The Importance of Trader Education
I’ve seen a lot of different trading blogs out there and most of them touch upon the same topics over and over again. They go over stuff like the psychology of trading, how to recover from terrible losses, or rags to riches types of stories. Today I’m writing this blog in the hopes that I add some new information for the trading community by discussing the importance of trader education.
As soon as babies are born, their neural networks start to develop and they begin to start forming neural connections. These neural connections result in equating two things together. Mother equals milk. Toy equals play. Right from the beginning, these tiny humans begin to learn. And the learning does not cease until someone dies.
After a few years of forming primitive connections, these tiny humans get enrolled into the education system. This is done with the hopes that when these tiny humans grow up and become boring tax-paying adults, there may be a job lined up for them that requires the skills that they’ve learned along the way.
Some people will tell you that going to school is a waste of time. And that may be true. But I cannot agree with such a generalized statement. Most of the time the people that say this are the ones that have been failed by the education system. These are people who have encountered terrible educators and poorly developed curriculums. The neural connections that were supposed to be stimulated were not adequately formed.
Schooling and education are what you make of it. If you have a terrible lecturer and are learning nothing from their class but still have to pass it, what do you do? Do you just hope you’ll learn enough for the exam or do you pick up another textbook and read it? Just cause the education system is failing you in does not mean that you have to fail. The only way you fail is if you give up on yourself. Pick up another textbook, look information up online, learn, learn, learn. The real learning and education has always been in your control. If your classroom won’t stimulate those neural connections, you need to do it yourself.
In the trading world, the education system cannot fail you because there isn’t an education system. There is no centralized trader university that will take traders from zero to millionaires. Even the information that is available often contradicts itself at times. You find one person that says to long low float small caps in order to make $0.10. You might find another person that says you should be shorting large caps in order to capture $5 moves. What do you do?
You learn from every person and every source of information available to you. Trading is like putting together a 100,000 piece neural-puzzle. At first you don’t know where anything goes, but slowly as time goes by you start to find pieces that connect to each other. Every piece of information and every alternative view you find in the trading world, embrace it. Digest it. Process it. Figure out where that piece goes in the neural-puzzle.
When I first started trading I read every single book I could find and listened to every trader I could hear. I read over twenty different technical analysis textbooks. Why? Because all of them had their own perspectives and I wanted to hear them all out. Early on, I speed dated through different niches. I tried small caps, mid caps, large caps, going long, going short, OTCs (yes I know, those were dark times), and even swing trading. I joined many different rooms and embraced everything those instructors had to teach. Did I agree with everything? No. But I made sure to extract gold nuggets from every place I went to. Each of those nuggets being a small piece of my incredibly large trading neural-puzzle. Only after I tried everything did I realize what I liked and what fit my personality. It’s equally important to figure out what type of trading you like as it is to make sure that type of trading fits with your character traits.
Puzzle piece after puzzle piece, your picture starts to become more and more clear. But in order to do that you have to be willing to learn. You need to become your own education system. You have to be hungry to devour knowledge. You need to figure out what type of trading you want to focus on and then start learning from everyone within that niche. There is no such thing as the golden chatroom or a god trader that will make you become profitable. Learn from everyone and everything you lay your eyes on. Then let your trading style evolve to become your own.
As humans we are born to learn and form those neural connections. With no education system set in place in the trading world, we become our own education systems. Go out there and read, watch, listen, and inhale all the information you can. Go become your own trader education system.