THE BRAIN SURGERY OF FUTURE CONTRACTS
Anyone who understands the capital markets, knows that a lot of money changes hands and a lot of money can be made with relatively small investments in knowledge, time and effort.
The desire to learn the tricks of the trade drive many people to join the various trading colleges. These people expect to graduate as capital market experts, or at the very least with the skills to be able to earn like the pros.
Before they start the course, and throughout their studies, they are euphoric. Everything the instructor shows them looks really amazing. With every lesson and every new analysis technique, they feel the money starting to flow their way. They are absolutely certain they will make money in the stock market.
They have access to a trading simulator, and start practicing. They “play” the market and each position nets them lots of money.
They feel like the kid who got a free pass to the candy store and want to go and grab as much candy as possible. Right now!
Many of my clients want to learn to become brokers. I am teaching the ones who want to learn how to make hundreds or even thousands of dollars a day. Right now. Even before the course begins, they run and open a trading account, deposit a few thousand dollars and start trading.
They find out very quickly that trading with real money is very different than trading with “Monopoly-money” on a computerized simulator.
The market stays the same market, though. The trading software, the charts, and the indicators all stay the same. Yet suddenly their behavior and reactions are completely different,
They start to realize that in order to succeed in the capital markets, the thing they need to learn the most, and the only thing they really need to know is about themselves and their reactions!
You may have experienced this yourself. Your mind starts playing tricks on you. You see an indicator to enter a position, yet your mind refuses to react. Your finger refuses to click on the mouse button. You start reacting without thinking clearly, you act impulsively and make the wrong trades. You behave illogically. You stop thinking.
This is exactly like a person who wants to become a brain surgeon. He sees a specialist, someone who has been doing brain surgery for many years, and asks this person to teach him everything he knows. The doctor takes him the hospital and lets him watch while he operates. He gives him a medical textbook about brain surgery and a model brain for him to practice on.
This person studies the tools, practices on the model brain and lo and behold, he can do brain surgery really well – every time he operates on the model the surgery is very successful and the model patient recuperates right away.
Can this person now operate on a real patient? Do you believe that after a few lessons and some practicing with a demo trading platform you can jump right into the market and start making lots of money right away?
Trading in the capital markets and in future contracts is a vocation like all others. You really have to look at things from the right perspective. No profession lends itself to making lots of money before you study long and hard, practice a lot and train under the most experienced professionals.
Before you start trading with real money you should spend many hours trading on the simulator.
Learn the rules and techniques you’ve been taught until they become second nature. Repeatedly enter into positions in many market situations. While trading on the simulator, do not allow yourself to lose money in even one position, and practice until you every entry and every exit is at precisely the right time.
After opening a real account, check whether your transactions are earning the same as when you practiced with the simulator. If you’re making the buys and sells at the right times and are earning nicely, stick to your work plan. If not, stop trading with real money immediately and go back to the simulator!
The most important thing of all is to learn from your mistakes and not repeat them… We are allowed to make mistakes. We are all human, but repeating the same mistakes and hoping for different results is pure stupidity.
Geva Gazit – CEO
Geva International Trading
Trading for a promising future!