Elliott Wave Hype

A very “promising” email arrived here today:

“You will also discover how you can learn all the forecasting and trading secrets that allow our traders at XXX to make profitable calls 95 times out of 100 and pull average returns of 445%, 59%, 13%, and 701% on ForEx, indices, stocks and commodities.”

Wow. 95% accuracy! Come on. Give me a break.

This email goes right to the great desire so many seem to have — they want to be “right”. The average trader thinks accuracy is the goal. They mistakenly think that if you have high accuracy on your entries that you will make a fortune.

What if 95% of the time you make pennies and 5% of the time you lose thousands? What if you knew great traders have accuracy in the rough range of 35-50%? More importantly put aside high accuracy entry fallacies for a moment, when do you exit? Do you ever hear the charlatans bragging about “exit” accuracy? No.