Teaching Feedback

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Mike, I finally got to teach my first class on trading earlier this month (albeit a small group). And to tell you the truth, I don’t care much for teaching. I think it went ok, but I didn’t realize how many people actually like to refute trend following although I show them proof even with my own systems and financials. Some reasons I noticed were: the fact they think trend trading is boring since they are trying to pay their daily bills with the market right from the start, they don’t like holding positions overnight and they can’t seem to wrap their head around the fact that even though they make 300%+ gross annual gains day trading they still don’t show a net profit. I show them basic money management techniques as well as the costs of trading, but they still won’t consider it and think its all about fixing their intra-day entries and exits. I’m glad you never gave up on teaching. I would probably never have “gotten it” if you did. Kudos to you for being a good teacher. –Michael

Thanks.

7 thoughts on “Teaching Feedback

  1. They are equating trading as if it is a day job. They want to earn money with it every day. It has to do with impatience and a short attention span. The market rewards patience and discipline.So their looking at exits now instead of just entries. Maybe in 20 or 30 years they will start looking at some of the other pieces of the puzzle.

  2. Their equating this to a daily job, go to work make some money. This is impatience and a short attention span. Markets reward patience and discipline not activity. Day trading will raise your stress level, fry your brain and probably your account. So their talking about exits instead of just entries. I guess in 20 years or more they’ll start thinking about the other pieces of the puzzle. Wager size,mixture of markets to trade, correlation, volatility,a time frame longer than 5 min charts.

  3. Michael has equated trend following to playing poker for years.

    Day traders are those hyper guys at the poker table who think they have to be in on every hand…they’re easy marks in the zero-sum-gain of poker, just as they’re easy marks in the zero-sum-gain of futures/comodities.

  4. DGDYE Day traders could also be compared to those hyper active flies that get in your house in the winter time. I remember PBS had a news story on the dot.com bubble in the late 90’s. I saw guys pointing and clicking. One guy, hundred or more trades. They were in a frenzy attempt to give themselves carpal tunnel syndrome. When it crashed i guess if they had a account left. They probably put it into real estate,and flipped houses. Now i would say their on a street corner flipping hundreds of hot dogs. Contrast to the 20 year position i had in physical silver,and got rid of it 3-4 weeks before the recent top. I think random luck played a huge role.The novice or buffet would do back flips and think they were smart, not me. I am no longer a slave to sliver. I see i posted twice,didn’t think the first one went through.

  5. Some people think they have to keep on moving to move forward, sometimes it is just better to stand still and wait for the right moment…

  6. True…as bad as buy-and-hold is, overtrading is even more deadly, especially when you don’t understand the math of expectancy and optimal money management.

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