Why Trading and Investing Will Never Work

Have you ever saw a trading mentor who boasts that they make money using trading with technical analysis, then switched to investing when the market crashed and made lots of money on it? These so called traders will then offer seminars of both technical analysis and investing. Making money off of gullible newbies thinking that they too can make money like a genius.

But in my opinion, these technical analysis traders turned mentor are just scamming you of your money. Teaching technical analysis alongside fundamental analysis is just full of contradictions that you are wondering if they are sane on the head. Maybe not, there’s money in it after all.

They just pretend

Yes. They are probably pretending to make money on any strategy, both technical and fundamental. Let me explain.

Technical analysis is..

Technical analysis’ main idea is market efficiency. Meaning, the market is efficient that you don’t need to look at the company fundamentals, because everybody can read it and there are smart people out there and their buying and selling would adjust the price to its “right” price.

If the price is overbought, some people would sell up to make it right price. If the price is oversold, people would buy and repeat the process.

The indicators gives them the confidence that the price they are seeing is the right price and focus on that price. Because the market is efficient. This is the main idea behind technical analysis.

Fundamental analysis is…

Investing using fundamental analysis is quite the opposite. Investors thinks that the market IS NOT EFFICIENT. See where this is going? Since the price is not an authority, we should not believe that the stock price is the correct price. That’s why for an investor, Mr. Market is just an emotional business partner, his price is not really the price of the business. The price of the business is what we think is according to our own analysis and buy when that happens.

Pretending to know both…

Both strategies are contradicting. And people who says they use both are either trying to sell you something or quite frankly — dumb. Dumb is probably best suited for newbies that thinks they can do both TA and FA without knowing the underlying differences in their concept. Trying to sell you something, is for the mentors who sells technical analysis courses that also teaches fundamental analysis and boasts that he/she uses both. That said mentor after taking a screenshot of their portfolio that are green that took him 50 trades before the perfect shot. Or for those people who don’t have the patience to take 50 trades to get the one perfect shot, they can just edit the portfolio in the browser. You never see red portfolios with these people don’t they?

So why am I posting this? Why do I care if people wants to pay 300,000 for a seminar that probably won’t help him and useless to him. Why do I care if people wants to give up their full time jobs and become a trader?

I don’t really care much because its ultimately their decision. I’m just spreading education as much as I can to prevent those intelligent, sane people with great jobs from quitting to become a full time trader.

Trading with technical analysis and investing are opposite sides of the coin, you can’t be both.

Deep down, I know why people resort to such things. Why people wants to become a trader using technical analysis. Because they think the money is quick. But let me tell you something, the quickest way to get rich is to get rich slowly. And slowly, I mean investing. So don’t quit your job to become a trader. Keep your job, keep on piling money and invest for the long term. That’s how you get rich. If you become a trader, you are only making these trading mentors rich. Those people that are just faking it to make it.

A personal story…

I have a friend an engineer that went to these 300k seminars. He said, it changed his life. Took the plunged and quit his job to become a full time trader. A few months in, the coronavirus hit, and he is now offering trading courses for 100k. I think we all know what happened, the crash took him out and to compensate, is now teaching other people how to trade.

I know that he is using the fake-it-til-you-make-it approach. How can someone with only months of experience in fulltime trading be able to teach someone to trade profitably? How can you say that technical analysis works if only a few months in, you get wiped out? I know that there are people who makes money on technical analysis. But aren’t you ignoring those people who uses technical analysis and went bankrupt? You don’t hear them saying technical analysis works. Because they are the silent evidence that it doesn’t. People who lose trading don’t speak so you only hear the people who survived. You haven’t seen the cemetery of failed technical traders. Or you just intentionally ignoring it? Trading is just full of these kinds of people. They have perfectly good jobs and now forced to scam other people. Look at all the trading mentors right now. Look at their history, they all just faked it till they made it.

Don’t be like them. Take the high road. Become a productive member of society and become an investor.. Learning how to invest can be easy start now and build your wealth for the long term.

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