Safely compounds your nest egg more than 20% per year on avg
This review will be different from the others, more historical. I met Marco, the creator of LST, in 2000 at an investor conference. He stood out. He was honest, intelligent, humble, articulate, focused, a natural teacher, and he made money with a disciplined, strategic system for going long or short. At subsequent meetings he showed the group the stocks he shorted as the Nasdaq meltdown progressed. He made 70% shorting a basket of stocks on just one signal, while I was getting killed in my value stocks. (They became a better value! ). Then he went long while a sharp rebound occurred, then re-shorted a new list of stocks. He used the QQQ system to trigger a go-long or go-short signal, and then a fundamental approach to pick stocks to sell short or buy long. (Now the long-short signals are still triggered off the Nasdaq; and - the Q's or ETF's - are used to trade the market up or down). I got on his friends and family list in 2001.
For years I watched the system trade, and I went over and visited some of his friends who were using the system and making very good profits. One guy bought his house for cash and credited Long short timing. He used the signals to trade stocks and options. I had my own thing using insider trading and fundamental research. I am slow to change. I never saw him have a losing year -- although this year he is flat in late Nov 2011 (80% of Hedge funds I've heard are having a losing year so far), so who knows how the current short signal will play out. He is excellent at managing risk, and making it safe to trade the bulk of your capital, with his core system, given the reasonable drawdowns. His long term performance since I met him currently hovers just under 30% per year compounded over five years. His goal is to exceed 20% per year over a full market cycle (4 or 5 years). And I've watched him do this for two market cycles. Obviously, he has exceeded the 20% goal, but that doesn't mean it will happen in the future, but I am confident that it will. Catching the big move down in 2008 was a life altering change personally. I didn't lose 35% like the majority did, and put all the money + selling short profits back in mid-March of 2009 on his long signal. It was emotionally tough for me to take that trade. I was very frightened. The system has been free for a long time, but if he listens to me, it won't be in the future. It's just too valuable.
He is very steady emotionally. He only follows his system. He isn't interested in this chart or that chart, this indicator, that guru, or whether his feelings "tell" him to do something. He only follows the system, and when the system says to go long. He goes long the Q's plus options. Or to go short. Then he sells the Q's short and employs options. He goes after intermediate trades, so usually, the system trades 5 to 10 times a year. That's it. Lately, with the volatility it's been more often, but that isn't normal.
What did I learn from trading this system, since 2004 with the bulk of my money? Don't over-think it. The system keeps you on track. And that will compound your profits over time. Anyone who can, over a five year period, consistently deliver greater than or equal to 20% a year (despite what the market is doing), will change your life, if you have sufficient capital to start with, and you develop the trust to act on the signals. It took me a while to develop the trust, so sometimes I second guessed the system. Most often that would be before a big move, that made good money.
I understand the developing the trust part is hard for someone new to this. That took me a long time. Longer than it should have, but I follow his system now, and it keeps me from losing money. That isn't to say there couldn't be three or, on rare occasions, four losing trades in a row. This year was one of those rare occasions. But, so what. The drawdowns were small, if you were not using leverage, and over time it compounds your money. Do you need to know anything else?
Read his investment rules, FAQ's, and Finding Success in the Stock Market which will teach you about the psychology of trading. It applies to any method you use to make money.
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
1 of 1 people have found this review helpful.
Was this review helpful?