Trading courses and day trading

Some time ago I gave my opinion about trading courses in general, and the truth is that I was rather hard. However, I want to write a few more things about this issue to clarify matters.

In the world of trading there are two different poles: on one side day trading, and, on the other side medium term trading or long term investing.

Day trading courses

The difference is like day and night. There are winners in both approaches. The problem of day trading is that the majority, if not all, of traders, lose in the long run. The ones who win are brokerages and sellers of hope.

So, does it make sense to teach a day trading course?

From the point of view of the teacher, of course, it does.

The reality is that there is a huge demand for short-term activities nowadays.

This is the era of short-term behavior.

Day trading short term

It is something Hans Hoppe has understood very well when he talks about time preference. If it were a stock market we would find ourselves in a bubble of “short term philosophy”.

Knowing that this demand exists there will be parties willing to fill it. And that is what the guys who pay for trading courses obtain and pay for: hope.

The problem is that hope is quite expensive.

The fact that those courses cost 300€ for two days of “education” is not even significant. The worst aspect about this is when these guys apply their knowledge in the real markets and start losing huge amounts of (not always though) hard earned money.

Those who believe in day trading as a future career being trader, please remember these words.

Day trading quimera

A day trading course is an oxymoron.

I do not understand how there are people that think that some “day traders” will show them the way to financial freedom for a couple of hundreds of bucks.

I have seen many guys claiming that they opened an account with 2 thousand $ and turned it into 2 or 3 thousand more every month.

Do you think a guy who is capable of doubling his money every month is going to waste his time teaching a course about that?

Some day trading gurus will be more “moderate” and will promise returns of 50 or 100% annually.

In fact, there are a lot of people who think that there are methods out there to win 10 or 20% monthly consistently. So the day trading gurus never run out of customers.

It is clear that day trading offer a lot of supposed advantages. Pictures of tropical beaches in the Caribbean; supposed day traders from home with five computers; financial freedom; quick richness; many guys giving positive testimonials. Compare to this, swing and trend trading have not much to offer.

Win 15 or 20% annually? Not really interesting.

Trading courses and trend trading

There are those people who know about the financial markets and know that reality is not that easy. They will tell us that if you are capable of winning 15 or 20% per year consistently you can be very happy. These people do not do day trading and usually apply trend following or swing trading using longer time frames.

This type of courses will not teach us the holy grail or anything that we could not find in the best trading books. But I have to recognize that these guys do not tell you that you can become rich quickly doing any sort of trading.

They sell reality, not hope, but the problem is that the majority of people who start in trading is looking for action and that one is to be found in day trading.

The fact is that there can be some valid courses for our trading learning curve if we do not have too much time to spend reading books or analyzing data.

200 or 300 € is not that much if you have good capital. Besides, there is the fact that you will meet some interesting people in those courses.

You will learn a bit a basic technical analysis, personal stories, and some personal “tricks”.

Some of the people who teach these courses are honest people who recognize that they do not make a living of trading full time. That trading is a part time income and that their objective with those courses is to teach people to become better traders and not to lose in the stock market. And you know, a lot of people lose there, so we could be happy if we belong to those who do not lose.

Day trading promises

On the contrary, in day trading you are promised the sky.

The supposed full time day trading teaches a course of 300 USD to 30 people (9000 USD) and with some courses like that he “makes a killing”.

Everybody believes the guy is a day trader, but the fact is that he makes his living selling courses not day trading.

You can be sure about it.

Thanks for reading and sharing.

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