Told My Friend About Trading. How To Teach Him Being Realistic?

You could ask him to give you $1000, then kick him in the balls. That way he'll know what it feels like to trade for real! Fun eh?
 
Quote from lescor:

You could ask him to give you $1000, then kick him in the balls. That way he'll know what it feels like to trade for real! Fun eh?
More...


When I first started out, one of the most relevant sayings I heard about being a trader was


Build a fire

Now stand over that fire and start dropping $100 bills into it

If you can do that without any emotions going through your mind then you are psychologically ready to be a trader.
 
Who are you to put limitations on him?!
And why are all the negative jerks supporting that deision?
He'll do as well as he'll do, and it's not your decision.
Maybe he is a "steve cohen" type natural. Why mess with his confidence and how do you determine that 30% is reasonable? Maybe he'll make that every week.
Your limitations are yours, don't project them onto him.

Quote from shortie:

I mentioned to a friend of mine that I trade so he got all excited, has read a couple of books and has done sim trading for 3 months. After 25 trades he is +50% and even more excited now.

I am telling him that this type of return is totally unsustainable and if he ever trades for real, it will be more like 30%/year if things go his way. If things don't go his way he will blow up like thousands before him. I am not sure he really listens to what I am saying.

My worry is that he has no money and if he finds the money to trade he will blow up and will end up in the bigger shithole than he is in already.

He is trying out various methods that generally include support-resistance and a couple of indicators from what I saw. He holds maybe 1-10 days. Whatever he tried has worked for him so far. I attribute this to the beginner's luck for the most part.

I told him that he needs more trades that will cover bear and bull markets and that he needs to pay attention to the unrealized drawdowns. I also told him to look at extreme cases where stocks/markets drop or go up 10-20%/day to get a feel about what may happen when he applies the trading methods he is learning.

What else should I suggest?
More...
 
Quote from lescor:

You could ask him to give you $1000, then kick him in the balls. That way he'll know what it feels like to trade for real! Fun eh?
More...

That was funny!!!
 
How much experience and knowledge would you require in someone else to manage your money. Answer that question and you will know when it is time to start going live.
 
Quote from shortie:

I mentioned to a friend of mine that I trade so he got all excited, has read a couple of books and has done sim trading for 3 months. After 25 trades he is +50% and even more excited now.

I am telling him that this type of return is totally unsustainable and if he ever trades for real, it will be more like 30%/year if things go his way. If things don't go his way he will blow up like thousands before him. I am not sure he really listens to what I am saying.

My worry is that he has no money and if he finds the money to trade he will blow up and will end up in the bigger shithole than he is in already.

He is trying out various methods that generally include support-resistance and a couple of indicators from what I saw. He holds maybe 1-10 days. Whatever he tried has worked for him so far. I attribute this to the beginner's luck for the most part.

I told him that he needs more trades that will cover bear and bull markets and that he needs to pay attention to the unrealized drawdowns. I also told him to look at extreme cases where stocks/markets drop or go up 10-20%/day to get a feel about what may happen when he applies the trading methods he is learning.

What else should I suggest?
More...


you are jealous that your friend is doing better than you.

you can't accept the fact that someone with less experience is actually doing better than you.

you are frustrated that you are losing but your friend can eaily make money.

you managed to persuade yourself that trading is very difficult, while in fact trading is as simple and easy as taking a shit in your bathroom: step 1=take off your pants. step 2=sit down. step 3=shit. Trading is as simple as that.

you don't get the fact that someone will succeed and someone will fail. simply because you are the failing one, you assume your friend cannot be the succeeding one.

someone is making money from the market, but it's not you.
 
I think we can all relate to how exciting it is to get started in trading. Be honest-who else here thought they would be raking in the big bucks in no time? :D
 
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