“A 5th grader can learn to make money trading better than you “
How can I say this you ask? Having traded for more than 20 years, the answer is quite simple.
Children are conditioned from an early age to look up to an adult, follow instructions and obey authority. If you give a child instructions on how to accomplish a task that interests them, they generally try and follow what the adult says, step by step to get it done. Making money isn’t as important to them as doing it right. They understand what authority is and generally speaking, respect it.
I can teach the average 5th grader how to make money trading much more easily than an adult and here are some reasons why:
1. A child does not have any preconceived ideas about trading. They are a sponge, just waiting to absorb information. They are just there to follow instruction in order to achieve the goal.
2. Making money or losing money isn’t as motivating for them as it is for you. They are merely having fun following your instruction and trying to achieve their goal.
3. A child understands, when given an order by an adult or authority figure, it had better get done or there will be some consequences.
4. A child does not have bad trading habits.
5. Most children are familiar with using a computer and looking at graphics, so giving them an opportunity to learn something while working on a computer is interesting to them and will keep their attention.
6. If I instructed a child to click the buy button when a stock reaches a certain number (price), they will be happy to wait, with great anticipation, for it to reach that price then click the buy button.
7. If I instructed a child to sell when that stock reached a specific price or prices they would. Why? Because they were told to.
The fact that children do not have bad trading habits is critical for the purposes of this article.
Are you beginning to see the differences?
Adults, on the other hand fill their trading day with bad habits, broken disciplines and excuses, often times in a very defiant and conditioned way. (Learned responses)
Do you want to make money trading or do you want to give yourself a barrel of excuses why you didn’t?
1. Discipline: Do you want to make money trading?
2. Patience: Do you want to make money trading?
3. Money Management: Do you want to make money trading?
4. Emotional Control: Do you want to make money trading?
Here, I point out the 4 essential skills sets needed to be a successful trader and no they are not clichés there are in fact the Holy Grail for successful trading and making money.
If you think you can trade without these 4 skills you are sadly mistaken and will fail, Period!
Do you like making money?
If the answer is yes, then what you need to do first is purge all the nonsensical excuses you have conditioned yourself to accept over the course of your like and start fresh, respect the 4 essential elements of trading and begin anew.
Follow the rules and required skills of trading and start trading through the eyes of a child. They respect the authority of an adult, why don’t you respect the markets and your money?
If you lack any of these necessary skills, then perhaps it may be time for you to “Grow down” and start seeing the markets through the eyes of a child.
Do you like making money or excuses? The choice is yours.