“Free” Optionetics seminars in Connecticut could cost you your life savings, blow your money at one of our casinos, or give it to a charity
In case you saw the full-page ad in Sunday’s Courant for the “free” Optionetics seminars offered today and Wednesday in Hartford, Groton and Cromwell: do youself a favor and go gamble at a casino instead.
While options trading is a wonderful tool, it is only for VERY sophisticated investors. It is not for amatours or even those who have only invested in stocks and mutual funds.
I am not a professional financial advisor, but I have been an investor for 40 years and was the Courant’s business editor for 12 years. Having made and lost hundreds of thousands of dollars playing stocks, options and ETFs, I can tell you that option trading is only for a few. It is not for me. Its easier to trade in Exchange Traded Funds (ETFs) which you can use to hedge your positions easier.
I have no problem with newspapers selling full-page ads for these types of “free” seminars, which can be hard-sell pitches to sign up for educational programs that cost thousands of dollars, that is before you even buy or sell your first put or call.
Nor do I have a problem with Optionetics teaching people how to use options to protect their investments and make money.
What I do have a problem with is their misleading advertising, suggesting that you will make lots of money. Go on Google and search for Optionetics and complaints. There aren’t a lot of complaints, but the few that are there give you a flavor of what to expect.
The reality is that this is the most difficult market I have ever witnessed to trade in. The market turns on a dime, there are huge computer programs that make billions of trades, making it impossible to tell what impact they will have on a stock, a sector or the whole market from minute to minute.
We could be at a temporary market top, or we can still go higher. No one knows.
Two things I do know, is that Optionetics should not be promoting option trading for the general public and that since it is now an advertiser, Courant consumer writers can’t write what I just did.
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4 Responses for ““Free” Optionetics seminars in Connecticut could cost you your life savings, blow your money at one of our casinos, or give it to a charity”
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I am one of those unfortunate 336,000 (and counting) souls who were ‘taught’ to trade optionsby Optionetics.I was with optionetics for over a decade and I can tell you that their basic strategies is to suck as much money out of you as possible bit by bit.There is always something you need to purchase to make your trading better,they will teach you just enough to be a menace to yourself but nowhere enough to trade successfully or independently.The moment I joined it was constant pressure to buy the latest miracle software to complete your trading education-Advanced Get,Profitsource the biggest scam software of all,Value gain,etc.The only one half decent is platinum but it is way overpriced and going up in price constantly.The vast majority of the optionetics instructors live on the pay from teaching but can’t trade successfully enough to sustain themselves independently although they will imply otherwise.It is easier to find a needle in a haystack than to find a successful optionetics student who became rich using optionetics taught strategies.How do i know?I was there over 10yrs and attended numerous seminars including their mega one in San Jose,Ca called OASIS.A word is enough for the wise, a fool and their money is easily parted and that is what will happen to you if u have anything to do with this Scam organisation.Consider yourself WARNED becos I dont want to have to say “I told you so”!
It’s too bad that you didn’t bother to talk to any of the 336,000 people that we’ve taught to trade options since we started in 1993.
Most people blindly put their money in the stock market. Those folks rode the Dow down from 14,000 to 7,000. (Hopefully they also rode it back to 9,280, but they are still way down from the peak!)
We teach our students several things. First, be traders rather than passive investors (this usually means spending some time every week on your finances rather than invest and ignore). Second, never trade with money you can’t afford to lose. Third, never do any one trade with more than a small percentage of your account. Fourth, use the risk control of options as insurance against losses, and the leverage of options to increase your potential for profit.
We’re the first to say that trading options isn’t for everyone. You have to learn the rules and strategies to be successful. But making a blanket statement like your headline makes is misleading and unfair.
Another title for this seminar should be:
“How to make a small fortune with options? Start with a large fortune.”
As an investment advisor, option trading is something that even the professionals get burned on frequently. This is no place the “average” investor.
Going to Foxwoods would be less risky than trading options. Think about it: If the promoter/author of the seminar did have the secret formula he wouldn’t teach it to anyone else, he would take the profits for himself. How to make a fortune in options? Con others into thinking that they can make EASY money trading options by holding seminars and selling books. There is no such thing as EASY money, only sitting ducks for the seminar promoters. In this economy there are many desperate people looking for an answer to their prayers. THIS IS NOT IT! The psychological lure of instant riches is hard to resist. Run, don’t walk away from this (and any other) get-rich-quick scheme. Don’t say that no one warned you.
Thank you George! GREAT ARTICLE! Aren’t they the same ones that have infomercials late at night?
I happened to read somewhere today that consumer writers are being hushed about advertisers. I’ll continue to look for the link and post it when I find it.