Why profitable traders sell their systems via seminars etc?

[ipoppy]

Hi,
Just wonder; what is the point for profitable daytrader to sell his/her trading system on seminars if day spent on trading itself will give more income and less hassle than teaching others. Sorry but where is the logic in this?
Are they all so charitable?

 

[secondary]

zz

 

[ipoppy]

Ego.

Assuming they are successful.

All of them claim that they are. Otherwise they would never be able to sell their product, whatever that is. But then original question comes back, if you can make more on this system than cost of one day seminar why are you here then?
Having say that I have read many posts on this forum claiming that some people help them become successful by day seminars etc. Again, true or not; don't know. Not because I am thinking about it, just trying making sense out of it.

 

[Trader333]

The logic is that it makes good investment sense to diversify income streams and especially passive ones. If you fall ill as a day-trader then your income stops dead so by having other interests that do not necessarily involve being active all the time will help.


Paul

 

[secondary]

zz

 

[oildaytrader]

They don't sell their profitable systems or methods, unless they want to bid 1 bar higher or want their system to stop working.

 

[ipoppy]

They don't sell their profitable systems or methods, unless they want to bid 1 bar higher or want their system to stop working.

Why do they want their method to stop working?

The logic is that it makes good investment sense to diversify income streams and especially passive ones. If you fall ill as a day-trader then your income stops dead so by having other interests that do not necessarily involve being active all the time will help.


Paul

Sorry Paul but if their ill they will be better off to trade from home rather than do anything else. In fact its the best job for someone with long health problems if you think about it. Unless you talking about possible blindness as a cause of diversity. Otherwise there is something fishy in all this.

 

[oildaytrader]

Why do they want their method to stop working?

They don't want their method to stop working.

Example .There is a stock for sale at 10 % below market price, the buyer tells all his competitors about the stock.The thousands of competitors rush in and start bidding higher, the stock is no longer at a discount, the method of the mentor has stopped working.period.

Why would he want to sell his method?

O D T

 

[wibble1234]

They realise they can make much more money, more easily by doing seminars. Instead of sitting in front of a screen all day getting stressed out by the price action they can spend a small number of hours a week running seminars. If they are good at running seminars that is!

And don't forget that how good they are at running seminars is in no related to how good a trader they are. In fact the relationship is often inversely proportional All they need is to be able to convince people to pay money to hear them speak.

 

[Trader333]

I know of traders who are very successful at day-trading and who also sell training and courses. One who I was speaking to only last week who is a NYSE floor trader said that when he goes on holiday his income from trading stops. He also said that he wanted to get more passive income so that if he was unable to trade, which can easily happen if you have a prolonged stay in hospital, some income would continue. I agree that there are many who only sell courses or training and who don't trade themselves but that is not who I am referring to here.

The view that all you need to do is have a single source of income (ie day-trading) has been historically shown to be flawed when compared to those who diversify income streams. The same applies to investments, those who do well diversify and those who don't are at greater risk of loss.


Paul

 

[DionysusToast]

How would a NYSE floor trader be able to teach a retail trader how to make money ?

 

[tomorton]

I don't sell seminars or systems but I would do if I could trade profitably AND offer these services (full-time employment makes the one difficult and the other impossible). If you have a commodity that is of high value to someone else, it makes absolute financial sense to profit from it.

Seminar bookings offer a high value-added return on the limited time invested: it should be possible to get a group of delegates to pay over cash in advance, which is a nice bit of hedging for any given trading period.

Just because someone charges for teaching a profitable skill does not mean they cannot use it.

 

[Trader333]

How would a NYSE floor trader be able to teach a retail trader how to make money ?

In this case with much greater effect than I thought was possible.


Paul

 

[Lord Flasheart]

I know of traders who are very successful at day-trading and who also sell training and courses

Paul.....who are these traders and do you personally know of any on T2W who are clearly successful in both areas. If the question puts you in an difficult position,I understand.

 

[Black Swan]

Does Richard Branson stop at creating a record label? Does he fook, why would any other successful businessman simply stop? I'm a successful trader, I have several other ideas for making money from the markets, any intellectually curious individual would do the same surely? If you are genuinely excited/turned on by your industry, why not hunt for other niches?

There's also a myth that, if everyone bought and sold on the same indicators, then the vendor's system would be rendered obsolete What...in the $3tril a day turnover day business that is the forex market? You could easily have 10,000 of your customers buying and selling at the same x-over, using the specific system, on a variety of platforms (SB and DMA) and it wouldn't generate any difference....How many millions of stoopid *players* do you think buy/sell manually when the MACD crosses on; the 5 min, the 10, the 15, the 30, the 1hr, the 4hr, the daily...? How many autobots do the same?? it makes no odds, so you don't have to do a gollum with your precious system, you can sell it, trade the dailys and still make cash from lots of projects...

 

[oildaytrader]

There's also a myth that, if everyone bought and sold on the same indicators, then the vendor's system would be rendered obsolete What...in the $3tril a day turnover day business that is the forex market? )

Thats only 2 bn per minute spread over different exchanges, pairs , banks and brokers.Guaranteed feels with excess liquidity ?

 

[montmorencyt2w]

I would have thought that in at least some cases, it might be worth doing for tax reasons.


So, for that and some of the reasons stated by others, I certainly don't think everyone selling trading education is a scamster.

On the other hand, it doesn't necessarily follow that being educated by one of these people will make you a better trader.

 

[oildaytrader]

I would have thought that in at least some cases, it might be worth doing for tax reasons.


So, for that and some of the reasons stated by others, I certainly don't think everyone selling trading education is a scamster.

On the other hand, it doesn't necessarily follow that being educated by one of these people will make you a better trader.

It does help a trader, if they find a good mentor to start with.

Unfortunately , the mentors/system sellers/method sellers are themselves ineffective at trading . they need to rely on other sales.Same old selling point "I am a professional trader , I offer training education ,I do it to give something back , blah blah blah"

Instead of lies,marketing gimmicks and snake oil, if they came clean "I offer trading education and training , which I believe will help you find the way to profitable trading . I may not guarantee success , it will make your path easier etc.".They should be realistic and realize people catch up with them.

 

[maiden22]

I would thought that the simple answer is that most system sellers / educators etc are not profitable traders. Some will be but I would imagine that they are a tiny minority.

In general, if you are dealing with a vendor it is probably best to assume that you are dealing with a person whose primary motivation is to make money from you.

Before excitable types wade in, please note that the above is clearly a generalisation. I'm sure that your friend/cousin/maiden aunt (delete as appropriate) is immensely profitable and beyond reproach, and that their system is immeasurably valuable and on sale at a ridiculously cheap price.

 

[DionysusToast]

In this case with much greater effect than I thought was possible.


Paul

But no example ? The reason I ask is that people pay to be on the floor for a good reason and the advantages thay have are not available for the retail trader.

Surely then -a NYSE floor trader would need to be teaching retail traders to do something the NYSE guy doesn't do on the floor...