This question came in the other day from a trader named Randy:
Should the Essential of Trading Software (he means my trading course DVD) I purchased be able to teach me to become a profitable trader alone or will I need additional tools as well? Also, will I have to learn how to do programming to be truly successfull or can it all be done in a more simple manner, such as plugging data into a spreasheet by hand with simple calculations? Is this all explained your book + course?
Speaking to the latter part of Randy’s inquiry first, trading does not require programming or the use of spreadsheets or any major quantitative skills. Some methods one might employ do go in that direction as there are definitely strategies based on hard core math, statistics, and programming. You may have heard of algorithmic (algo) trading, which is automated and often based on such things. Most folks do not employ such complex methods. They get along just fine with existing chart packages, data/news feeds, and such.
That said, when it comes to system testing programming and/or spreadsheet skills can come in quite handy. There are charting packages like Metastock which allow for serious system testing. I have used them. I have also used Excel extensively. I’ve even done a bit of work in C (Jack Schwager of Market Wizards fame actually recommended I learn C for system testing purposes). Heck, back in the day I did system testing by hand with pencil and calculator. You definintely learn some things when you’re that closely involved in the calculations.
Getting back to what my course provides, a good analogy is like someone getting a PhD. In most cases there is a basic knowledge base and competency which the candidate for a doctorate must demonstrate via exams of some kind. This is the education the individual should have picked up through his or her classwork along the way. In order to actually earn the degree, however, the student must take what they know, add in considerable research, and produce an accepted dissertation.
I see my course as being the primary education the PhD candidate must have – the stuff that gets them through their exams. But It not only provides the information and knowledge the trader must have. It also helps the trader discover a path for himself or herself to achieve their trading objectives, which is the dissertation part of the analogy.
I don’t tell you how to trade. There’s no way I can do that because trading is a very personal thing. What I do is help you take your personality, your interests, your life situation, and your skills and bring them together to create a plan for your trading – one which gives you the highest likelihood of reaching your goals in the market.
Hopefully that answers the question.
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.
