My Complete Forbes Article: What have you found to be the-greatest hurdle in training traders to be consistently profitable?
Can Individual Traders Succeed In Financial Markets?
Success in trading financial markets is uncommon, but achievable. Here is what top educators are doing to improve the odds of consistent profitability.
1) What have you found to be the greatest hurdle in training traders to be consistently profitable?
The greatest hurdle in training others to be consistently profitable is THEMSELVES! In my opinion, the best traders are not necessarily the smartest people. The best traders are the most DISCIPLINED people! I can teach a person all the mechanics and strategies of trading, but can that person have the PATIENCE and DISCIPLINE to wait for that strategy to evolve before making that trade!
In life as well as trading, almost all of your losses can be attributed to one or a combination of the 7 deadly sins: Lust, Gluttony, Greed, Sloth, Wrath, Envy, Pride. I can write an entire book based on this topic on how these deadly sins affect your trading. However, I will quickly summarize a few of them:
- FOMO : (F)ear (O)f (M)issing (O)ut
Having FOMO is where you chase a stock outside of your desired strategy parameters. As a result, you enter a trade way too early or way too late. This is caused by greed, envy, lust along with pride of not wanting to miss out.
- Revenge Trade
Revenge trading occurs when you have lost on a trade, and so the next trade you go larger in the hopes of making it all back. This act is caused by wrath as you are angry that you lost and have the lust to make it all back quickly.
- Make Up Trade
The make up trade is very similar to the Revenge Trade except that the trader missed the last play that went big so they try to “Make Up” that trade by going unusually larger the next trade. This act is caused by wrath as well as envy and greed.
- Disobeying your Stop Loss Plan & constantly adding to a loser
Not cutting your losses and letting a manageable loss balloon into a giant loss is the result of pride. The trader feels he is too proud to take a loss. Also wrath comes when he gets angry that the trade is not going his way so he keeps adding in the hopes of breaking even on the trade to save his pride as well as his bankroll.
- Being complacent and lazy
In trading I always tell myself and my students “Complacency is death”. The stock market is an ever evolving complex ecosystem. As such, a trader needs to constantly be learning on a daily basis to try to be a few steps of their competition, or at the very least stay current. I have seen many traders who when become successful, get complacent and lazy and so they let their competition caught up to the point where their strategies and edge become invalid. These are the sloths of the trading world.
Learning the mechanics and then forming a winning strategy alone are two daunting endeavors that may take someone a lifetime to develop. Now throw in the human element (mental/psychological) during a trade and you can see how it is very difficult to be able to be DISCIPLINED and FOCUSED at all times! Here at MyInvestingClub.com we can teach a trader the mechanics & provide them with winning strategies, but can they master their own mental state and stay disciplined! That in my opinion is the biggest hurdle a trader goes through in order to become consistently profitable. A trader can be profitable 30 straight days, but don’t let that next day where he finally loses to wipe out 10, 20, 30 days worth of profits, or his entire bankroll!
2) What has been a unique, effective best practice you’ve used to help traders improve their performance?
I have been trading for 2 decades (1 decade full time) when the stock market was still quoting in fractions! Someone that has been in the industry for so long can often forget what it is like to be a beginner. As such, their students may not be able to relate to them. I have mentored many to become consistently profitable, even to become multi-millionaires. In fact, one guy (who’s now a friend) whom I met online and mentored, went on to make over $1 Million in a single trading day! I also have helped others who have went on to start their own highly successful day trading chat services. I joke and say that “I am your mentor’s mentor”. But why I bring this up is because the common theme is become relatable to whomever you are trying to help!
When I teach someone, I don’t simply lecture; I am there trading along with the students! The students see my trades: they see me make mistakes, they see me lose, they see me learn from my mistakes, and of course they see me win, profit, and how I handle the win and not become arrogant. My students can relate to all these experiences along with me because I am also a student! I am human so I make mistakes daily. I break discipline daily. Students see that even a top trader/mentor can sometimes make the same mistakes as them.
So the best teaching tool is you as the mentor/teacher making trades, and learning from your own trades and then discussing them with your students! This makes you 100% relatable and HUMAN! And that trust motivates the students to want to keep learning because I always say: “Every Expert was once a Beginner. Every Pro was once an Amateur. So dream big and start now!”
Here at MyInvestingClub.com all the mentors and trainers are traders. We trade every single day. We do not give “signals” or “alerts”. We teach you the proper process and planning for the trade so that you learn to be self sufficient and not rely on copying anyone! We want you to become successful not by copying trades but by understanding the process upon which to draw your own conclusions and place your own trades! This is what I find to be very unique in the industry as most want to pump & dump by “alerting” to their members artificial plays.
Get mentored the correct way because here at MyInvestingClub.com we truly believe that mentorship is the shortcut to success. Mentorship is your fast track to profitability and success! Say NO to the Pump and say YES to learning the proper process!