There is a wide range of possible explanations for why an experienced trader would want to help out a beginner. It could be out of good-nature or for selfish gain.
Below is a list of 4 of the most common reasons successful traders educate others:
Some teachers just want to acquire and overcharge naive students for information that could be found in a book or on YouTube. Many beginners fall right into this trap.
Also, a paid instructor may not be as profitable as they appear, as a successful trader would make much more money from the market than teaching. Do your research beforehand to see if their services are both reliable and worthwhile.
Teaching a subject is one of the best ways to embed it into your mind. It leads you to research and learn more in order to provide students with all the necessary information.
Also, teaching may force you to respond to questions that challenge your own assumptions.
So, a successful trader might help others as a means to advance their own competencies. Extra research and fielding challenging questions would help anyone learn more about trading.
The benefits from teaching could help a veteran trader yield higher returns and experience a greater degree of success in the market.
Traders who have enjoyed lucrative returns over the years understand that they can offer real, effective insight that beginners cannot get anywhere else.
Some of these selfless savants provide their services at no cost to help others learn from their accomplishments and mistakes.
They also might have gotten help when they were starting out and feel obliged to return the favor.
Trading can be a lonely profession, as you are likely working from your house or apartment with nobody around.
So, many traders try to connect with beginners for social value. They’ll add a novice to their network by offering advice, in hopes of gaining a companion they can share trading ideas and time with in the future.
Before taking advice from a trader, be sure to investigate their intentions. See if they actually care about others’ success or just plan on spewing widely known information for profit.