If you look at the links on his site about the 40 and 100 greatest traders most did like one dumb trade and were considered hero’s & greatest traders. You can’t make a living off of one dumb trade unless it is a huge position and you can retire off it. It’s like the casino, almost all give it back after they had some dumb luck at the gambling table.

I have heard from many that they can’t make money off his system and would never buy into it. Quite frankly if those quarterly results he represents on his website are really true then he should have a multi-billion hedgefund and would never have to worry about money again.

Buffets’ system is extremely profitable because he doesn’t look for big breakouts. He looks for value and good management. Undervalued stocks with solid management will always rise over time. That’s Buffets logic, not mine. But I do agree with it, as this is a sustainable model over time. It’s common sense, if people keep buying at costco and starbucks then the companies will continue to grow and generate profits, again with good management of course.

Nobody has ever generated those returns from the contest and he may have been dumb luck. Also if you look at the position hold durations they are on average 5 weeks (for the samples I checked at least), hence he is not a day-trader as many try to credit him for. Also the most successful traders you will never hear of because they don’t want anyone to know, so I am sure there are plenty that nobody will ever know about.

One thing I must say is that there is always “something” good in any program you buy into and any book you buy related to financial markets. You just have to be smart enough to know what is good or works for you. Many times the simplest analysis can propel you higher. Fibonaci was the best analysis creator and he never even knew the market existed. Fn-2 = Fn – Fn-1 (this is the negative version)