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How to play the game

Blog - How to play the game


The True Cost of Education


Trading is a funny old game.... we've all got it sorted... we can all literally pick up heaps of information from the Internet... we can digest the information for free and we can then go on and make our millions......................................surely that's how it works...................... 


If you asked me the question 5 years ago... Sam... how easy is trading and how can I learn?.... I think if I was being candid with you all - I'd probably point you in the direction of every single free website on the planet and tell you to jump on Stocktwits to learn what stocks to trade .... I'd tell you it was super easy to learn.... and that anybody can trade the financial markets successfully and travel the world whilst drinking as many cocktails as one wished to drink ... and impress as many women as one wished to impress.

This was indeed my mentality.... I always thought to myself - I'll go it alone, I'll live and die by my sword and I'll figure it all out through trial and error.... and EVENTUALLY.... I'll be a profitable trader and get that damn Lambo.

How wrong I was.

Before I start a bit of a longer form blog post ... I should point out some facts &some helpful hints regarding Trading, and although they may seem reasonably obvious, I think it would still be prudent give a little insight.

1. 95% (some estimates actually say 97%) of Traders give up.... which means they put money into the stock market... then give up after blowing account after account.

2. Most Traders give up after only 12 months and tell themselves it's impossible.

3. Trading is a Science.... if you wanted to be a Dentist.... an Architect .... or a Mathematician... you wouldn't expect to wander into a Dental surgery and start pulling out teeth.... Trading pays MASSIVELY more than each of these fields when performed correctly over a period of time - so you must prepare .... just like an Architect does when preparing new plans or a Mathematician does when proving ground breaking theory - to expect to just wander into the Markets without a solid foundation is a little misguided.

4. One of the biggest contributions to a Traders success .... is the unwavering support of an unbelievably supportive partner - I've spoken to countless profitable Traders in both London and abroad... they all say the same thing... if you don't have a supportive and understanding partner - you'll NEVER make it.

5. Trading is Simple... but it isn't easy.... so why would you treat it like it is.

6. There's a misconception that as a successful and profitable Trader you must be correct 90% of the time.... this could not be further from the truth.

7. As a Trader (it is my opinion).... you only need to make the correct decision 50% of the time (some profitable Traders I know would say only 40% is needed).... but the beauty of Trend Trading is - WHEN you get it right.... by knowing how long to let a trade run before exiting - you will extract MAXIMUM profit from your trade and thereby cover any potential small losses incurred during the other 50/60%

8. Trading should be treated as a business... within any business you have overheads... it's just that, within Trading... those Overheads are viewed a little different. For example - you have Broker Fees.... Trading Software... Trading Communities... Laptops... Desktop Monitors ... Losses.... you simply MUST treat your Trading like a business.... and you need to prepare your business as best you can.

The keener eyes among you all may have noticed 1 thing missing from the list of business expenses... and it's something that I purposefully omitted.... it's not because it's not relevant.... but because it is probably the best business expense you'll have... Education.

As it stands.... I currently have more than 5000 Subscribers and a host of thank you messages all across the world for all the work I've done over the last 12 months as well as Incredible testimonials from some of the best guys I've ever had the pleasure to meet (both in person and those I've mentored via SKYPE) - they all say the same thing - education was by far the best investment they've ever made.

I've had many emails... from a lot of you on this very email list... thanking me for helping them turn their trading around - this means the absolute world to me... if my blogs and Social Media have helped your trading move to the next level and you are turning a profit - it truly makes my heart swell with pride... I can't begin to describe how awesome it is.

To the other side of that.... I also get many requests for tutoring / mentoring from those of you that have a little difficulty in making consistent profits in the market... either through poor stock selection... or not having an awareness of entries / exits / Trading Plans etc.... I usually just point people to my online course and say something along the lines of.... if it looks interesting to you.... I'm happy to chat it over and I'll give you some 1 on 1 coaching too.

9/10.... I get an email / message back saying.... oh.... I didn't realize i'd have to pay - thanks - but I'll get the information on the Internet for free.

This in itself is obviously not an issue... it's completely fine .... but invariably .... what happens (and I know because I was 1 of those guys).... you must then start to add up the true cost of an education in the Financial Markets, and by going it alone and going through the free content (which is quite frankly confusing) - you will pay for an education in the form of losses - this is the reality of things unfortunately.

Losses will quite literally teach you how to trade the Financial Markets, obviously it's never ideal - and unless you have a friend or connection who is incredibly skilled in Trading the Financial Markets - consistent losses and an eventual blown account are only just around the corner.

Most unprofitable Traders will attempt to master the markets by skimming through YouTube video after YouTube video and spend close to 2 years slaving away .... i get it... it makes complete sense to me.... I was there once too.... but when you factor in the cost of this "education" - it certainly runs into the thousands .... Sure - you might not have to pay that $1k/$2k/$10k (depending on who you choose) for proper education..... but what's the true cost? it's likely 2 years of wasted time and countless losses?

So now we've identified a potential issue - what's the solution?

Wellllllll... as mentioned previously - Trading isn't easy.... it's simple when taught correctly... but it's definitely not easy (i hope you understand the distinction) - and in order to be successful - you MUST have an understanding of Price... Technical Analysis and also have a fully formed Trading Plan with VERY specific Rules in place and above all, you MUST understand risk.

Whether you can find someone to teach you how to trade for Free or if you have to pay someone... the 1 thing you must do is find someone who will take you under their wing and teach you the style you wish to learn. I was VERY fortunate that I found an experienced mentor in London who taught me everything I know and I was lucky in the fact I didn't have to pay for my tuition (I attended MANY seminars / presentations where i was quoted anywhere from £5k to £10k to learn the style of Trading that I now know inside out) - I was 1 of the lucky ones... I met a complete gentleman who only wanted to pass on his knowledge in return for a few coffees and someone to chat to... my story is 1 built upon a foundation of luck.... otherwise I've no doubt - I'd still be day trading and trying to enter the markets with complete luck because until then - I had no clue just how much an education would have on my life.

Fast forward 2 years......I've been able to give up a 6 figure career in London - that's what education has done for me..... Knowledge really is what pays in this game.... If you don't have knowledge.... you're as good as dead.... just like if you play Call of Duty blindfolded - it's only a matter of time before your head is blown off.

I must also add... that most Traders who find a path to success are the ones that have built their wealth on a foundation of failure... and whilst it takes an incredibly strong character to walk through the fire of loss after loss - it simply doesn't have to be this way - not nowadays anyway.

Let's be clear.... I'm not saying to you that the best thing you can do is go and purchase my online course.... quite the opposite actually... I think the best thing for you all to do, is join Trading Meet Up Groups. 

Connect with Traders in your local community... build a network & hunt down those that are more skilled than you are. That is the route to go down, it is certainly more appealing that smashing through 200 You Tube videos and searching for the "holy grail".

If you find in a few months you still can't get what you're looking for..... my course will still be there - it's not going anywhere... neither is my community - I'll gladly be your educator - but I really do urge you to meet like minded people in your local area - this is what taken me to the next level and it might be something that can take you to the next level also.

I hope this blog has helped in some way.

If you’re interested in education and you struggle with your trading results… we’d love to hear from you.

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Sam McCallumComment