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When I first started my stock and option trading education, I
noticed many traders expecting a quick way to make big money in trading
business, myself included. Many software with so
called “indicators” were introduced to us. The demonstration looked
fantastic with easy in and out for a quick profit. I was amazed and
naively thought I have found a “gold mine” in trading. However, after
being in trading business for awhile, I feel the reality: There is no
such thing as a free lunch. Common sense tells me if the company’s
software is so accurate in predicting future market movement, why should
they sell it to the public? They will keep the “crystal ball” for
themselves and make mega money trading stock. The stock education company
only provides us a tool to trade. It is up to us to use that tool and
knowledge we have learned to trade the market profitably.
During a seminar I attended, one student, who is also a surgeon,
raised a question if he attends all
the seminars and reads all books about option trading written by
the instructor, can he trade the way the instructor is trading? The
instructor, who was a
veteran trader with over 30 years of experience, replied:
Let me go to your seminars and read all books about surgery written by
you, will you let me operate on your next patient? The surgeon got the
point. The instructor went on to say persistence is the key to be
successful in trading. He himself had blown up three trading accounts and
almost quitted before he redeemed himself. The rest was history. The main
lesson learned: There is no such thing as getting rich over night.
Trading is a business and like other businesses, we need to be
knowledgeable in order to be profitable. I have tremendous respect for
one trader who is very candid about trading. He is a real trader, not a
salesman. He never intends to sell anything. His main focus is to educate
his listeners and be realistic about trading. He repeatedly mentions
about strategies and winning probability in his seminar. Of course, I
still have some different trading philosophies with him but overall, I
have learned a lot from him. He teaches me to be a realistic trader. One
of his remarks stands out: “Nobody knows what direction the stock market
will move tomorrow. Everyone has a 50/50 chance. We need to find a way to
increase the odds working in our favor” He makes me realize there is no
such thing as a free lunch. If I want to be a profitable trader, I have
to work for it and be realistic about my goal.
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