June 2, 2008
Stock Trading
Trading is a tough game - and by trading I mean short term trading or day trading the stock market. Don't let anything tell you different. Sure there are the idiots on late night TV and radio promoting their "system". Without even looking or hearing it, I can almost assure you 100% its junk. 100% JUNK. I said it twice. Most people hawking a system or method on TV or radio have never even traded the market. I am serious. They are salesmen, but are good at what they do. They most likely bought the rights to someone else's method OR just figured some crap out and packaged it with fancy marketing.
If you notice, all these offers, they never, ever give proof of how much the AUTHOR/PROMOTER made in a real account, that was audited by a real accounting firm. They always have testimonials and the like because that limits the liability. The promoter is not telling you its good, some average Joe is. And in small print, they have the disclaimer that states "Results achieved are not what the average subscriber is able to achieve" or similar. You get the picture. Its Diet Pills for the stock market all over again. Same message, different words.
Now I am not saying that everyone that tries to sell a book, seminar, or method is a scam artist. All I am saying is look for references of EXACTLY how they are qualified. The real people will offer proof, and be quoted by independent resources as an expert or similar type moniker. There will also be stock trading system review available on the web
Now remember, this trading totally different than investing. That is a whole different game where extended analysis pays off, and researching information does pay, assuming others figure it out over time and your thesis is correct. Finding a method to short term trade the market, whether its a trading system found through a stock trading system review, or a set of indicators that helps with timing and selection of ideas, is tough.
Most of all this type of stuff feeds into peoples greed/laziness gene. What is that? Easy - its the get rich quick gene that all of us have buried in our DNA. Somehow most people (myself included at rare times) fall prey to thinking there is some "secret" that will make it super easy to have a Brinks truck roll up to your door with a delivery of money. What is almost 100% of the case - even for the people selling the "method" and assuming they are legitamite, they have worked their ass off for years and years to achieve success. The method they offer might be a slight shortcut and a blueprint, but it never alleviates the need for true, hard work and lots of it.
Trading is no different. Even if someone gives you the keys to success, there really is no guarantee at all. Of all the things to try to do, this is probably one of the hardest other than maybe being a standup comic or an actor. Its one of those things that you either "have" the skill or you don't. Can you tell that right away? No. But it simply comes down to how you assimilate information and follow a game plan and think quickly. Sounds easy but its not. For every 100 people who think they are smart (and probably are), maybe 2 or 3 can be successful in trading. The odd part about trading is the more education you have does not make you better at it. Often times, it is a super detriment. You over analyze, and cannot make a decision. This does not mean it hurts, but its rare to find a M.D or a P.H.D that is a good trader.
So once you start down this path, you will need to be diligent, including looking at stock trading system review, reading books, and generally trying to find buddies who you can share ideas with to improve your chances at being a successful trader.
Filed under Stock Trading by financial_strategy





































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