by Gavin M.
Before you start reading, I do not want to come off as hypocritical so I will have full disclosure. I am the co-founder of Equity Sense - a market advisory and training company. So we do on occasion take in students for training. On average we get 5 a year. Why so little? Because if you have been following me on Twitter and the crazy things I do, I spend 90% of my time trading and tweeting. Whatever little time I have left I spend with my family (much to my wife's anger).
So let's move on from that. There are a lot of trading schools out there - from SMB to Amplify trading to other lesser known entities. You can also check out Hogwarts and pray to the magic gods that you will luck out and make money. You never know. But, with the BTFD mania so prevalent in this market, the common trader has failed to see the value in actually learning from an experienced trader. I am referring to someone who actually is a seasoned trader who can guide a newbie.
Most new traders run away from mentors because of the high upfront costs. At the last check, SMB Capital charges as much as $7,000. So they would rather keep whatever funds they have and try to read books, blogs and other free resources online. There are only two paths to being a profitable trader: learn via trial and error OR learn formally through a mentor. Both have their own caveats. The former will cost you MORE money in the long run because you are really gambling to find a system that works for you. The latter will cost you money in the beginning but you are guided to not make common mistakes.
Then, most traders would decide to follow the subscription services available out there. There are a ton of them. There are ones that have option flow. There are others that do much more. In the end, finding what works for you is like going to a mall and finding that right shirt from J Crew. I went through the education route and I found that from the people we have taught, they fare better in the markets than those who have had to learn by trial and error.
I will leave you with what one of my managers told me before: "If you love something so much, then the cost to be good at it shouldn't matter."
Happy Easter! :)
Traders from Equity Sense will be writing on this blog on positions and other market-related things.