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People aren't making consistent profits because of a lack of effective education. Traders have to learn how to trade. The professionals have been studying market behavior for hundreds of years. |
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Go back as far as 1720, when Exchange Alley was the London stock exchange. In that year, stock of the South Sea Company opened at 128 1/2 in January, and rose to 1,000 in July, when the directors of the company sold out, the bubble exploded, and the stock closed worthless. There is nothing new under the sun! |
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Incidentally, Exchange Alley is where investors were first divided into ''bears" and "bulls." Another class was christened here, too. Those who were not able to meet their obligations became known as "lame ducks" because, when defeated, they looked like they "waddled out of the Alley"! |
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The watershed experiences of the Dutch Tulip episode, the crash of 1929, and the bull market of the 1990s, all have added to the knowledge base of the professional. |
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Anything that can be reduced to mathematical expression has been. The hypothesis, the modeling, the testing, the analysis, the interpretation are all part of our ongoing education. |
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Value theory, efficient market theory, chaos theory, and random walk theory have been expostulated to explain market behavior. We've even seen a theory tied to the alignment of the planets. Trading theories are endless. |
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Trading systems, magical algorithms, black boxes, and programmed trading have all been offered as ways to assure successful trading. |
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For years, the financial community has helped to spread the myth that trading was hard. It was complicated. It was beyond the abilities of mere mortals. |
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So how can you hope to compete against all of this knowledge? Isn't it obvious that the professionals have an insurmountable edge over you? Can't you see that it would be impossible to learn all of this stuff? |
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Baloney! What's really obvious is that no one knows everything. Each professional just knows about a special area of knowledge. Fundamental is fundamental, technical is technical, and never the twain shall meet! |
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Anyone can learn to trade. Look no further than the "Turtles" to demonstrate that truth. |
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Richard Dennis, the legendary Chicago commodity trader, who turned $400 into $200 million in just 18 years, wanted to settle a friendly argu- |
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