BarroMetrics Views: Unrealistic Expectations
Here’s a bonus blog. On May 15, at the Grand Hyatt, Singapore, I said that there were two main barriers that prevent a ‘Beginner’ from attaining success:
- Unrealistic expectations and
I should explain that for me a ‘Beginner’ is someone who has been unable to attain trading success despite a number of years in the markets. He may be someone who has never paid a penny for his education, for seminars or books. He may have bounced from freebie to freebie hoping to catch the ‘Holy Grail”. Or he may be someone who buys every new book and attends every new seminar; and here is what links the two: neither exhibits any behavioural change.
As a result, he keeps on doing what he has been doing and thus he obtains the same results. What keeps him in this loop are the barriers of unrealistic expectations and denial. And this brings me to the bonus blog for today.
Here’s a post I received today from Larry Levine that expresses quite elegantly the dangers of unrealistic expectations.
Larry is a floor trader who provides educational services. I have not taken his courses and so I express no opinion on their quality. But I do agree with much of what Larry has to say, especially on this subject. The emphasis in Larry’s post is mine.
From the Desk of S&P Trader Larry Levin
Today’s Secret Trading Tip
Setting and Accomplishing Realistic Goals
We’ve all heard of the famous commodity Guru who turned 25 thousand dollars into 25 million dollars in 1 year…
You’ve also probably seen ads and websites claiming phenomenal returns with minimal work. You know the ads I’m talking about, “87 of the last 90 trades have been winners”, or how about, “insider tells how he averages 5,000 dollars per day from his mountain top retreat while spending quality time with his family and pets.”
If you remember one thing from my daily emails, PLEASE REMEMBER THIS:
I believe trading with unrealistic goals, or no goal other than to make a lot of money is a sure-fire way to lose all of the money in your trading account, and quickly.
I also believe promotional material like what I outlined above does a lot of damage to the average trader. After reading enough of this material it’s easy to believe these types of returns are normal, and not the exception or hype they really are.
We all want to believe these kinds of returns are not only possible, but expected. And we ultimately make poor trading decisions while chasing the dream .
Reminder: I believe trading with unrealistic goals, or no goal other than to make a lot of money is a sure-fire way to lose all of the money in your trading account, and quickly.
(snip Promotional material for Larry’s courses)
Best trades to you,
President & Founder- Trading Advantage