Pinoy trader claim of 300% gain in stock profits disputed by Wall Street traders

Posted on February 5, 2011

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According to Charlesworth, he gets only around 3% to 5% profit

gain on his online day trading with Fidelity Investments as his broker,

in the US and does not believe that any Filipino trader or investor can earn 40%, 60% or

even 100% on any stock in the Philippines.

  DAVAO CITY, PHILIPPINES —- A Filipino stock trader

here who claimed to have gained 300% profits in the Philippine

stock market after one year has been disputed by a number

of US stock traders on Wall Street.

“How can a Filipino based in an obscure island

some where in the Pacific be able to understand the stock

market enough to make that kind of profit ? “ was the reaction

of US-based stock trader Peter Charlesworth who saw the

story on the website of Goldelyonn Growth Fund at www.

tradingfund.wordpress.com.

Charlesworth said the claim is “unbelievable” and raised

some suspicions that the figures backing up the claim may have

been rigged “to make that outrageous claim”

Jamil Ahmed, a stock trader at Goldelyonn said he stands

by the claim, stressing that the exact figure was 342% using a

small capital of only around P25,000 which was invested in fast

rising local stocks starting January 2010 in the Philippine stock

exchange.

“This was actually just an experiment to find out if it’s

possible to adopt the trading plans and strategies of great US

traders like William O’Neil, Richard Driehaus, Jesse Livermore,

Martin Zeig , using local Philippine stocks,” Ahmed pointed out.

After 12 months around the end of December 2010, according

to Ahmed, the value of his stock holdings grew to around P85,000

which is more than triple the amount he now has after making profits

of 20% to 45% on several of the Philippine stocks he bought and sold

with durations of 30 days to 90 days.

Using the same trading plans and strategies, Ahmed said it

is now possible for their growth fund Goldelyonn to make this kind

of superior performance with investors who have P500,000 or P5 million

committed to them for fund management.

“Even if we make only 40% to 60% gain on investors’ funds,

that’s much better than most mutual funds or bank trust funds” says

Ahmed.

According to Charlesworth, he gets only around 3% to 5% profit

gain on his online day trading with Fidelity Investments as his broker,

and does not believe that any trader or investor can earn 40%, 60% or

even 100%.on any stock in the Philippines.

Charlesworth said mutual funds in the US and the Philippines

are mostly “underperforming” with returns of only 8% to 12% and cannot

reached the figure claimed by Goldelyonn.

“ I just think that’s outrageous and deceiving and won’t convince me

unless those guys show me a well-audited rundown on all those figures

shown by that Filipino website,”

Another US trader, Kenneth Carrigan based in Wall Street, New York

said he also saw the figures presented by Goldelyonn Growth Fund and agreed that a “good audit will prove whether or not the claim is true or not”

Carrigan, who is married to a Filipina, admitted however the global economic recovery which started around June 2009, was more pronounced in Asia than in the US

whose economy collapsed under the weight of the financial meltdown on Wall

Street.

“Although I’m taking this with a grain of salt, I can’t ignore that Asian

countries like Indonesia. Malaysia and the Philippines were some of the world’s

best performing stock markets,” Carrigan told Philpress News.

.

—— PHILPRESS NEWS

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