Trading Blasphemy

Posted on May 26 2016 - 11:56am by Sharpe Trade

I peruse the ol’ interwebs.

It seems in the space of ‘online trading educators’ the popular pitch is something along the lines of …

Make millions, because trading is easy.  We will appeal to your desire to make millions by luring you into the trap of apophenia as we show you a ‘secret’ that no one else is aware of!  We will then show you this ‘secret’ method on a million different ‘technical charts’ where the ‘magic entrance’ ‘would have worked’ in the past.  In three months time, you will be able to quit the 9 to 5 job that you hate with a passion.  You’ll buy a mansion.  You’ll buy a 991 Porsche Turbo S.  With squiggly lines on a chart in four months time, you’ll know more than the “idiots” on popular financial networks, and you will have the authority to speak ill of them.  With the aforementioned ‘squiggly lines on a chart’, you will then be qualified to speak about non-linear economic modeling.  And finally at the end of it, you won’t have to do anything.  You’ll be able to just lay around … and do nothing and have all the money you could possibly dream of …  

Permit me if you will … to commit “trading educator blasphemy“.  To simply tell you a secret that is really not so ‘secret’.   A ‘secret’ that you have no doubt already discovered.  But allow me to say it ‘out-loud’, so to speak.  Call it ‘trader blasphemy’.  Or quite simply … hard truth.


True, professional traders who have developed the skill of trading, make some of the best money in the world.  But trading is work.  And most people who start out, won’t make it as traders.  Because they think trading is ‘easy’ but for humans, trading is actually very difficult.  This is borne out by the fact that most new, at-home retail traders become discouraged and wash out within a year.  

There is no ‘secret method’.  There are myriads of ways to make money in the markets, and not all of them include a chart loaded with technical indicators.  It takes time to develop the skill of trading.  You will not quit your 9 to 5 job in three months, six months, or even nine.  If you wish to trade an account, in the beginning you will have to live simply and have an alternate source of income.  You will have to endure painful moments, stick to your process and grind it out; because even excellent trading processes have periods of drawdown.  You will not make money every day.  You will not make money every week.  You will not make money every month.  You may not even make money every year.  As we have demonstrated, no professional trader in the world makes money every day, or every month.  Warren Buffett’s Berkshire.A lost almost 13% in 2015, but over the course of time he has etched out one of the best track records in existence.  You’ll need at least five years of profitable trading before you’ll even feel like you are qualified to offer an opinion with veterans who have been grinding it out for decades.  Much of short-term trading has nothing to do with macro-economics.  You’ll have to keep good records.  You’ll never be comfortable with your trading positions.

So there it is.  Our ‘not-so secret, trading blasphemy’.  

If, and only if an individual can accept the above ‘hard truth’?  And if such an individual truly loves the markets and trading?  Well … they might have a shot at making it. 

For those who want to trade because … ‘they don’t want to ‘do’ anything‘?  We’ll simply say …

Get lost.  We’re not the site for you.

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