by Gavin M
Trading is difficult enough. You have to manage your emotional and mental states while trying to ensure that your hard-earned money actually yields something worthwhile. This is why you must find a way to really find peace in what you are doing. It's easier said than done, I know.
Emotions run high as you put money into the market. The market itself already is cheating. This has already been proven by a lot of people out there. So let's explore some key factors that pose as significant challenges to your success as a trader.
Externally, your main opponent is the incessant noise from market 'experts'. Sadly, a lot of big funds listen to these experts and they position accordingly. This further distorts the market. You must find a way to quiet the noise and find your sweet spot as they say.
Internally, your main enemy is yourself. You are greedy, optimistic and scared all at the same time. How do you manage your emotions? How do you cope with a losing trade? We all have losing trades. We think the market goes a certain way, we position accordingly and then it does not. We end up with a loss, small or big and we punish ourselves further.
We all grapple with these issues. Those of us who trade this ridiculously manipulated market daily know the emotions all too well. The stress can be managed but only if you accept reality as it is. In the end, your success largely depends on how you manage your perception of the markets and trading in general.
by Gavin M.
It is a question I get almost every week - why do you charge such atrocious fees to teach someone how to trade? The question has way too many answers but I will do my best to give you the best reasons.
Let's begin with my personality. I am a million personalities in one. I can't stand still and I definitely am very impatient. Impatience is not a trait of a great mentor. We already know this. When one decides to mentor another, you have to have the patience to build that pupil's confidence and keep catching them when they fall. This takes TIME. Time is MONEY. Each time I spend with a student is time I spend AWAY from the markets. Because of this, I need to be compensated for my time.
We then move on to dealing with the personality of your student. You aren't really sure if they are cut out for trading until you take them out for a test drive in the markets. It's kind of a lot like a job interview. You feel good about their answers and then when you actually see their job performance, you suddenly think you hired the wrong person. There isn't a series of questions you can ask in the beginning to filter the good from the bad.
Lastly, the deconstruction process takes time. Deconstructing a person's perception of trading is the single hardest things to do. Most people who come to us wanting to learn have their own beliefs in the markets that we have to reshape. Habits have to be removed. Ideas have to be modified and this whole thing takes time.
You can already see that at the core of any training is TIME. People need time to remove old beliefs, open their minds and be ready to accept new ideas. As an active trader, any time I spend away from the markets is lost income for me. With the income I generate as a daytrader far superior than that of mentorship, I have to be sure that any student who wants to learn from me is making it worth my while.
You may read this and think I'm such a big condescending a-hole. Perhaps I am. But you have to see things from my perspective. I am a super active trader who, if at all possible, do not want to take time away from the markets to teach some person how to trade. This is why I charge that much. I cannot do what Mike or Corey does - being super patient with the students they have and getting paid so less.
I always see things through a financial cost-benefit perspective. Averaging $20,000 a day trading and charging $30,000 or $50,000 to teach someone how to trade for a month, look at the missed opportunity I will have. Making $400,000 a month from trading and giving up some of those gains to get paid $50,000 is really not a great investment.
Put it this way - charging $7,000 to train someone for a month when I make $20,000 a day, this whole idea now sounds funny isn't it? So the next time you look through our rates and think they look so expensive, think about what that trader is giving up in order to actually share with you his or her market knowledge. That trader is giving up precious time and opportunities to trade so that you can at least get to a level of profitability.
We are not in the business of gouging people. We definitely have taken in far fewer students than we normally did in the past few years. We are shifting to crash courses because we simply do not have the time to spend one or two months with students and make them into the traders they want to be.
I will always believe what my mentor said a long, long time ago: If you want something bad enough, you don't make excuses - you just go and do whatever it takes to get it.
Traders from Equity Sense will be writing on this blog on positions and other market-related things.