There are plenty of reasons that traders stumble, fail, and are washed out of the market. However, there is one factor that accounts for over 80% of this—a lack of trading education. As the founder and CEO of Cyber Trading University, you may believe that I am exaggerating the importance of this issue or biased towards the impact that a trading education has on a trader’s overall performance. The truth is that a lack of trading education nearly caused my own financial ruin and I hope that by reading this, you can avoid the shame and financial pain that I experienced.
I began my career as a stock broker, and was very good at my job. At the same time, my sister Tina was also working as a stock broker. The two of us constantly saw traders who made a lot of money in the market, and believed that we could do the same. After all, how hard could trading be?
The two of us started dabbling in trading.
I entered the market without a game plan, methodology, or system. In fact, I didn’t even have a style. I simply bought stocks that I believed were due to go up, based upon my knowledge of the individual company.
Like all gamblers, sometimes I was lucky. Every winning trade fed my arrogance and belief that anyone with some market expertise could successfully trade. Most days, I lost money. I blamed these losses on the market because I was too young and cocky to admit that these losses were my own fault.
My sister, on the other hand, was smart enough to realize that she needed someone to teach her how to be a successful trader. So, she invested time and money into trading courses taught by professionals. I laughed at my sister for “wasting money” on trading courses and her “esoteric” approach to trading. However, my sister quickly became a very skilled and profitable trader. Every night at the dinner table, my sister would ask me how much money I had made in the market. As her stubborn little brother, I never let her know about how much money I was losing. She would grill my performance, asking me about pivot points and market makers. Tina was trying to make me understand that I needed some kind of trading guidance.
I wouldn’t listen. But money is a funny thing. Once you lose enough of it, it catches your attention. After nearly wiping out my entire savings, it finally caught mine!
So, I pushed away the remainder of my pride, and I decided to follow in the footsteps of my older sister. I signed up for a couple of trading courses (I didn’t tell Tina! I didn’t want to admit that she was right!).
On the first day of class, I realized what a mistake I had made by trying to jump into trading without truly understanding it. I had some excellent instructors. They taught me the basics of successful trading, including proper money management, as well as a variety of effective trading techniques.
Within two years of this education, I made enough money trading to semi-retire at the age of 24. My incredible financial success was partially due to the fact that I was lucky enough to be at the forefront of a new wave of trading and technology, enabling me to make a considerable amount of money within a short timeframe. However, without trading courses, I would never have understood enough about trading or the market to thrive, much less profit!
The moral of this story is that by investing in a quality trading education, you’ll give yourself a much better chance of being in the 20% group that succeeds in the market. My trading courses changed my entire life and saved me from financial ruin!
Incidentally, my sister is still trading successfully. And, yes, she’s still smarter than me.