Posted by: joetradingplace | May 19, 2012

Trading Course v Self Training

I have noticed a lot of expensive courses popping up every single day. Be careful there are a lot of unsuccessful traders who are trying to make money from selling useless courses. Some are even charging as much as £10K, that’s a ridiculous amount of money to pay for a useless course or trading system. The best thing to do with your £10K is to deposit 50 percent of it in a trading account and trade very small size, as small as £0.01 per point.

If you stick to the small size, with an average stop loss of 50 points…that will take you 10,000 trades to lose your money, rather than lose it all in a two-day useless course. The experience you will get from trading real cash is worth it. I have noticed that a lot of courses just teach theory which usually don’t work in real trading. The process of teaching yourself can take a long time, but at the end you will have acquired a skill you will have for the rest of your life…and you can pass it on to your kids.

Remember this is a marathon not a race…I have noticed that those who try to make it a race will not survive for 12 months. They crash and burn so quick and they quit, not to be seen again in the world of trading. Mentors/tutors always say ” I will teach you to trade in a day, with my strategy you can just check the charts for 5 minutes a day, then you make thousand of pips a week and relax on the beach. ” And they show pictures of themselves on the beach with a laptop…anywhere laptops and sand don’t get along. Dont listen to the hype from tutors/mentors, that’s their marketing strategy, that’s how they make a living and that’s how they attract new business.

You have to be very realistic about your trading goals, don’t expect to just come in the world of trading and start to make a living straight away…that’s what the mentors/tutors say, that’s all lies. If it was that easy, everyone will be doing it and making a lot of money.

A lot of people always ask if its possible to trade for a living and the answer is YES…but its not easy, the process to get to that level might take a couple of years depending on individuals. Some people are lucky to find very good traders who show them the ropes, that can shorten their learning process. But don’t expect to start to make a living from a very small account…unless you are a very good trader. Make sure you have enough capital to trade and to live on before you even take the decision to be a full time trader. Dont rush to quit your job before you start making money in trading…otherwise you will regret it and jobs are hard to come by now. You don’t want to be in a situation where don’t have a job and you can’t make money from trading.

Start by producing some decent profits whilst you are at your job…then you have a valid reason to quit your job. Trading fulltime is a hard way to make an easy living. If you quit your job before you start making some good profits in the market, you will join the snake oils and start selling useless courses, robots and charging people for Skype rooms etc. There are a very few traders who are making money from trading their own accounts, don’t listen to the noise on twitter, Skype rooms and forums.

I think the word mentor is misused…the dictionary says mentor means a wise and trusted counselor. A mentor is a guide who can help the mentee to find the right direction and who can help them to develop solutions to career issues. Mentors rely upon having had similar experiences to gain an empathy with the mentee and an understanding of their issues. I have noticed people who have been trading for 1-2 years call themselves mentors…these guys are still learning but already they want to teach other people, that’s the blind leading the blind.

I am not saying that all mentors/tutors are rubbish, there are some good ones out there who trade for a living. But the industry is being tarnished by snake oils who give a bad name to good mentors/tutors. So as a new trader you have to separate the wheat from the chaff.

I know we all trade because we want to make money, but don’t let that be the only focus on trading. You must have a passion for the markets, you must love what you do. Passion can not be taught, that’s something which is within you. I am very passionate about the markets, I love trading and looking at patterns, I enjoy talking about the markets…I dont just do it for the money…to me, money is just a by-product of trading well. If you love and enjoy what you do, you will never work a day in your life.

So to conclude this post, DONT EVER EVER pay for useless courses.

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