Recently, I have been re-listening to some of the Market Wizard series by Jack Schwager, a very famous author of the set of books that you’ve no doubt heard of. I first read the books years ago, but I like to keep coming back to them because as we progress in the development of Littlefish FX, I feel like I always take more out of them.
This time, I was listening to the books again and there was a common theme for Hedge Fund managers that struck a real chord with me, and then came up in a conversation with a customer the other day.
I am a firm believer that it is almost impossible to teach someone a set of rules to make them a profitable trader. If I taught you the exact rules I use to trade, the chances of you making money are almost zero.
As you can imagine, there is far more to this point than meets the eye. See, the challenge is – you aren’t me, you are you. Your life experiences and mentality are very different to mine, and if I force you to trade like me there’s no guarantee it’ll get you any success.
What I do believe I can do, though, is arm you with knowledge and support you through your experiences, and through this knowledge and support make you an extremely profitable trader. The key here is to give you the knowledge but also enough freedom and the ability to ask questions in a safe environment so that you can use our information and knowledge to build your own profitable trading system and rules.
This is why, when we first designed the Forex Trading Course, we considered what we actually need to do to help people we would employ. I’d like to think this makes us different, in the sense that in our course, we arm you with as much of the key information as we can. We give you the mathematics about how to design risk reward rules, rather than simply giving you rules like “you must always win twice what you risk” – which, frankly, is a nonsense rule unless you know your win rates.
This was always my frustration with other Forex Trading Courses I read. They all imply that you could be the individual being advertised – and honestly, you can’t. But that’s irrelevant, as you can still make a lot of money being you.
This is why we have gone on to offer a Prop Trading Programme. You may be familiar with the Trading Turtles, who were following simple trend following rules. The reason why this strategy worked is that they looked for people similar to themselves who could then operate the set rules they gave them.
Although this may have worked for them, to my mind this is extremely limiting. I believe that we can actually do something far more interesting by providing freedom to the individuals and ensuring we support them. This is part of the reason I don’t like strict rules on trading: far too many of these ‘prop’ firms set stupid risk levels and rules that just make no sense unless you have a very specific strategy to fit them.
This means that you either change your strategy, which never works, or you will fail and you get burnt. Our view, on the other hand, is: let’s expose people to what we do, let’s get people to sit with our profitable traders, let’s arm them with as much information as we can that we think is relevant, and then let’s give them a safety net.
If we do these things well, then I believe we will breed a brand new set of profitable traders with their own rules, and the more new and different profitable rules we find through our Forex Trading Course and Prop Trading Programme, the more we diversify our risk. This then becomes a self-fulfilling prophecy as the team all benefit from the combined collective learning and profitability.
Well, that’s the idea, anyway. I’m pleased to report that so far, we are getting some great results (read some of the early reviews here). I’m sure I will update you over the coming months, but I wanted to get down a few thoughts on why we structured the Forex Trading Course and Prop Trading Programme like we did, and why we think we are onto an absolute winner.
I’d definitely suggest that you go talk to our traders in the Live Trading Room and Trading Hub and start to use them alongside the information in the Forex Trading Course, as the more exposure you get, the better your learning experience. After all, it may take 10,000 hours to become an expert, but it only takes 20 to 40 hours to become ‘reasonably good’.