We've recently heard a fellow trader say that the Holy Grail of Trading Forex Is….Teaching Forex Strategies!
If you can get in front of a group of aspiring traders with the promise of "backing up the Brinks bank truck", then you've discovered the true Holy Grail of Forex!
Teaching forex is a lot easier than sitting in front of the charts waiting for a trade to set up or watching a perfectly timed trade stop out to the darned pip, only to turn around and go the way you had predicted it would. Teaching forex is easier than going through the agony of having just moved your stop a few pips to give you some breathing room for a trade that ended up not working anyway. Teaching forex is way easier than going through a losing streak when the market goes into one of those totally uncooperative moods and makes you doubt your strategy or question why you're even a forex trader. If you teach forex, you don't have to deal with any of these frustrations.
All you have to do is attract a group of hungry currency traders by promising them untold wealth if they trade your foolproof proprietary system. Send out lots of emails with claims like these:
Only 10 spots left!
My students made 20,000 pips in the last six months!
Turn $5000 into a million in a year!
I can promise you that this class won't be offered again.
Spend only five minutes a day working from your own home.
Learn the secrets only elite bank traders know!
Never before revealed strategies.
So easy, you could teach your children how to trade like this too!
As the teacher be sure to get positive testimonials from some of your real or imaginary top students who say they have made unfathomable profits trading your system. And if that bottom line is not impressive enough, just add a few more trades using Photoshop to boost the profits shown. You can even pass their statements around to the class. Don't worry, no one will ask if they are actual or fabricated statements, or traded with a demo or live broker, and no one will ask if the statements have been audited. In fact, no one will compare the trades you show in the statements to the method you teach. They'll just look at the bottom line to see how much money was made.
Make up a great story about how you used to work as a laborer or a school teacher before you had the amazing opportunity to study with a brilliant forex mentor who you met through an extraordinary set of circumstances. All the while be sure to project that you've got money and let everyone see that you drive a very expensive car - even if you've just rented it for the weekend of the class.
And then all you have to do is stand in front of this hungry group of students, turn on your projector and look back over finished completed currency charts and "cherry pick" all of the perfect trades that worked and show over and over again how easy it is to spot this particular kind of trade. Is it hard to find a strategy to teach? No, it's actually very simple because every strategy has times when it works and it's easy to just isolate those successful examples on the charts you show.
Why bother showing the trades that didn't work??? That would only be confusing and disheartening to the students. Whatever you do, don't use a simulator like the Forex Tester to explain your thought process as price action sets up. After all, if you were to call a trade on the simulator without knowing what is coming next (just like real life trading) and it failed, that wouldn't look very good, would it?
And as the teacher, don't explain sound money management either. It's not sexy. It confuses people and it scares them to think that they have to protect their money from accumulated losses. That puts attention on the risk side of trading instead of the greed factor that you are fueling. It's prudent as the teacher to give lip service to money management because then you've covered your own behind. But, don't worry, you can fly through this subject in a matter of minutes, because again, no one will question you on it. Just keep your focus on showing your students how to make money fast!
By the way, this key part of money management that was missing from everyone's "training" was actually the impetus for our development of the Forex Smart Tools. We needed to see for ourselves how much we stood to lose every time a trade didn't work out. No one we studied with was giving us that kind of information. And with our backgrounds in business, computer science and mathematics, we began creating precise position size calculators for our own use. And much to our delight, not only did these calculators start limiting our risk, we discovered that they also were increasing our gain because of the principle of adaptive position sizing. But more on that in a later blog...
OK, back to those teachers...
Guess what??? As the teacher, you can make a ton of money holding these seminars. The next class that is offered, do the math and see what kind of profit the teacher is making. We've taken courses where 100-300 people have paid $3000-6000 for a weekend course. That's about a million dollar take for a weekend. You only need to do that a few times a year and you've really got it made. How's that for a Forex Holy Grail?
Think we're exaggerating? We ourselves have taken about 20-30 various courses like this. Don't ask us how much we've "invested" in our "education". The scenario we've outlined above is not an isolated description of any one teacher that we're targeting. With slight differences, this has been the pattern that almost every course we've taken has followed. At some point we realized that we were just like Charlie Brown and Lucy when she kept tempting him to kick the football and then always pulled it away and each time he kept believing that "this time will be different".
Basically ask yourself: If what these teachers are teaching really works as well as they say it does, how come they're bothering with the hassle of dealing with students and marketing their classes instead of just purely trading and enjoying their financial freedom?
As the famous saying goes..."Those who can, DO. Those who can't, TEACH!"
In the following blog articles we will present a concise checklist you can use to avoid many of the mistakes we made when we were duped by forex false prophets of profit. Here's the direct link to the next blog: Forex Mentor or Forex Miner
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