Expert: Steven Taylor - 8/23/2005

Question
Hello Steven,

Thank you for the book you have recommended before, WSJ, I haven't gotten far in it but I am still reading it every chance I get.  

I am writing today in regards to couple of computer software I saw for stock trading.  For example, 4X Made Easy and Opionetics seems to be the big two out there.  

Would you happen to have any experience with these softwares?  Are they credible? reliable? Would it be something that person like myself who is just entering stock market should use?

Thank you for your time Steven,

Mike  

Answer
Hi Mike. Good to hear you are working on the WSJ book. Once you get through that, you will probably feel you can take on the entire financial world!

Regarding these stock trading softwares, I don't know the 2 you mention. I do know that in general, stock trading software like that is not a good idea. They don't work very well. You might as well flip a coin - its cheaper and in some cases, more reliable. If it were that easy to make money using this software, they would be using it themselves instead of paying thousands, if not hundreds of thousands, of dollars to buy commercial airtime for their constant infomercials.

Any trading program works by exploiting inefficiencies in the marketplace. BUT, a market has a way of eventually closing these inefficiencies on its own. Logically, a program being sold worldwide on national TV probably isn't exploiting any market inefficiency as it would have been closed long ago. A simple turnkey software package? Probably not the answer to making money in the stock market.

Hope this helps,

Steve Taylor