It would surprise you to know the things that go on behind the scenes at the day trading companies that promise success and millions of dollars after you buy their magic program. The most common thing that anyone learning how to day trade will go through is purchasing several day trading strategies, software, and coaching.
Together, all of these costs can reach tens of thousands of dollars. Most day trading companies out there sell packages upwards of $5,000 (and much higher) and then want you to pay $300 a month for coaching. I’m very lucky that when I started day trading the prices weren’t so high.
Day Trading Indicators
The very first day trading company I did business with had fancy automatic resistance and support areas. They were touted as the best thing since sliced bread. I started with a friend and we were amazed at all the fancy colors and signals (I was fresh out of high school at the time).
We were finance and business majors and knew about the extensive work that Fibonacci has done with pattern recognition in nature. Once we realized that people were applying Fibonacci’s principles to the stock market we bought the first day trading company that offered it.
Turns out you could create the same indicators for free
The truth about day trading Indicators is every day trading company out there uses the same indicators. They add some fancy colors, give them a snazzy name, and call it unique. Why do you think that companies lock their indicators and don’t let you have access to see how they are programmed? If they did then the word would spread that they are just using basic indicators on steroids. If I ever decide to sell a training program through this site you bet the indicators will be as open as Tiger Woods relationship.
In House Day Traders
Many day trading companies out there say they have a team of traders that trade for the company. You have heard the line before right? Yes of course we are all day traders here or yes I am a day trader. I want you to think about something very hard for a second.
If day trading is so lucrative why is there someone behind a desk telling you what to do?
Why are they trying to make you buy software if they could be day trading and pursuing their dreams like traveling around the world? That ladies and gentlemen, is a shameless plugin for my travel blog where I share how I day trade and travel around the world at WanderingTrader.com. Seriously though, there are “experts” that run live trading rooms where you put your livelihood at stake and your family’s livelihood at risk. Why are they sitting behind a desk showing you how to do something they could do themselves for hundreds of thousands of dollars a year?
Day Trading Coaches
One of the last day trading companies I was with found an old friend to start running their live trading room. A young man that has never seen a day trading chart is all of sudden trying to teach you how to day trade. The first company I joined had a very similar situation. I was with the company for roughly 2 or 3 months when a brand new person was thrown into the live trading room. So new that they didn’t know the trade setups or even how to run the strategy correctly. I could talk all day about this subject but I think the message has been made.
Day Trading Strategies
Similar to day trading indicators, most day trading strategies on the market are a variation of another strategy. A lot of the trade setups that I have seen in the last 10 years of my day trading career are the same exact ones that I learned when I first started. They have just been injected with steroids and given different names under several different companies.
From the very first day trading company that I joined there have been 5 different companies started by students. The reason why people continue to fuel these companies by buying their software and strategies is because we are lazy. Most people don’t want to spend all week back testing an idea in their head. It’s the same reason only 5%-10% of day traders make money.
Everyone tries to take shortcuts because day trading is so easy. When I first started day trading I was working full time, going to school full time, and I wouldn’t sleep 2 or 3 days out of the week because I would stay up all night looking at charts. I kid you not, I needed Nyquil to help me sleep and wake up for my university exams and tests.
If you really want to start day trading take it seriously from the beginning. The more you slack off the more money you will waste and the longer it will take you to make money.