applied for a job with any trading house using the same credentials, we would completely ignore and throw it out.
3. For any trading track record to be admissible and taken seriously, it needs to be audited by one of the Big Four ( Deloitte, KPMG, PWC, Ernst and Young) for authenticity.
4. In the real world, anyone or any system, that is able to yield incremental values of 60% and above success in trading; asset management houses, money managers, global hedge funds will pay ten's of millions of dollars for even 1% incremental success above the 60% for any system or professional / prop trader.
5. In my professional career, I have seen many trading systems such as Algorithmic Models, Quant Models, High Frequency Trading Systems that institutions invest millions of dollars on just to get a slight 1% - 2% edge over other institutions.
6. One major fundamental flaw about his claims about hidden buying and hidden selling by Big Boys, are the example of stocks he uses. All his examples involve penny or speculative stocks. Big Boys (if my understanding is correct refers to Institutions and Corporate Investors), DO NOT get involve in stocks with market capitalisation of below several billions $$$ in free float. Penny Stocks market capitalisation are usually between $10m to $50m.
7. The only people who play Penny stocks are Remisiers trading on their own accounts, Retail Investors (Speculators) and Consortiums or Syndicates. Unless you are part of the syndicate, pennies should be avoided at all course. Volume in penny stocks are usually churned by a consortium of 5 - 6 traders buying and selling amongst themselves. Its like a gambling den in geylang running scams. The entire table are made up of their own people. The moment a stranger joins in, he is fresh meat. Thus, in penny stocks, once there are enough outsiders lured into the counter, the syndicate dumps everything to you and liquidity with diminish instantly (from millions of shares traded daily to less than 10 lots or nothing a day), There is no real hidden buying or hidden selling in Pennies, its just manipulation by syndicates.
8. I am sure Ronald K makes money on his speculative trades probably 55%- 60% of the time, however, I seriously doubt his claims of 90% to 99% success rate.
9. His methods to trading, commonly known as HFT (High Frequency Trading) are no match for black box / robo trade / algo systems that enters and withdraws trades at lightning speed of milliseconds to nanoseconds.
The biggest take away from the course would probably be membership into Ronald K's syndicate that could possibly move the markets, which is extremely easy in penny counters.
My suspicions are his main source of income are from the training courses he conducts rather than from his personal trading.
His fees of $3k to $5k for training isn't expensive for professional intensive courses. However, unless it can be proven that his students or delegates can attest to their success after undergoing his training, the value of the course is iffy at best.
Ian 1. Posted on 18 Oct 2015.http://www.mycarforum.com/topic/2698993-anyone-went-for-ronald-k-course/page-2
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"Some fake guru likes to make out that he makes millions a year trading penny stocks but he operates nothing more than an elaborate front running scheme. Whenever he buys a penny stock he tells his thousands of followers to do the same. They then buy the stock and because of the poor liquidity that pushes the price up and he exits for a profit. The problem is, his followers are never able to get in at the right price because of the very low liquidity and they never get out at the right price either. So they end up losing."
When the fake guru needs to show some winning trade records, he will do a front running scheme. First, he sends out an alert a few days in advance to his followers to watch out for a stock. Then he will enter himself and show some price movement. Then he asks his followers to enter to jack up the price further and he can exit for a profit. He uses this trade to show how profitable he is. The people who entered early will still earn some money if they exit quickly for a small gain. People who came in later will bear the losses. The few people who made money by exiting quickly may feel grateful and start to send thank you messages. These are then used as marketing materials to attract new victims. His winning trade record also becomes marketing material to show how "successful" he is at predicting price movement.
Sometimes, the fake guru doesn't even enter the trade himself. As long as there is a big enough following, there will always be people who entered and exit early and made money. These people become "real life proof of his success" with their thank you messages, winning trade records, etc.
With such a scheme, the fake guru earns twice from the victims, over and above the money he makes from the front running trades. Firstly, they have to pay to attend his course. Otherwise they won't know how to use his technique to profit. Secondly, they will have pay to subscribe to his alert service.
Spread the word. Don't be the fool that fall for such schemes.
Stockbroker. Posted on 3 Nov 2016. http://www.mycarforum.com/topic/2698993-anyone-went-for-ronald-k-course/page-2
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