Why you should not buy any Stocks/Forex/Crypto trading courses?
I have been interested in Forex, Stocks (and later on Crypto) dray trading for more than 5 years. Most of the time I was thinking, that it is possible do make a living by doing that. Guess what — it is not (well, extremely low chance, that you will make it — exists, but I will write another story about that).
I think now it is quite easy to think that way — because all over social media you can see pictures and stories of successful day traders, who spend some time during the day in front of the screen (for more advanced — iPhone is enough), but most of the time — traveling, partying, shopping (you name it). Who would not like to live like that?
If you will look closer — you will notice one interesting fact among all those successful traders. Almost all of them are offering a course (for which you will have to pay of course) — after which you will be able to live exactly like they do. Some time ago I though that such courses could help me get required skills and become a successful day trader. I have tried and bought some courses, and surprise surprise — nothing magic happened. Yes, I got some knowledge about Stocks and Forex trading (that was a bit some time before whole crypto mania started), but that was not event close, what is needed in order to become a successful trader. I will list reasons with explanation about that below.
- First of all — let’s discuss: Why those day traders are selling courses? It is quite easy — they want/need money (who does not, you might ask, and what is wrong with it?). And they offer courses, because they can not earn enough money when trading. Just imagine: you know some secret way how to earn a lot of money — would you waste your time, explaining other people how to earn money like you do? Most likely not.
- What you will lear in those courses? Most likely you will be taught how to use so called technical analysis (patterns in price chart). This is because it is quite easy and quick to “teach”. But problem is, that technical analysis does not work. It is way harder to teach about other things, like: economics, financial markets, mathematics, politic situation and psychology (yes, this is also very important). And also — it would be much harder to sell a course, when buyer would understand how much knowledge is needed, if you want to earn money from day trading.
- Why TA (technical analysis does not work)? Like I mentioned before — first of all, if it would work, then all trades would be made by robots. But financial markets are like any other business environment. It constantly changes, so if you want to survive there -you need to adapt. So looking to a chart in price history from a past will not give you any advantage.I will write another article about this, so if you are interested — stay tuned.
- Courses are too short. Most of them are few weeks (some — maybe about month) long. It is possible to make a living from trading, but it is simply not possible to get any skill, which could provide you a living so quick.
- Later on you (most likely) will be asked for more money. Simple business logic — it is much easier to get more money from existing customer, than from a new one. So when “teachers” have sold you a course, after some time you will receive offer to get “advanced” course (for more money), or even an offer to manage your portfolio by successful trader.
- All information, which you will get in the courses, you can find in the internet for free. You can just use google, and in less than 10 minutes you will have plenty of sources, where you can read about trading and not pay any money for that. That might save you a lot of money later.
Hope you enjoyed this article and found it useful. I am planning to write other articles about:
- What is wrong with technical analysis and why it does not work?
- How trading course sellers earn money from you (there are much more ways to earn money, selling a course is only first step).
- Why only small number of day traders are successful?
So follow if you are interested!