We love GURU’s, don’t we? I mean, we just LOVE them. In all walks of life we seek out experts in their field to guide us onto the right path for success and ultimately happiness. Working out, romance, money management, debt management, religion, and of course, the topic here today — trading!
When it comes to trading we might love our Guru’s more than anywhere else. Whether self touted or legitimately gifted, we flock to Trading Guru’s looking for help on how to navigate the tricky waters of online trading.
If you’ve spent anytime around the online trading industry, you know that these Trading Guru’s can run the gamut from advice to education to cheerleading to stock picks. These guys can be cheap (free) or expensive (some over $1,000.00 a month) and for this monthly fee they promise to fill your trading account with that ever valuable commodity — cash! 대여계좌
With so many different Trading Guru’s out there and more than a fair amount of snake oil, I thought I’d put together an article describing 3 of the most important things you should be considering when seeking out your trading Guru.
1. Style of Trading
The first thing you’ll want to note is what method or style of trading does your prospective Trading Guru practice. Scalping? Day trading? Swing trading? Position trading? Investing? These are very different and separate trading disciplines, each requiring their own, unique skill set.
As trading is a highly psychological endeavor, aligning your personality to your style of trading is job one. For instance, if you have the attention span of teenage flea playing X-Box then it would be next to nearly impossible for you ro follow a position trading guru who holds trades from weeks to months. It just wouldn’t feel comfortable. Who cares if the guru in question has a killer track record? It needs to feel right for you or you’re not going to be able to follow it.
2. Track Record
Yes, these can be fabricated. Yes, some Guru’s do fabricate them. But if all you have to go on is the actual trades this Guru has made then I would have to say that any track record is better than no track record. And once you’ve looked at a few you will be able to separate the honest from the scam artists. A good Guru, if he is worth his weight in Guru-ness, will have this history readily available and will be willing to share it with you.
Now, when it comes time to view the track record you want to look at two things — Winning % and Average win compared to average loss. Why both of these things? Because a Guru can have a 90% win rate, but if all those winning trades are 2% and his losing trades are -40% then you will have a losing method on your hands and you want to RUN as fast as you can.