People are not born with any innate knowledge how to handle money. You can teach a child from birth to the age of 45 to save and invest money. Yet, the end result can be a fiscally irresponsible waif $30,000 in debt. The notion that saving and investing is just not always that easy to comprehend. Now, if understanding fiscal basics is difficult to comprehend imagine how difficult it is to learn the complexities involved with day trading.
Everyone’s a Trader
Just as anyone can spend their money, anyone can day trade. If you have enough money to purchase a stock you can buy it. If you own a stock it is well within your rights to sell it as you see fit. But what are you seeing? If you are aimlessly day trading from an uneducated perspective then you may find yourself in complete financial ruin.
This is why it is critical to have a solid trading coach. Such an individual will provide the knowledge necessary to make the right decisions in a manner no different than a personal fitness trainer would help one with nutritional choices.
Learning to Trade
A basic learning program should consist of solid introductory material that provides the basic foundation for becoming a trader. This includes an introduction to what the market is and how it operates as well as the multitude of technical terms associated with day trading. (Lack familiarity with the various terms will make trading confusing to navigate)
Of course, it should also clearly define what a trade is and provide clear examples of the difference between a good trade and a bad one. Explaining the risk reward paradigm is critical as well. That is, trading involves risks and no guarantees but it provides the potential for huge windfall profits.
A major learning component of a trading course is paper trading. Paper trading is essentially a simulation of actual trading. That is, students “pretend” to make a trade and not actually commit any money. This way, the students can examine their mistakes when trading and revise their performance until their proficiency for success increases. In the past this method was actually done with pen and paper. These days there are a number of software programs and virtual trading websites that can perform simulation duties quite effectively.
Benefits of a Trading Coach
These are only a few of the solid benefits that a trading coach offers. Consider the following additional merits:
- A solid coach can point out areas that would otherwise escape the student. If a coach has decades of experience in a particular field then he will possess significant insight on the subject. This will allow them to point out various aspects that might otherwise not be thought of by the student. This is a critical point because one’s skills in day trading will only be limited by knowledge. By having access to an individual who can provide different perspectives on the subject the ability to expand one’s learning ability is greatly enhanced.
- A trading coach can provide one with specific strategies with clear goals. This is inherently tied in with the ability to understand different methodologies of trading depending upon what particular stocks are being traded. By providing a knowledge base in a particular area one can develop the appropriate strategy. Once this is achieved then the ability to focus is arrived. With focus success becomes much more attainable.
- A day trading coach can also provide oversight of established plans that have succeeded in the past. Day trading coaches do not wallow in speculative theory. They stick with the basics and concentrate on what works. Remember, they are coaching for success.
- Coaches can also provide the right mental attitude for embarking on day trading. Day trading is a tough business that has its ups and downs. The need for shaping the right mental strategy for success is just as important as any actual plan. If you crack under pressure you will never make a solid day trader.
Course Structure and Cost
In terms of the actual courses, trading coaches can offer private and group lessons. Private lessons have the huge benefit of one on one attention. This allows the student to learn at his or her own pace. Group classes have a tendency to be more lecture/Q&A oriented. The benefit of a group class is that the collective environment may lead the course into areas that might not be thought of in a private class.
The pricing on a trading program will vary depending upon who is teaching the course, how the course is taught, the duration of the course and many other factors. A famous trading coach might charge several hundred dollars an hour for a private lesson and several thousand dollars for a group class. A less well known instructor might charge $50 – $100 an hour or a few hundred dollars for a group class. Again, the prices vary so you really need to look at each program individually for pricing information.
Finding a Trading Coach
But how do you find such a course? There are a number of ways to find a good trading program and looking at the website promoting the program isn’t one of them! After all, how many trading programs will say “We’re the third best!” For more accurate information it is best to frequent review websites, skim message boards/forums, peruse business magazines and ask those who have experience with trading courses. Basically, a little due diligence is necessary for finding a good trading program.
It is also important to avoid those trading programs that are just too good to be true. Usually, these programs identify themselves through promising things that they can not possibly deliver. For example, any trading program that claims it can guarantee a 100% return on an investment is making a purely hyperbolic claim. The same can be said of those programs that claim to guarantee a fast profit. There are far too many variables associated with day trading to predict timeframes and outcomes with 100% certainly.
Honestly, anyone who had the insight to do this would be a billionaire and not teaching a day trading program. Instead, gravitate towards those programs that provide a detailed and clear path to understanding the basics of day trading. (Preferably ones that have been in the business a while) These are legitimate trading programs as opposed to make money fast scams. Don’t fall into the trap of being connived by such a false prophet. Stick with established coaches who have a solid verifiable background.
Ultimately, the goal of any day trading venture is to be successful. Hiring a coach increases the odds for success. No, there is no coach that can guarantee success and anyone who does make such a claim is not being honest. However, by providing the skills needed to lay the foundation for success. This is obviously a beneficial situation to find oneself.