9/17/2010 Update

9/17/2010

Being told what you want to hear is something that in trading can be devastating to your success meaning; most people rather be sold on the fact that trading is easy then be told the truth because the truth is something that most people just don’t want to hear.

Over the years we have came to the realization that people will pay more for something that does not work if it looks easier to use. This is where companies make arrows on the chart and it looks so easy like anyone can do it. The truth is most of those system re-plot the arrows and those system have no way of knowing if the trade is counter trend or not.

Let’s look at a few reasons why most of the “can’t lose” systems actually fail:

1. The market is never in the same condition so one day the system might work and the other days it will not. Not only will it not work you will most likely lose much more than you make when it wins.

2. You must take every trade no matter what and this is unrealistic for most people. (human emotions are too strong like it or not)

3. Most of the systems do not take into consideration the range of the market so when the range is small it will still have signals and actually overtrade and you will have more losses.

4. They do not take into consideration the bigger pattern which will give you support and resistance meaning; it will still say go long right at the top of the 3 minute pattern at the bigger resistance.

The other thing that most people that want to trade is that they might think to themselves that they will start learning when they start trading. This is not a good approach on so many levels but the main thing is that trading takes time to learn and starting to learn and trade for monthly income at the same time will put too much pressure on you to make it work. The best thing is to start learning now no matter when you think you will have the time or money to really start to trade full or even part time. We have found the people who do the best are the people who take it slow and actually master each step before putting the pressure to make money tomorrow. I don’t know about you but I want to make money for the long run with my trading not just make a few points next week.

The point of this article is that we understand there are many companies selling the dream of trading and yes it is a great career to have but that does not mean it is easy. You do not have to be college educated or even be all that smart to learn how to trade and make money. What you need is the education and then after you learn the education you apply tools to give you odds.

You do not need to learn every Wall Street word or live in a big city to be a successful trader. All of those things are hype they mean nothing when it comes to you and you’re trading. It is not who you know or how much money you have, it is you understanding when and where to buy and sell.

Instead of searching for something that will give you a 1 point stop maybe it is time to learn how to see a 10 or 20 point move coming. Maybe it is the approach or mindset you might have that is really holding you back. Why search for something with a 1 point stop to make 1 point, isn’t that limiting your overall market knowledge and the actual opportunity?

If you learn how to see a 20 or even a 100 point move coming wouldn’t that help you in trading for the smaller 2-4 point moves? Yes it would give you the confidence that you would only take the trades in the bigger trend direction. Is it harder to learn how to see a 20 point move over a 4 point move? No! Even though it is a bigger move it is the same exact thing just looking at the bigger pattern.

Trading is not a hobby it is a job even if you are just in the learning stage. Even though it is easy to get consumed with the market and try to master every aspect of trading it is not necessary. In our experience if most people put in the same amount of time to really learn the markets rather than searching for the magic system you would probably be most of the way there.

It is time to get the education and answers so you can get to the next level. It does not matter if you are actively trading right now or not. If you feel as though you want to be a trader at some point in your life it is time to get involved and join a team that does daily education so when you are ready to trade you have the knowledge and the tools to make it happen!

Happy Trading,

www.eMiniSchool.com