Sahtt,
Since you used to be a professional trader, can you advise on if those trading classes worth the money? I received some credit to attend some class offered by Investools, some of the advance classes cost between $5-10K. There must be a reason for the high cost?
Thanks
I won't outright discount a program I am not familiar with, but I have never heard of a single documented case where classes like that paid off.
Always keep this truth in mind - although there are scalable methodologies that pay off consistently, 99.99% of professional traders take advantage of market opportunities with
limited scalability. Say I locate an inefficiency and tell you about it; if there is 10 grand worth of profits there we will be fighting each other for it.
By this I mean if I provide you all the same tools I have, explain what to look for and how to take advantage of it in real time, I am flat out giving you some of my money. It is that simple.
I traded primarily closed end funds, berkshire hathaway (a shares and the b shares before they were converted), and preferred shares. You simply cannot get long 10,000+ shares of any of these (no more than about 6 shares of BRK.A and 75 of BRK.B when it was 2k a share) without taking massive risk - you cannot get in and out quickly enough to manage risk properly.
99.99% of successful traders focus on high reward, low risk "anomaly" trades. These are not easy to find. The only reason I learned to trade well was because the first firm I worked at gave you a monitor showing the other 200+ traders' activity (all but a few who had enough pull to stay off of it).
It is still extremely difficult to figure out why they were making the trades they were, but at least I could grasp the kind of trading tactics that worked and those that didn't. I got out of the game about a year and a half ago for a run of the mill finance job because the liquidity in what I traded dried up and the risk vs reward wasn't worth risking my capital anymore. I have a couple buddies in their 20's that have 7 figures in the bank and none of their strategies are truly scalable - i.e. by teaching you how to effectively trade like them, they are literally handing you hundreds of thousands of dollars.
Lastly, a trader with an edge, sufficient capital, and a good risk management strategy he actually implements will make 5 figures a month. They aren't going to give up having no boss and no schedule for a teaching job. A washed out trader with no useful information might though :smile: