The Role of Trained Experts in Technical Analysis: Why Paid Trainings Still Matter

Stock traders use technical analysis to forecast future price movements. But if the phenomenon of technical analysis can bring substantial profits, why do traders still dedicate time and money to paid trainings? This article explores the reasons behind this practice, drawing on the analogy of other professionals who also benefit from training, even if the resources are available elsewhere.

Just as one can read books to understand medicine or cook delicious food without a chef, why do you still need a teacher, doctor, or chef?

Why do you need a teacher when books are available? Why do you need a doctor when medicine is available at a chemist shop? Why do chefs give cooking classes when they can cook delicious food and enjoy the meal? Why do we need coaching for sports from a player when they can earn by playing?

Hoping that these analogies explain why the learning process is not just about the information available, but about the quality of the instructor and the guidance they provide.

Money, time, and education are critical resources in life. While learning through self-study can be effective, the learning curve might be steeper, and the financial risks higher. The value of professional training lies in the expertise of the trainer and the practical experience they can impart, which can significantly reduce the learning time and financial risks involved in trading.

If you choose to learn on your own and make mistakes in trading to find out what works and what doesn't, you're paying the market for your learning, which often comes at a higher cost than paying for professional training.

Additional Income and Opportunities

Many traders use their weekends to teach, much like a company launching a new product when profits are already being generated from an existing one. For instance, a car company might launch a new model even when they're profitable with an existing one. Similarly, a phone company or FMCG company might introduce a new line or product, increasing their revenue streams.

From the perspective of a stock trader, the market is closed on weekends, providing them with ample time to teach and earn additional income. This is similar to the trader earning an additional customer through their teaching, generating significant commissions from successful trades.

Client Base and Brokerage Firms

Traders often have a robust client base due to their deep understanding and successful trades. By conducting paid trainings and offering investment guidance, they can earn commissions from their students' trades, and these commissions can be much higher than what they could earn from individual trades.

Furthermore, by becoming a broker and joining a brokerage firm, traders can earn additional income from short-term equity investments. Given their existing client base, this can be a lucrative opportunity.

Besides, these traders also generate the need for more investments in the stock market. They become catalysts for others to learn about investing and trading, which leads to a larger client base. Many of these traders have ties with educational institutions, especially colleges, where they encourage students to explore the stock market, thus also generating a stream of new customers.

Conclusion

The decision to engage in paid trainings as a stock trader is not just about generating additional income, but also about providing valuable guidance and reducing the learning curve for new traders. While the resources for learning about technical analysis are available, the quality of the instructor, the practical experience, and the time-saving aspect make professional trainings a worthwhile investment.

Come and learn about investing and trading with Sharekhan Classroom, where you can gain free insights into the stock market. Enjoy your journey!