Investing & Day Trading Education:  Day Trading Academy

What Day Trading Companies DONT WANT YOU TO KNOW

It would surprise you to know the things that go on behind the scenes at the day trading companies that promise success and millions of dollars after you buy their magic program.  The most common thing that anyone learning how to day trade will go through is purchasing several day trading strategies, software, and coaching.

Together, all of these costs can reach tens of thousands of dollars.  Most day trading companies out there sell packages upwards of $5,000 (and much higher) and then want you to pay $300 a month for coaching.  I’m very lucky that when I started day trading the prices weren’t so high.

Day Trading Indicators

The very first day trading company I did business with had fancy automatic resistance and support areas.  They were touted as the best thing since sliced bread.  I started with a friend and we were amazed at all the fancy colors and signals (I was fresh out of high school at the time).

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We were finance and business majors and knew about the extensive work that Fibonacci has done with pattern recognition in nature.  Once we realized that people were applying Fibonacci’s principles to the stock market we bought the first day trading company that offered it.

Turns out you could create the same indicators for free

The truth about day trading Indicators is every day trading company out there uses the same indicators.  They add some fancy colors, give them a snazzy name, and call it unique.  Why do you think that companies lock their indicators and don’t let you have access to see how they are programmed?  If they did then the word would spread that they are just using basic indicators on steroids.  If I ever decide to sell a training program through this site you bet the indicators will be as open as Tiger Woods relationship.

In House Day Traders

Many day trading companies out there say they have a team of traders that trade for the company.  You have heard the line before right? Yes of course we are all day traders here or yes I am a day trader.  I want you to think about something very hard for a second.

If day trading is so lucrative why is there someone behind a desk telling you what to do?

Why are they trying to make you buy software if they could be day trading and pursuing their dreams like traveling around the world?  That ladies and gentlemen, is a shameless plugin for my travel blog where I share how I day trade and travel around the world at WanderingTrader.com.  Seriously though, there are “experts” that run live trading rooms where you put your livelihood at stake and your family’s livelihood at risk.  Why are they sitting behind a desk showing you how to do something they could do themselves for hundreds of thousands of dollars a year?

Day Trading Coaches

One of the last day trading companies I was with found an old friend to start running their live trading room.  A young man that has never seen a day trading chart is all of sudden trying to teach you how to day trade.  The first company I joined had a very similar situation.  I was with the company for roughly 2 or 3 months when a brand new person was thrown into the live trading room.  So new that they didn’t know the trade setups or even how to run the strategy correctly.  I could talk all day about this subject but I think the message has been made.

Day Trading Strategies

Similar to day trading indicators, most day trading strategies on the market are a variation of another strategy.  A lot of the trade setups that I have seen in the last 10 years of my day trading career are the same exact ones that I learned when I first started.  They have just been injected with steroids and given different names under several different companies.

From the very first day trading company that I joined there have been 5 different companies started by students.  The reason why people continue to fuel these companies by buying their software and strategies is because we are lazy.  Most people don’t want to spend all week back testing an idea in their head.  It’s the same reason only 5%-10% of day traders make money.

Everyone tries to take shortcuts because day trading is so easy.  When I first started day trading I was working full time, going to school full time, and I wouldn’t sleep 2 or 3 days out of the week because I would stay up all night looking at charts.  I kid you not, I needed Nyquil to help me sleep and wake up for my university exams and tests.

If you really want to start day trading take it seriously from the beginning.  The more you slack off the more money you will waste and the longer it will take you to make money.

30 Comments

  1. What trading companies would I want to avoid, don’t like the sound of that trading room if I’m honest, nice article by the way.

    1. Hi Craig

      If you wish contact me via private email and I can tell you the name of a company which uses these practices.

      Paul.

  2. Good article Marcello. I like many others have spend a few thousand “looking” for a system which makes trading easy. Clearly that is a dream (or nightmare). My view now is, look for a mentor with a few straight forward rules and a relatively basic system and importantly one who trades the system. Once the basic principals are understood just go & trade them.

  3. This read cements what has taken me 3 tries at programs/coaches to learn over 4 + years and many dollars. It is very important to ask the person you are considering to work with to either observe them actually trading in the live market, get some validation of their individual trading success. IIf you can’t see live trading with an actual account (either sim or real), or some actual verification of a positive trading account…run! Anyone can sit and edit videos, look back at historical charts and mark them up as to where trades occurred. If the person or company you are looking to mentor with can’t execute live with you they are a fraud.

