Learning to trade – Is it education or Propaganda?
Have you recently decided to embark on a journey with a destination promising a four hour work week and endless riches? Perhaps, you have decided the daily work grind, and commute is not for you? Or You may have recently heard about individuals leaving their job and making millions of dollars from the financial markets. There can be many ways one is lured into the sleek and polished world of trading.
The journey typically starts with a simple google search like “Online Trading Education” You press enter, and a few seconds later pages upon pages of search results appear. It’s a smorgasbord of choices. As you scroll down the pages, you see links to different vendors selling many courses including Day Trading Education or Forex Education, just to name a couple. But how do you know who is the ultimate online trading educator or who offers the best trading education? Unfortunately, none of the options will provide you with an understanding of how the markets operate.
The Bitter Truth
For a moment think about the financial markets. For every winner, someone else has to lose and to make this zero-sum game even worse the markets are controlled by the elite few, who we refer to as the Institutional Traders (I.Ts). These I.Ts use manipulation and propaganda to have retail traders like you and I place orders, so they can have their own orders filled. Let me be clear. There is no natural law of supply and demand in the financial markets. The markets do however have order and logic. The supply and demand are established through manipulation.
So how do the IT’s entice retailers to place their trades where they want them to? Quite simple, if you can control the education platform, you will know exactly where the retailers place their orders because you have ‘educated’ them where to place the orders. I am not suggesting that every education vendor is working for the I.Ts but they have been subjected to the propaganda and once these vendors or gurus create their own education material, this further reinforces the propaganda as true education in the eyes of the masses.
Unfortunately, you will likely find that education promoting the following to be the most common ways of masking their propaganda as education.
- Support and Resistance
- Fibonacci levels
- Harmonic patterns
A current trading method peddled over the past few years has been Supply and Demand trading and many believe this to be the holy grail of trading. This form of trading is well marketed, and claims to teach individuals to trade like the smart money. I would argue supply and demand trading is just as flawed as the before mentioned methods. Fundamental analysis succumbs to the same problem and news trading is another form of propaganda. You can find plenty of stock market education as well providing a way of finding intrinsic value. Again, these training programs ought to be avoided.
Although these methods are heavily flawed and are not profitable over the long-term time horizon, the I. Ts allow these methods to work on occasion to keep the masses nibbling at the bait.
In future articles, the flaws of the previously mentioned methods will be explored further explored. We will also provide an alternate view to trading that allows you to spot the manipulation and tricks in real time. Be sure to subscribe so you can stay up to date as we lead you down this rabbit hole.