Now...this is a difficult topic to write on without "shooting" any of the trading courses out there. But, let me take up the challenge!
Just like technical analysis, there are also signs to look out for if a trading course is credible. Well, at least this is what I think personally.
1. Sleazy websites
An example of sleazy old-fashion-long-copy-sales-letter-style websites is at: http://www.seeingwithoutglasses.com. They will provoke you with many questions, keep on bragging about how good they are, show tonnes of testimonials (unverified), keep on asking you to take action NOW! and are very looooonnngg. Wait! I am not saying the products of all such websites are bad. But for selling a financial course...I am not so sure...Makes me wonder if the course provider is established (and why they cannot afford to make a proper website?) and what is the real mission and value behind the company. Why they only talk about the good money and not highlight the risk that is associated with trading?
2. Our trainer appears on CNBC!
So what?! Going on CNBC is not too difficult, I believe. Well, Mr Clemen Chiang used to appear on CNBC. Now, his company has disappeared. For something juicy, I have been told by a friend that she knew someone working in CNA and hence arranged for the course provider (that she was working for) to be interviewed on CNA. It is THAT easy. Nope, no scrutiny, I think they don't verify if you are really a successful and profitable trader.
3. Course fee used to be $5000 but just for today - $3000
Does that sound familiar? Many of the course providers out there apply NLP techniques extensively. Many organise previews on the pretext of free trading education. Then during the previews, they will make the participants "feel good" through the NLP techniques and apply pressure subtly to make them sign up for the paid course on the spot. Will a genuine course provider whose mission is to transfer trading knowledge go to that extent? And typically, the course fees are exorbitant in order to cover for all the marketing costs. That's why I will get suspicious when the course fees run up too high. Come on, all the knowledge can be obtained from books and the Internet - what's the big secret?
4. We have THE TRADING STRATEGY to let you make lots of money!
Nowadays, it turns me off when I see/hear trading course advertisements mention anything about trading strategy. Trading is not about any trading strategy or trading system. There are more - psychology and money management. But I guess these are hard to sell.
5. I made $10 million in 2 years!
Ok, did you lose it all in the next year? Make the most money within the shortest period of time - ya, this is what most trainers brag about. Ok, let's say it is possible for them to make millions in a couple of years, they could be lucky. Did you question what is their starting capital? Ok, some claimed they only started with a few thousand dollars. Then, did they lose the money subsequently? Trading is about making money consistently. Jesse Livermore, the legendary stock speculator, went bankrupt a couple of times throughout his lifetime, even though he was trading successfully. A professional trader that I met has been trading successfully for the past 18 years. He prefers to keep himself debt free by paying up fully for his house and car because he told me that he is not sure when his trading will turn sour. So I am only impressed if you can make money consistently for the last 10 years, not one hit wonders.
6. We provide lifelong after course support
I wonder if anything like this is possible at all! It could be sustainable if the number of students is small. So far my experience is, when the number of students gets bigger, service level will drop. The trainer will reply with generic response or perhaps get the more senior students to help mentor the newer students. Seriously, who wants to continue with such non-profit making work? UNLESS the course provider has more things to sell to you in the future!
7. Look at what our students have to say!
First make sure the students are not getting any commissions either for appearing on that testimonial video and that, they are not marketeers for the course providers ie, they receive commissions for new student sign-ups. Ignore all those feel-good comments like "The trainer is very committed and friendly". What's the use? The question I want to ask them is: "What are your trading results?" Something for the students here: they may claim they made thousands in a few days. So, did they continue to do it subsequently, or did they lose the thousands and more?
So hopefully, the above can help you when you are looking out for your next trading course.
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