There are many options when it comes to trading courses. The problem is finding one that will teach how to consistently make money.
“Give a man a fish; you feed him for a day. Teach a man to fish; you feed him for a lifetime.” – Proverb
Do Trading Courses Teach You Anything?
Most trading courses don’t want to teach the investor anything. The main theme behind the course is to get you to buy into their special trading secret. Once you have bought into their methodology then you can subscribe to their service. This is not always a bad deal if you can answer the following question. Do you understand their methodology and does it fit your trading psychology? If not, the only one that will end up making money is the person/company selling you their services.
You can’t blame the people behind the stock market trading course for doing this. The demand from the investor is to find a Holy Grail system where they don’t have to do any work. Herein lies the opportunity for investors that want to learn the art of trading. To find a trading course that is worth your time you need to make sure they are focused on teaching you the basic tenets of trading. Otherwise, you are just wasting your time and money.
Three Things Most Stock Market Trading Courses Won’t Teach You:
Trading Objectives – Create a Reason: Do you want to consistently make money year in and year out? Are you learning to trade to replace another income or achieve a landmark goal? Before you can do this you must decide what motivates you. Any successful, trader, business person, or entrepreneur will attest to this statement. In any endeavor, you will go through a time when things are not working out the way you envisioned. What do you do? Do you quit or do you dig deep and keep going? It is important to have a driving motivation to continue trading.
Trading Psychology – Who are you: What type of trading fits you as a trader? What are your strengths and weaknesses? So what, why does this matter? It depends, do you want to make money long-term and learn to trade full time. Or do you want to just try to trade and end up losing all of your money? It is up to you on what you want to accomplish. If you are not serious about learning to trade, GO TO LAS VEGAS you will have a lot more fun and end up with the same results, no money.
Position Sizing -Risk Managment
How much should I buy? How much should I risk on each trade? If you don’t already know each of these questions is different. You could buy a $20,000 position and only risk $1000 on the trade. It is all how you create your position sizing model. Do you want to be a profitable trader 5 years from now? Then you must learn this part of trading. People get lucky and make money on one, two, or several trades only to lose it all on a bad trade. Most traders don’t make it in their first year because they don’t understand or follow a solid position sizing model.
Creating a Profitable System:
If you really are interested in becoming a successful trader you need to spend time on all three of these parts of trading. Without mastering these parts of trading you can actually turn a great trading system into an unprofitable system. Creating a profitable trading system is actually pretty easy. That is why it is so easy for trading courses to peddle their system. This does not mean the systems they are selling are bad it just means it may not be the right fit for you. There is not any system that will always make money.
If you first take time to:
1. Create your reason
2. Find a fit
3. Build a great position sizing model
You will be able to create or find the right systems.
The problem is most stock market trading courses don’t want to spend the time to help you with these three areas. So if you don’t want to waste your time or money be sure and check any trading course and make sure they are covering these three basics of trading.