    Also, I agree that there is no one magic bullet, special indicator or strategy to “easy” trading. If there was wouldn’t everyone be using the same ones and doing the same thing!!! However, you can develop a plan with simple tools and a a few strategies that work for you the majority of the time that will allow you the opportunity to achieve a longterm positive trading account balance no matter what the daily market environment variance may be. Day trading takes patience, exceptional psychological self awareness, determination to achieve mastery at your trading plan, and most of all discipline to stick to your plan, and the ability to critique your performance.

    I do believe that there are people who truly understand day trading and can assist others in achieving their trading potential without ripping them off and making false promises. The key though, is in the traders desire not the coach. Goes back to that old saying- You can lead the horse to the water…
    You can find a fantastic mentor but, if you aren’t willing to put in the sweat equity you cannot and will not succeed. We all have the ability to learn. But day trading is not just about learning. It is about application of the knowledge you learn to the level of mastery and beyond. I read a fantastic book that called this unconscious competence- ( being able to perform at such a level that the desired behavior is second nature.- for example- like driving a car. When you first learned to drive a car you could barely do it and remember everything at the same time. But eventually you begin to drive without consciously recalling each step, as you have become unconsciously competent at it).

    If you have been had by dishonest people touting themselves as successful coaches in companies that just ripped you off; don’t let it sour you. Learn from those experieinces and move forward, so you can realize your full trading potential. You cannot live in past moments or in the future, but living in your current moments preparing for your future is a fantastic place to be! As for my trading, I too will get there. Not there yet but willing and able to continue to put in the time and effort to achieve the mastery I know is required. The rest will follow….

    There will always be a bump in the road. It only becomes an obstacle if you allow it.
    Best of wishes to all traders on this journey. Marcello you are the example of living the dream not just having the dream! Well done.

    A fellow trader in training,

    Kim- Sunrise, Florida

  4. Hi Marcello!

    I’ve discovered your website a few days ago, and i really liked it! Now i ask if you’ll continue with the Project?

    Thanks for all.

  5. Hey Marcello, thank you for the honest and informative article…
    Being new the idea’s of day trading, I feel blessed to have stumbled upon your site.
    Hope to learn all I can here!!

      1. Just read your article…I am amazed that there is an actual cool trader out there. Just inhereted some money and I would like to invest some of it in MYSELF as a trader. I’m hoping you could show me the ropes. I’d be more than happy to compensate you, I’d have a friend help, but honestly I don’t trust them and I know nobody is going to invest my money as educated as I’m willing to be. Thanks again, and please feel free to contact me anytime.

        Ken

  6. Marcello:
    I enjoy your website, found it few days ago and like the up front straight to the point answers. Great Job Oh by the way what is the project?

    Glenn

    1. I’m personally training someone to day trade and recording the entire process Glenn… very excited to show the results!!

  7. Hi Marcello, Great article and am enjoying your site. Just found it last week. I look forward to learning more from you. Thanks!

    Also wanted to pass on compliment to Kim above – you really really nailed the essence of day trading. Well done!

  8. Marcello,
    Just stumbled across your web site yesterday and so far really agree with what you are saying. How can I get training from you?
    Thank you.
    Jeff Kleis

  9. I was reading your post and I am interested to know about day trading, I have lost of money with a few day trading company.

  10. Hi Marcello, I know you from your former employer. Always enjoyed your work, wasn’t as impressed with their indicators tho. The guy that replaced you was obviously a novice. Good article. There are tons of people that sincerely want to learn to trade but can’t find true mentoring. Most of what you find on the internet is over priced and marginal at best. Good luck on your new endeavors. I’ll follow with interest.

    1. Hey Alan great to hear from you! Why don’t you shoot me an email so we can catch up? Send me a message through the contact form I would love to catch up with you Alan!

  11. Hi Marcello, I was wondering when you will be choosing the winner of the Bad Ass Training Program Contest?

    What are the three indicators that you use when trading? Do you have a post where you discuss this and your rules for trading?

    Regards,
    Josh

    1. Deadline is April 10th, 2012 will decide probably a few days after that. The indicators & rules are shared with everyone in the training program

  12. would you please advice me with a daytrading firm that they charge less than $5 per 1000 share trade. and offer a good trading software. thanks

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