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jpennybags

Trading for All?

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How would it would it work if we (USA) were to set up a training program that would teach people to trade? Given the jobs programs that are available and the costs. Give them 5K... let em go (after training). Would folks make the most of it? What would be the percentage that would make it after a year? (their losses (or profits) getting eaten by you and me) Odd question... I know. Could anyone be able to receive training that would allow them to scalp for small profits... supplement their income... nothing else... or something much more? No going large...

 

Really odd question...

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I think it would be a lot more lucrative just to let them get drunk, fly them to a casino, and let them gamble with the $5K - I honestly believe their odds of making any real money would be a lot higher than with trading as rookies that under cap'd with a tiny account and trying to compete with the algo super-puters and hedge funds.

 

If they were holding for long term of at least say about 60 days the odds start to go a lot higher they may prosper.

 

Aloha,

 

Dave

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How would it would it work if we (USA) were to set up a training program that would teach people to trade? Given the jobs programs that are available and the costs. Give them 5K... let em go (after training). Would folks make the most of it? What would be the percentage that would make it after a year? (their losses (or profits) getting eaten by you and me) Odd question... I know. Could anyone be able to receive training that would allow them to scalp for small profits... supplement their income... nothing else... or something much more? No going large...

 

Really odd question...

 

We have already done a version of this. A lot of these traders live near me. We didn't give them $5,000 directly; instead, we gave their firms, collectively, something to the tune of $800,000,000,000. We called it TARP. Each employee of these firms received as much as an average of $2,800,000 each if you include the mailroom clerks.

 

They didn't use the money to trade; in fact, they used it to pay back the high interest portion of their TARP loans so that they can be free to pay themselves bonuses with the rest of the money. These bonuses allowed them to continue to live near me. I think the money has taught them to have a sense of entitlement. I don't think a sense of entitlement is a good trait for a trader to have.

 

Overall, it was a bad idea. Sorry.

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" Would folks make the most of it? What would be the percentage that would make it after a year?"

 

My guess is the % would be the same anyways.

no need for the govt to give people money to trade. They are already happy to throw it away in the market themselves.....all such a system would do is be another subsidy for the brokerage firms.

plus there is no real infrastructure or skills build and its most likely going to end in the pockets of a few anyways....may as well give everyone simulators, let them trade and the few winners get to keep 50% of the overall pool, the govt saves 50% of their original budget, and saves on brokerage.

 

what you are assuming is a couple of things....

one - trading can be taught to just anyone

two - $5k is enough to not be undercapitalised

three - there is a prescribed method for teaching and strategy that works that can be universally applied to everyone

 

it would make for good headlines.....'government training to encourage speculation'....isn't that how many people lost jobs in the first place? :doh:

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I have people ask me all the time if I can teach them how to trade. I usually shirk the question, by laughing and saying… "You couldn't afford me"… I then go on to gently explain that I would have no way to be compensated for the money I would be missing out on. I can't believe that people ask… seems more appropriate to ask how you got started…

 

Recently though, a family member asked… I said "no" straight away. Being as it was family it got me to thinking about it. She is a teacher, and has the summer months off. She just wants to make enough to supplement her income during the time that she has off… no interest in making a living.

 

I could teach her to trade one simple set up. Get the trading platform set up with attached orders and an automated "move to break even" designed to scalp 10 ticks. I could have her averaging $150 per day on 3 contracts in no time. I think the rub is going to be getting her to sit on her hands and wait for a single setup… maybe restrict her to just a few hours per day. Start out in simulation until she gets it.

 

I'm going to have to think about it more, but I think it's possible to get it done in the evenings, maybe 6 sessions (though I could spend more time… it's family). Maybe I'll start a thread about the experience this summer.

 

The notion of training "all" to trade floated out of this. Of course it's absurd.

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How would it would it work if we (USA) were to set up a training program that would teach people to trade? Given the jobs programs that are available and the costs. Give them 5K... let em go (after training). Would folks make the most of it? What would be the percentage that would make it after a year? (their losses (or profits) getting eaten by you and me) Odd question... I know. Could anyone be able to receive training that would allow them to scalp for small profits... supplement their income... nothing else... or something much more? No going large...

 

Really odd question...

 

some time ago I read the "Market Wizzards" written by Schwagger, and at some chapter (I don't remember being in the first edition of the second one), one of the people that has been interviewed said that regardless the effort (time and money) he put it, human nature prevailed and none (or maybe 1 if I remember correctly) managed to be sucsessful in the long run..........

 

if I am mistaken and somebody knows better please intervene

 

TW

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some time ago I read the "Market Wizzards" written by Schwagger, and at some chapter (I don't remember being in the first edition of the second one), one of the people that has been interviewed said that regardless the effort (time and money) he put it, human nature prevailed and none (or maybe 1 if I remember correctly) managed to be sucsessful in the long run..........

 

if I am mistaken and somebody knows better please intervene

 

TW

 

I know... that's what is eating at me. Love my family... do I really want to go down this road. LOL... maybe I'll just put her on the payroll and have her run errands for me... mow the freakin lawn... here's the grocery list. Dunno!!!

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I'm going to have to think about it more, but I think it's possible to get it done in the evenings, maybe 6 sessions (though I could spend more time… it's family). Maybe I'll start a thread about the experience this summer.

 

That would actually be pretty interesting, I reckon. Does she have any idea at all about trading or what you do, or would she be a complete, start from the first step novice?

 

BlueHorseshoe

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You say she is a family member so I guess you know her pretty well. Then you say a scalping method is that because you think it would be easy to teach or because it would suit her the best. Whatever she learns, it has to suit her personality....I don't think you'd have her do your errands for you, you need someone to talk to - remember ;)

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JP - when ever someone asks me about earning 'supplemental income' I give them a list of books to read.....market wizards, reminiscences of a stock operator...blah blah.

A few simple enjoyable ones.....

then I say when you have read those come back to me and if you are still interested I will help you.

 

The number of people who have asked that question, read those books and come back and asked questions - 1 out of about 20 who have asked.

That one person has gone on to develop his own style (more long term swing and trend following) and is making a full time living from it, and I never really needed to do much more than push him in the right direction.

 

So rather than duck the question....test their commitment first. (Then do what Mits suggests...SIM trading to most likely humble them) :))

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Thanks for the replies. I'm already off the hook because my answer was "no". This is just bad... can't believe I even entertained the idea. I think I'm done with it though.

 

If she wants to do this, I need to treat this as if she were an actual student, and teach her to trade. Where would we be after a couple of months... who knows. I don't really want to devote that much time to what may turn into a lost cause. I would have to methodically sit down go through all the decisions I make during the day and figure out how to explain it all. I'd probably mess myself up... geez... then my account would be leaking.

 

I do believe my answer has changed from "no" to "Oh, hell no". Love you... get a part time job.

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