Regain Your Trust In Trading

trading trust

We live in a very cynical world and it has shortchanged a lot of people when they don’t trust and end up missing out on opportunity.

There are quite a few reasons for cynicism (politics being one of them) and regardless of the reasons, it is an unfortunate trait to have.

In relation to trading, I fully understand why people don’t trust.

If you subscribe to any mailing list, over time you have gotten the promise of riches delivered to your inbox.

More often than not, there is no merit in the claims and is simply a cash grab by people looking to capitalize off your desire for a better life.

On a more compelling note, there was an options trader that was touted as  “Supertrader” who made $41 million in profits over 3 years.

It’s a story that no doubt gave many people hope that they could pull out the modest profits they seek.

Turns out, “Supertrader” was not a fan of full disclosure on how she traded.  Feel free to take a moment to read how skillfully she fooled everyone.


Trading Scams And Lies Can Cost

The fallout from all the trading lies and scams is not only an individuals money but also their hope that trading can be a viable income stream.

People trust and then become disillusioned as the promises never materialize.  Many times people give up hope and give up on their goal of trading for a living.

Understand however that not all promises are based on fiction.  There are some solid trading methods and systems out there and with those, it is the individual that fails to capitalize on the information they have.

Trading systems and methods are only part of what you need to succeed.  Many successful traders will tell you that how you find your trades is the least important part.

But not all traders will tell you that.

Not all marketers will tell you that.

Here at Netpicks for example we fully disclose that you need three variables to have a chance of finding trading success.

  1. Your trading system
  2. Understand and implement proper risk protocols
  3. Get a handle on the parts of your psychology that can dampen your chances

We are straight up with that the fact that even with our trading systems that have helped people reach their trading goals, not everyone will get the results they want.


The person attempting to trade it is not coming from the same “place” as those that have success.  They have failed to master each of the variables and missing one of them will cause the house of cards to fall.


Why Teach When You Can Trade?

This question is very common and I am sure every trading company/mentor has fielded it in one version or the other.

That is a question that comes from people being cynical because all they have seen is people being taken advantage of and people like “Supertrader” being outed.

Let’s take a step back and look at it from a different angle.

If you enjoy working with children and enjoy sports, would you:

  1. Turn down a request to coach a kids softball  team with a time commitment of 3 hours a week?
  2. Agree to coach but ask for compensation?
  3. Coach because you enjoy it, appreciate that the kids want to play a sport, and love seeing how they progress?

If you were a retired professional athlete, had the skill to coach a pro team and were asked, would you:

  1. Do it for free?
  2. Realize you had a coveted skill and want to be compensated?

With trading though, as soon as someone charges for their expertise, they are labelled scam artists.

Let’s take out of the equation those who clearly do it to feed their own ego.  Generally, they don’t offer anything of any value.

I know a few educators and as you can see by my many posts, I like to add to the mix.

So why do it?

  • Enjoy teaching
  • Trading can be extremely boring and enjoy the interaction
  • Repetition breeds familiarity leading to confidence and hopefully greater success

There is also a tangible reason:  money

A fair assessment of trading is that the markets will not always offer opportunities that are conducive to the probabilities of your system.

Another fair assessment is that not all successful traders day trade for income.  They prefer more of a swing/position approach to take advantage of not only leverage, but time as well.  Their capital is tide up in a position and we all have bills to pay.


Try Two Streams Of Income

Robert Allen is an author who wrote a book called Multiple Streams Of Income.  In the economy of today, if you are able to, adding another income stream is smart.  After all, many who take up trading are looking to do just that so why is it suspect if a successful trader wants to do the same?

Trading is an extremely valuable skill, a commodity if you will, which can aid you in having a more comfortable lifestyle where how much you make is all up to you.

It would be ridiculous to think someone, anyone, should just “give” you value for nothing.

What about those who ask “how about I pay you only if I succeed?”  Expecting that type of arrangement ignores a true fact about trading and that is that trading is a meritocracy.

Meritocracy: an elite group of people whose progress is based on ability and talent rather than on class privilege or wealth.

As mentioned earlier, your progress in trading has little to do with systems and more to do with your emotional and psychological make-up.

It is based on your understanding of and following good rules of money management that will allow you to persevere through draw downs.

The truth is hard work is foreign to many and the get rich quick mentality rules many who enter trading.  Most have difficulty sticking to one method of trading and system hoping is the norm.

Those type of people, regardless of the veracity of the trading method, will in all likelihood flame out in the long run

But what about those who are serious about trading and are ready to take a professional approach to their studies?


How To Find A Safe Place To Learn Trading

Even with due diligence, nothing is guaranteed and the place you thought was head and shoulders above the rest may turn out to be a fraud.

But you have to start someplace.

  • How do you get training from a reputable coach or get a profitable trading system?
  • How do you sort through the marketing slogans and scams that litter the internet?
  • Is hype a red flag?

Here are a few pointers:

  1. Look for longevity in the trading education business you are researching.  Although this is not a guarantee, blatant scams are usually short lived on the internet.
  2. Anyone who offers you trading services through a forum is a red flag.  One popular forum had one member named “Jacko” who swindled a lot of money from trusting people thinking he offered something viable.
  3. Do the educators trade?  Sometimes this is tough to ascertain however I have found real traders “talk” differently than pure marketers. There is a slickness to the marketer which you don’t get with the trader.

Where I find myself now is a culmination of years of different influences in my trading.  It is a never ending evolution and I don’t think you will learn all you need to in one place.  It will also be through experimentation and hours of chart time.

Also understand that with knowledge, especially in trading, the law of diminishing returns comes into play.  

There is nothing as disheartening and frustrating than to fall into the trap of analysis paralysis.  Sometimes what you know can hurt you.

Don’t be put off by someone wanting compensation to teach you a skill that can last a lifetime.  Due diligence and gut feel is what you must depend on to ensure the information you are receiving is worth the cost.

I personally had a mentor starting out and it was Netpicks that hammered home the consistency and trading plan aspects that are required for success.

While I may have lost a few dollars on worthless “education”, it is all part of the journey.  There is never a better teacher than experience.

Author: CoachShane
Shane his trading journey in 2005, became a Netpicks customer in 2008 needing structure in his trading approach. His focus is on the technical side of trading filtering in a macro overview and credits a handful of traders that have heavily influenced his relaxed approach to trading. Shane started day trading Forex but has since transitioned to a swing/position focus in most markets including commodities and futures. This has allowed less time in front of the computer without an adverse affect on returns.