The Trading Teacher
Below is a MRR and PLR article in category Finance -> subcategory Currency Trading.
The Trading Teacher
Summary
Many traders lack a mentor, as Marquez Comelab did when he began his journey into trading. Without a guide, he relied on books and seminars. In this article, he shares valuable lessons from his first trading mentor.
Keywords
forex, fx, trading, shares, futures, options, currency, currencies, exchange, invest, trade, business, wealth, investments
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When I studied investing principles at university, I was taught that a share's price reflected a company's value. Fundamental analysis offers many ways to evaluate a company’s financial statements to determine if a share is a good investment. You can conduct horizontal and vertical analyses?"fancy terms for comparing numbers?"and calculate financial ratios to assess liquidity, working capital management, long-term viability, and profitability.
As I started trading, I applied these concepts to the stock market. However, I soon realized that these analyses were ineffective for trading within a three-month timeframe. I wasn't seeking dividends; I wanted capital gains.
Dissatisfied with my knowledge and tools, and recognizing the impact of emotions on trading, I searched for new approaches. Recalling my university textbooks, I learned about technical analysis as an alternative to fundamental analysis.
One day, I stumbled upon a newspaper ad for a free trading seminar focused on technical analysis, led by an expert trader. I invited a friend, and we attended. The seminar was organized by a company offering trading courses; the speaker, a seasoned trader and author, made a strong impression. We'll call him Bauer.
Bauer captivated me from the start. He described the share market as a game where the objective is to legally take money from others, which intrigued me. I appreciated his candidness.
He explained that many people rush into trading unprepared, much like going to war with a plastic gun. Most lack proper training and underestimate the difficulty of trading. He emphasized that only about 5% trade profitably, so self-education is crucial.
Bauer challenged the idea of buying shares merely for dividends or long-term holds, arguing that it's just trading on a longer timeline. He advocated for trading focused on capital gains: buy low, sell high.
His words resonated. I was torn between short-term trading and long-term investing, but he made a compelling case for short-term gains. He asked what drove share prices up or down. I recalled my lecturers saying it was about intrinsic value, but he introduced a new perspective: price reflects perception, not just value.
Psychology, Bauer claimed, is key to trading success. The stock market operates like an opinion poll. Prices rise when more buyers are willing to pay more, driven by optimism.
He demonstrated a typical trader's behavior?"without a system?"which mirrored my own. I realized successful traders like Bauer viewed the market with philosophies and methods unfamiliar to me.
Bauer stressed the importance of developing a personal trading system, tailored to fit oneself. Without it, failure is guaranteed. He highlighted the value of learning tools and skills necessary for trading.
His advice lingered in my mind. Over time, I realized the wisdom of aligning a trading system with one’s personality.
Bauer showed us charts, filled with lines, curves, and symbols?"tools my market adversaries used to beat me. I wanted those tools badly.
I asked what program and indicators he used. Seven, he said. Being the only one engaged in dialogue with him, I soaked in his knowledge.
Another crucial lesson was to trade small at first?"as if each trade were the first of a thousand. Smaller trades mean smaller profits but also smaller losses. There’s no rush to get rich.
After the seminar, I gathered brochures and booklets, learning about the software Bauer used. Although I couldn’t afford the entire package, I was determined to buy the same charting software and learn to create my own trading system.
Meanwhile, my friend decided to focus on paying off a car loan before diving into trading.
A few days later, the seminar organizer called, noting that I seemed like a candidate who would benefit from their courses. I couldn’t afford them but had felt inspired by Bauer’s insights.
Though I didn't take the course, I procured the software from another source. I read Bauer’s books and embarked on self-education. Attending that seminar was a blessing. Thank you, Bauer, and to all who share their knowledge and experiences.
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