There are so many nice vendors who have answered questions and helped me for free, and I first of all want to say thanks to those who have. Now, on to my question.
Why in the world would someone offer trading training to others? In any field where the potential for return for one's own self is limited (say, an hourly job), then training makes sense. But in trading the potential is virtually unlimited. Why would a vendor charge $100, $1000, or even $1000? Why not just make the money trading?
If I'm a truly successful trader and therefore qualified to train others, then if a trader comes and offers me $10000 to show them my methodology or whatever, why would I do this? $10K? Please, it's in a day's work, and far easier than working with someone new who doesn't know what they're doing.
I'm an educator of sorts, but in my field, the top 10 or so people in the WORLD still make less than $200K per year. My only real option for money is to teach. So, basically, my question to all vendors is this:
IF you are making great money like you say you are, WHY are you selling your methods for a fraction of what you would make in a day?
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I am not a vendor and I am not a trading coach, but let us consider a few things:
(1) Money is not everything. If you are just going for money, you won't be a coach. But coaching can be more fun than sitting in front of your screens and trade.
(2) Some are better coachs than traders. This does not mean that their systems and methods are flawed, it can simply mean that they suffer from boredom and lack of attention, when trading, and prefer that others trade for them.
(3) Training others will make you discover new ideas and explore new ways, which you cannot imagine otherwise. Giving your methods away - assuming they are proven successful - does not necessarily mean that your returns will diminish. Also it does not mean that others can use them.
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I'm not a vendor but just thought I would float some ideas about this...
If you treat your trading as a business then it would make sense to have several revenue streams for that business to de-risk it. Especially as your trading revenue is probably going to be erratic having consistent revenue stream coming in from training would have its advantages.
Oh, come on people! They sell their method because they cannot make a living trading. If they had a philanthropic need to coach and help people, or even to feel good about themselves, they would go out and coach little league, teach people to read for free, or hold free trading webinars on Big Mike. I worked for one of these vendors for 2 years, I know how much work is involved in running a small trading education business. No one in their right mind would put in that much work because they 'love to teach'. If you so much love to teach, and you can pull money out of the markets every day, then trade to 2 hours and teach me for free for another 2 hours. No one works 10 hour days running a trading education business because they love to teach. I love to teach too, so on Tuesday nights I go to my church, and teach 3rd and 4th graders, and guess what, I don't charge them $1000 a pop. Stop kidding yourselves!
Last edited by monpere; February 8th, 2011 at 11:11 PM.
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I think few traders make it to the point where they can pull out an 'unlimited' $ amount each week/day. I think due to limitations and thinking that they end up not doing as well as they would like and they see some success and believe that training others is noble (EGO) and gratifying (EGO).
I believe there is some merit into the not going the down the road on there own. If you take a look at 'Sharky's Thread' I think you will find a lot of newer traders who are hungry and eager (like we all are/were) to make millions in trading. I think grabbing a few students consistently is easier than grabbing a few points for most traders that have not decided to master their art.
Greed is so easy to sell to.
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