The rise of the Internet means that most information is only a few clicks away. That’s led to an explosion in online-based education programs. Sectors that have benefited from the information age are stocks, commodities, options, futures, and currencies, where numerous traders are willing to share their secrets to success – at a price, of course.
Unfortunately, there are bad actors out there who will willingly take your money, while offering little in return. According to Investopedia, there are also people who are unethical and dishonest. “Sadly, we can rely on that, but we can learn to spot the evildoers, up to a point,” Investopedia says. “The problem is that new technology and ideas invariably lead to new rackets, scams and forms of mis-selling. We can rely on the vast theoretical body of investment knowledge, but we need to know its limitations. We can figure out what to avoid and what should work. But there is nothing and no one out there who can tell us what will work.”
Separating Good From Bad
Jarratt Davis, a U.K.-based currency trader, teacher and fund manager, admits that the amount of information available online can be somewhat confusing for inexperienced traders, as much of the information is not necessarily helpful. “As a result, some traders become overwhelmed and end their forex careers before they’ve even started,” he says. “Success doesn’t come instantly, it takes practice and patience. I went through a long period of trial and error before I discovered a strategy that worked for me.”
“In short, the first year of trading can be tough,” Davis adds. “It certainly was for me; my experience was full of ups and downs. The breakthrough came when I eventually realised that fundamental analysis was the key to trading successful in the currency markets. I also learnt that this is how the majority of institutional traders navigate the markets and make significant profits. This approach was so successful, that I began to attract the interest of the global investment funds.” Davis is now a London-based institutional fund manager.
Find Your Trading Personality
Matt Choi is a professional trader and best-selling author who also runs Certus Trading, a trading education company aimed at helping investors master technical trading and achieve financial success. Matt tries to help investors find their “trading personality” (his happens to be swing trading) so they don’t get frustrated focusing on styles that don’t suit them. For instance, day trading remains popular, but is only suitable for those who are comfortable staring at screens all day and jumping in and out trades quickly. Choi says it’s important to specialize in a few markets instead of trying everything.
“I thought having a good strategy was all I needed to achieve success,” Matt Choi said in an interview. “In hindsight, I now realize that it takes so much more than strategies and systems.”
Matt Choi says successful entrepreneurs have one thing in common – their business goals, passions and life goals are completely aligned. “I really love the challenge that the markets give me everyday, that’s my passion,” he says. “At the same time, I take trading seriously and treat it as a business. What other business allows for triple-digit return in a few weeks, or in some cases, a few days? Of course, just like in any business, there are reckless traders who take on too much risk and lose their shirts. But if you study the markets and manage risks properly, it becomes a non-issue.”
A Transparent Approach
Jarratt Davis and Matt Choi have one thing in common: they are absolutely upfront when it comes to their teaching methods and the costs involved. But not all trading teachers are so transparent. You have to do your homework. That means wading through the myriad of trading courses available online. It may be a slow process, but in the business of trading, like so many others, there is no such thing as overnight success.
