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

[RL8093]

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?

ROFL

 

[shortie]

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?

Quote from RL8093:



ROFL

ROFL indeed

 

[Spike Trader]

BP , whatever you do man , dont leave this forum . in fact i,d like to see you post more often....

 

[BPtrader]

Quote from Spiker:

BP , whatever you do man , dont leave this forum . in fact i,d like to see you post more often....

I am not going anywhere, considering I am paid 50c per post and 5c per reply to the post. This is easy money, beats trading, too much stress in trading.

 

[clooch]

Quote from pchan:

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.

Pchan rules!!! your posting virginity is broken

i cant wait to see what you post next year

 

[clooch]

Quote from pchan:

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.

Pchan rules!!! your posting virginity is broken

i cant wait to see what you post next year

 

[pchan]

Quote from clooch:

Pchan rules!!! your posting virginity is broken

i cant wait to see what you post next year

Lol that was last years post a bit late. Don't go to far away I may drop the holy grail at any moment.

 

[Ghost of Cutten]

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.

Tell him to read Market Wizards, New Market Wizards, and "What I learned losing 1 million dollars". There are enough blowup tales there to convince anyone with a brain cell that trading is risky enough to carry you out. If he still won't learn, then there's nothing you can do except let him blow up and file bankruptcy.

If he listens, convince him to start with only 20% of his capital at risk, so that if he blows up, he still has 80% left. Also tell him to trade via a limited liability corporation, so he won't lose his home if he blows up with a big debit.

Ultimately though, people are dumb morons when it comes to risk, and 95%+ will generally blow up at least once before learning to control it. Chances are your friend is no different.

 

[Ghost of Cutten]

Quote from volente_00:

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.

Rofl, that's a good one

Reminds me of the story about what it's like getting into sailing:

"Stand under the shower, then tear up $100 bills for 8 hours - if you find that enjoyable, then it may make sense to buy a yacht and learn sailing"

 

[kidPWRtrader]

Its pretty simple... in a game of chance, one needs 0 skill to put on a winning trade. To put on winning trades, consistently, is where the edge comes in.

The only issue is for those on the right side of the curve putting on the winning trades, they will probably draw from their ego and tell themselves how amazing they are and how no one figured it out as quickly as them, but alas they did it.

Whatever he does will be the right choice. If he trades live and loses money, he learns about himself and might get rid of the ego. If he doesn't have an ego, he will probably listen to you and wait and won't need to pay the $$$ for the same lesson.