Tales of a Technician: Can I Be Successful at Trading? | Tackle Trading
Inspired answers are born from inspired questions. I know I received the latter in my inbox just last week. Today’s tale is my attempt at creating the former. One of the all-star students from my recent Options I class asked whether or not I thought she could be a successful trader given that she only had access to a couple of our elite trainings. Her concern was that she hadn’t yet invested in a mentorship or trading labs (or, really, any other class for that matter). And with those holes in her training — if we can even consider them holes — she wanted to make sure she had realistic expectations.
My short answer was a resounding YES! OF COURSE, YOU CAN BE SUCCESSFUL AT TRADING! Today’s post is the long answer.
Let’s start by laying out a few principles I believe to be true.
First, consistent success at any craft is a byproduct of knowledge. In general, the more knowledge (education, training, whatever you want to call it) you possess, the greater your likelihood of success. At least that’s what common sense tells us. This is what motivates us to keep learning. And, I suspect, this is what makes this student question whether she has enough education to be successful.
Second, knowledge doesn’t always equate to success. Particularly with an emotional activity like trading. Let’s compare two traders. The first possesses discipline in spades and nerves of steel but has only attended the Master Trader course. The second has participated in ten different mentorships along with every trading course known to man. But he’s a basket case and can’t follow a plan to save his life. Who do you think is going to be more successful?
Third, the definition of “success” is different for everyone. Remember, there are a million and one different ways to use the financial markets to your benefit. The objective of any of our educational offerings is simply to elevate your understanding. To empower you to make more effective, and hopefully, more profitable decisions. Maybe the application of this knowledge is simply that you passively invest using ETFs instead of mutual funds for the rest of your life thereby saving thousands of dollars — maybe even tens of thousands of dollars — in fees over your lifetime. Maybe it means you slowly accumulate assets like stocks and commodities for covered call selling. Maybe it means you’re able to generate better risk-adjusted returns by using naked puts instead of buying stock.
I don’t know what success looks like for you. Or, what the key takeaway is from any of the classes you’ve attended. But here’s something I do know. Traders who attend a class like Master Trader or Options I and then try their hand at short-term trading for a few months and don’t make any money — and then quit having resolved that trading or investing “doesn’t work” — have completely missed the boat. And, honestly, it’s kind of sad. Sure, I’d love for everyone to kill it with short-term trading after taking one class. But there’s more to investing than that. Who cares if it takes you a year to figure out how to make the financial markets work for you? How long are you planning on living?
Do you really want to be relegated to putting your money in a savings account for the rest of your life?
If you have to start small, then start small. If you have to start slow, then start slow. If the first few strategies you try don’t work out, then keep going. There are people far less intelligent (and far less good looking) than you that have figured out how to use the financial markets to their benefit.
It can be done. It has been done. And it will continue to be done by those who have the drive to do it.
Financial freedom is a journey
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Originally published at tackletrading.com on March 29, 2017.
