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The right, effective education can cut years off the learning curve. Learning to trade on your own can be a very time consuming, confusing and even potentially hazardous to your personality and psychological status. Trading professionals who are willing to host seminars, write highly informative books or mentor new traders live, usually have 10 – 30 years of real life trading experience, much like any other profession such as successful doctors or electronic engineers in fast evolving wireless design sometimes host 2 weeks seminars or offer actual certified courses that cost many thousands of dollars, just for 2 weeks training as high as $7000 in fact! But it does enhance the career and productivity of those professionals so as to face competition effectively.
Learning to trade without a mentor is like learning to drive without an instructor!
Trading is as much about psychology and getting rid of misleading emotions as it is about money management and strict rules with numbers. Do you remember the first time you had to drive for passing your driving license? Can you imagine what it would have been like if there was no driving instructor looking over your actions and overriding your wrong decisions and giving you confidence? If that was the case in early driving, these learners would have crashed their cars many times before they learned correct driving. Exactly! Yet in financial trading we experience just that, we think we are know-it-alls and perfectly capable of managing everything on our own, and that after enough ‘trading crashes’ we will have gained what it takes to be successful.
All successful traders had their mentors.
By comparison to other professions and learning processes, financial trading is no different, while I fully respect many book authors and I find their material valuable, is not possible to learn everything and gain the confidence successful traders have by reading books alone. Most serious, young traders spend an estimated $2000 on quality books and seminars, $2000 sounds like an significant amount to the outsider, but these traders are serious, they know they are currently risking a lot of money trading the markets, volatile markets like stocks, the e-mini electronic contract or currency futures contracts.
Most amateur, un-mentored traders trade on wishful thinking and they lose an estimated $5000 account balance in matter of few months, not only they make the initial wrong trade, which is not so bad, after all we all have losing trades, even the best, most profitable traders STILL DO have losing trades, but it’s their naïve and wishful thinking view that the market will turn around… but it rarely does, so they keep answering margin calls one after the other losing as much as $2000 in what should have been a $200 losing trade – part of a winning system shows you how to handle the losers.
Equally on the profitable side, these amateurs who think they are clever ‘saving’ money on seminars and expensive quality books and mentor programs cut their winning trades way too early just because their human emotions get in the way. Mentored learning traders don’t make these mistakes, in fact they recover all the money spent on education within their very first trading month on a $10,000 account!
Trading seminars and mentor programs DO PAY OFF! But are expensive, expensive because a highly qualified instructor has to spend many hours teaching you.
Paul Murphy is a passionate and successful trader. Always in search of the best trading systems, and researching ways to help you be the best trader you can possibly be. Discover how to improve your trading performance with articles and interviews at his blog: www dot trading powerhouse dot com