Chris. This is an old argument and the problem is the first is critical. It protects the good people and is used as a defense by the worst crooks. Wade Cook's defense was the first and he had two best selling books.
Some of the best educators fly under the regulatory radar. The potential problems going forward are that nobody will fly under the radar. If you charge for a service, advice or guidance you are currently already subject to somebody's regulation. I fear it's just gonna get worse
ISE educational presentations are now available via the iTunes Music Store. Visit Option Education @ Your Fingertips for free ISE podcasts. Sent from my Blackberry. Alex Jacobson ajacobson@ise.
From: OptionClub@yahoogro
To: OptionClub@yahoogro
Sent: Tue Jun 30 19:14:34 2009
Subject: [TheOptionClub.
Interesting thought. In today's pro-regulation atmosphere I'm sure that
there is pressure to do many things. The one protection that
independent educators have had is their 1st Amendment right to free
speech. We'll have to see how that squares with big government's desire
to control more aspects of the financial industry.
Christopher Smith
TheOptionClub.
--- In OptionClub@yahoogro
wrote:
>
> My other concern and this is premature at this point, but I suspect
the new investor protection proposals will pretty much put all the
independent educators out of business. Like the old independent MM or
local. They were almost all put out of business by the cost of
technology. I expect the education business that is not part of a
brokerage house or exchange will be regulated out of business. This will
consume the good and the bad
>
>
> ISE educational presentations are now available via the iTunes Music
Store. Visit Option Education @ Your Fingertips for free ISE podcasts.
Sent from my Blackberry. Alex Jacobson ajacobson@..
>
> ____________
> From: OptionClub@yahoogro
> To: OptionClub@yahoogro
> Sent: Tue Jun 30 17:55:14 2009
> Subject: [TheOptionClub.
>
>
>
> Alex,
>
> Thanks for the information. My impression is that brokers with legacy
> computer systems have more difficulty and that the new guys like TOS
and
> OX have a significant edge because their systems are built from the
> ground up to margin options positions. I imagine the trustee has to
> take that infrastructure into consideration.
>
> Also, I agree with and will your thoughts about paid educational
> services. I would be cautious about going out-of-pocket any
significant
> sum for training that is to be delivered over a period of months or
> systems that require proprietary data feeds. Times are tough and there
> is a lot of competition in this market space. My personal opinion is
> that the high priced hotel seminar model is likely no longer viable in
> the long term, with that upper end of the market shift to more
> personalized mentoring. It's just hard to justify spending $3,000 for
a
> two-day seminar when for $6,500 you can train with a guy like Dan
> Sheridan. When you consider that some of the outfits have been
charging
> total cost of $20,000+ to work through their full curriculum, that
> $6,500 begins looking cheap.
>
> Christopher Smith
> TheOptionClub.
>
> --- In
OptionClub@yahoogro
"Jacobson, Alex" ajacobson@
> wrote:
> >
> > There are two issues with all option trading in retirement accounts.
> First there is no legal restriction on any strategy or product in any
> form of retirement accounts. Cash products, options and even futures
are
> legal as long as the strategy or exiting the strategy does not require
> the account to borrow. So the strategy needs to be well capitalized.
So
> there has been lots of discussing of spread trading and cash secured
put
> trading as being allowed. This is true, but bear in mind if you lift a
> leg the brokerage house either will stop you or automatically lift the
> other leg. Cash secured puts are common, but again keep in mind when
you
> de leverage the put it is simply the same economics as the covered
call
> with fewer entry positions. Not necessarily less exit positions
> > The second issue with retirement accounts is that there is also a
> trustee for the account and this is where things can get sticky. In
some
> cases the brokerage has uses an arms length in house trustee or uses
and
> outside trustee. The trustee can also set standards which may or may
not
> align with the brokerage houses ambitions. This trustee relationship
is
> often where the strategy restrictions may reside. Some years back a
> Chicago based trustee that allowed futures in IRAs actually failed due
> to fraud - not the strategies just simple fraud. It is not uncommon
> that the restriction comes from the trustee. Is on outside trustee
> better or worse - who knows we could debate forever. Many argue that
if
> your IRA exceeds SIPC protection and outside trustee could be a good
> idea
> >
> > On another topic and just a personal cautionary note. This is
proving
> to be a very difficult time for many of the paid educational services.
I
> would expect to see a ton of free deals and a major increase in
> advertising and offers, probably even more consolidation. IMHO and
this
> is my personal opinion only I would be very cautious here of prepaying
> and extended education program or buying anything that requires lot's
of
> ongoing support with a really good sense that the vendor has a viable
> balance sheet. These are tough times in the paid educations business
and
> IMHO we will see fewer players on the other side of the current
economic
> environment.
> > Good trading
> >
> >
> > ISE educational presentations are now available via the iTunes Music
> Store. Visit Option Education @ Your Fingertips for free ISE podcasts.
> Sent from my Blackberry. Alex Jacobson ajacobson@
> 1(917)2243711
> >
>
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