A Word of Warning on Trading Vendors


I received an email over the weekend from a woman who wanted to know about the forex trading system being offered by a particular vendor. She asked me because the individual in question was giving away what he referred to as an ebook related to candlestick analysis as a free download on his sales page, one that had my name on it. That ebook was an article I wrote for Stocks & Commodities (aka TASC) back in the mid-1990s. Steve Nison, the first real western proponent of candlestick charting methods, actually called me to discuss the article when it was published.

But I digress.

I’m not really sure why this vendor was giving away copies of the article, but that’s really neither here nor there. The fact of the matter is he shouldn’t have been. The article is copywritten material. The folks at Stocks & Commodities own those rights (not me). I’m pretty darn sure they didn’t give this forex trading system vendor permission to give it away on his site. I sure as heck know I didn’t – not that permission was mine to give anyway, but it’s always good practice to get permission to use someone else’s name and content.

The fact that someone is so blatantly passing along material he has no right to pass along gives you quite a bit of insight into the individual in question. Ethical vendors would never pass along something which they do not have permission to distribute, nevermind foolishly putting themselves at risk of legal action.

I’m not sure where this particular vendor stands on ethics or legal understanding. The one thing I am sure of is that I would never do business with him and would suggest you avoid him and others like him as well.

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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
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  • http://tradingbots.blogspot.com/ Tyro

    The vendor acts not merely unethically but illegally and you warn us not to do business with them. Sounds good. How can we avoid doing business with them if you’re protect them by not giving us their name?

  • http://www.theessentialsoftrading.com John

    Tryo – You can understand my unwillingness to draw any attention to folks like that. If you come across someone giving away a copy of the abovementioned article, you’ll know the score. :-)

  • Stan Hoffman

    Sad to say, in the unregulated forex world, such behavior is the norm.

    One of the better sites that I have found is:

    http://www.forexpeacearmy.com

    On that site many individuals, from the community and from the vendors, are able to post their views, opinions, and experiences realting to different products, vendors, and brokers. As always, don’t take anything at face value, and do your own due diligence. But, sites like those help to speed up the research process.

  • ukoptions

    Easy theft (or “failure to consider paying”) is intrinsic to Web 2.0

    There’s a whole book on this subject (“The Cult of the Amateur: How Today’s Internet Is Killing Our Culture and Assaulting Our Economy” by Andrew Keen) which points out that the very structure of Web 2.0 intrinsically allows folk to take material and “mash it up” (copy, and then possibly modify to their own whims), without any concern for the original author.

    Andrew Keen asks how authors and musicians will be able to maintain sufficient income when so many other people can “take” their work and in no way think to pay the originator for what they’ve taken.

    Although I see a reviewer on Amazon claims that an associated book (“We-think: The Power of Mass Creativity” by Charles Leadbeater) does answer this conundrum – she claims in her review: “It suggest answers to those obvious questions like `if everyone is sharing all their knowledge how is anyone going to make a living?’ (Review at: http://www.amazon.co.uk/review/R1OE17YHFLK9DE/ref=cm_cr_rdp_perm)

    Sadly I haven’t read this second book so I don’t know the basis of his optimism – but I would have thought that the problem of “easy copying without having to even consider paying the originator” is not solvable, and authors and musicians face a financially poorer future now than was inevitable in the past (as Web 2.0 didn’t exist then to make it so easy to “not get paid”).

    Indeed observers of the music industry says that “smart musicians” have begun to think “outside the box”, rather than just moaning, they’ve been thinking of “ways around” this problem – “if this is the new way of things – what can we do?”

    Guess what they decided? If all those naughty folks out there can get digital copies of our songs illegally for free, let’s not bother about trying to protect that source of income – let’s not rely on that as a major source of income.

    Instead they see ticket sales for live performances as their major income stream (as its so very difficult to duplicate the feeling of being at a live concert!), plus merchandise sales, and “how to play our songs” guide-books for beginning guitarists.

    They’ve simply accepted that theft is the new reality and re-focussed on other avenues for income.

    But its a real sad reflection on the current “way of the world”that they don’t get the rightful income from work they have originated.

  • http://www.theessentialsoftrading.com John

    Stan: I understand that the guy who founded Forex Peace Army is considered a fraud and potentially a criminal. I’ve never visited the site myself, though.

    ukoptions: I don’t disagree with your basic discussion. Where I see your argument cracking a bit, however, is in the fact that where music is concerned those “stealing” the music aren’t pawning it off as their own, nor are they attempting to use it for commercial purposes. It’s primarily for personal use.

  • ytctrader

    John,
    Well done for posting this. I’ve come across another site (possibly the same person) offering a Stocks & Commodities article series by Toby Crabel, on trading the opening range breakout. It seems they’ve got hold of a number of articles, not just yours.

    My inbox is continually flooded with these offers, which although offering little in value with respect to trading, I quite enjoy reading from a marketing & consumer psychology perspective.

    Unfortunately the only thing that will get rid of these vendors from the marketplace is if consumers stop buying their rubbish products. Unfortunately I can’t see that ever happening. Their promise of easy riches for no effort is just too tempting for the ignorant and the greedy. These vendors are simply offering what the public wants.

    ukoptions, I’ve also noticed the music trend to giving away free downloads. I imagine this may work for the larger established artists – increased downloads leads to increased public visibility leading to increased radio airplay and potentially greater attendance at concerts (at increased entry fees though to compensate). I don’t know where this will leave the new, up & coming artist, who isn’t yet widely known and who will struggle to get distribution of their song / clip, even when it’s free.

    Interesting times ahead.

    Lance.

  • Jacky

    I myself have just found 3 particular websites offering more than 20 ebook downloads each for free, by various authors. One of them has Steve Nison’s books on “Beyond Candlesticks” and also ” The Candlestick Course”.

    I definitely concur with Lance’s (ytctrader) statement above, ie. These vendors are simply offering what the public wants. Indeed, it is interesting times ahead. It is really worrisome the extend to which these vendors would go, to offer the public what they want. In any case, we need to be cautious at all times, especially when receiving lotsa emails offering various promotions. End of the day, it all boils down to the sales gimmick that these vendors use, integrity aside, to attract the public to their sites.

    So, fellow bloggers and traders, do be careful. If in doubt, do counter check with your fellow traders / bloggers for effective feedback.