Sure-win schemes not a sure thing

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#1
This serves as a warning of sorts to everyone. It's pretty blatant - look at the marketing hype, inflated claims and the so-called "returns" and you know it all can't be true. Yet, people fall for it!

The Straits Times
www.straitstimes.com
Published on Oct 28, 2012
Sure-win schemes not a sure thing

Some investment courses claim to have high hit rates but experts advise caution

By magdalen ng

The prospects of finding a sure- win formula for successful investing, or a get-rich-quick scheme that delivers the goods, have obvious attractions to investors.

Who would not want to attend a workshop offering software that somehow magically does all the heavy-lifting, such as picking winning stocks and currencies?

Experts, however, advise caution, and to apply the old dictum: If it sounds too good to be true, it probably is.

Lately there has been no shortage of purveyors of such schemes ready to reel in would-be believers.

Many companies holding workshops of this type have also taken out newspaper advertorials in which investment gurus boast of their excellent trading track records.

These include PowerUp Capital, founded by Mr Mansinghani Kishore Mirchumal, more commonly known by his moniker Kishore M.

One course at PowerUp Capital is a forex workshop which purports to equip participants with a strategy allowing them to "trade forex with 100 per cent accuracy". It also claims to teach them how to make a profit regardless of market conditions.

Do you need experience to trade? In its frequently asked questions segment, the reply from the company is: "Most people who have experience will have to 'unlearn' or change trading habits, while those who have no previous experience will be learning the right approaches from the beginning."

Speaking to The Sunday Times from his office in Newton, Mr Mirchumal said: "We can achieve about 80 per cent accuracy. It is very simple. Our software will screen through all the currency pairs and alert the investor to the ones which will be profitable."

He said his strategy uses a three-month averaging concept, and is based on the notion that currencies tend to trade within a range. "You need to implement a stop-loss limit. Most of the people who lose money are those who do not have the discipline to follow this rule."

However, some experts are wary of the high hit rates that the workshop teachers and investment gurus purport to be able to help investors achieve, and urge caution before signing up.

Mr David Gerald, chief executive and president of shareholder advocacy organisation Securities Investors Association (Singapore), said: "In considering any software, investors should ask the important and basic questions to ensure what is being sold is what meets their needs."

Financial advisers generally caution against dabbling in investments promising unusually high returns. Many of these companies are usually not regulated by the Monetary Authority of Singapore.

What Singapore's regulator does is set out rules for issuers of shares, bonds, unit trusts or other capital market products. It also regulates the financial intermediaries and infrastructure operators such as exchanges and clearing houses for capital markets products.

Another company offering tempting returns is T3B. It has a course teaching participants how to use software it has designed, which will pick stocks to buy in both bull and bear markets.

Previously, the course workshop cost more than $3,000. Now, T3B conducts the classes for free, and encourages participants to donate to charity instead. However, there is a yearly subscription of about $400 if customers want to utilise the software, hosted online.

Mr Eliezer Wee, non-executive director of WPG Group, the parent company of T3B, explained that all the subscription fees go to the external company hosting the software. T3B also conducts three mentorship sessions weekly, which participants of the courses can attend to learn more and share experiences.

When the company used to charge for the courses, it offered a money-back guarantee but Mr Wee added that, most of the time, investors lose money because they fail to adhere to the rules set out by T3B in using the software.

Mr Benjamin Ang, 31, who was a customer of T3B, did not make a profit using the software.

He claims to have followed the rules as set out by T3B, and has even sent screen captures to the company to prove his point.

His first e-mail to T3B was in May, but he has been unsuccessful so far in getting his money back.

Mr Ang, a writer, said that about two months after his first e-mail to T3B and, not receiving a response, he questioned in a third e-mail if the company was looking into the matter. Since then, Mr Ang said, there has been "no contact from Keane Lee or anyone from T3B".

Mr Keane Lee is the inventor of the T3B system.

T3B confirmed that it is aware of Mr Ang's complaint, but noted that Mr Ang has yet to furnish them with details about his trades. Mr Ang said that this is untrue.

Yet, there are also success stories, like that of Mr Henry Kang. The 40-year-old started trading with the T3B system in April, and has made more than 100 per cent returns, even though he declined to reveal how much he has gained. He is thinking of quitting his full- time job to trade.

Mr Kang, who works in a multinational company in the semiconductor industry, said: "I started small, but I managed to do well, and my confidence increased. It is a process of learning, growing and improving. Of course, it is not all that simple, and I was strict about following my 8 per cent cut-loss mark."

There are consumers who have faced issues with such investment workshops and have also filed complaints with Singapore's consumer watchdog.

For the first nine months this year, the Consumers Association of Singapore (Case) received 11 complaints against investment courses, the same number as for the corresponding period last year.

It added that complaints against PowerUp Capital pertained to its advertisements and sales tactics and that Case will continue to look into the matter.

Case executive director Seah Seng Choon advises investors to research a company's profile and its reliability before committing to any investment, especially if a large amount is involved.

He said: "They should be extremely cautious if the investment is not regulated by the authorities. They have to be prepared to bear very high risk for investments that are not regulated by the relevant authorities."

Also, Mr Seah recommends that investors put down in writing any terms or conditions, and make sure that they are not just acknowledged verbally.

"If in doubt, potential investors should ask for further substantiation in order to prove the claims," added Mr Seah.

songyuan@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
sure-win methods?!! haha!! Big Grin

GIC/TEMASICK will need this more!!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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#3
(30-10-2012, 10:59 AM)brattzz Wrote: sure-win methods?!! haha!! Big Grin

GIC/TEMASICK will need this more!!

Ha! Ha! Ha!
Sure! Sure win!
Sure win to lose!
By now, everyone is a "millionaire"
Ha! Ha!TongueBig Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#4
I know someone who was using the T3B system. It really worked! He made 6-figures profits.....

Wait a minute... That was during the BULL market. When the BEAR came along.... all the profits vapourised into thin air.. even the original capital.. I guessed it must be a case of 'because they fail to adhere to the rules'....Rolleyes

My point is, most if not all SURE-WIN systems will likely work well in a BULL market situation, be it stocks, options, gold,... The real test is in a BEAR market situation. That's when reality comes crashing down... like Humpty-Dumpty... you can't put back the pieces together again! Confused
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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#5
Most shorting system will works in bear market i guess. Smile

Just my Diary
corylogics.blogspot.com/


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#6
(30-10-2012, 11:55 AM)corydorus Wrote: Most shorting system will works in bear market i guess. Smile

It should work beautifully provided you don't have any long positions. Who has been long enough in the market doesn't have any long positions?
For me i just sell some of my shares to keep some cash for hedging.
What's your hedging method? Care to share?
Thanks.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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