06 October 2020

Conspicuous Complexity


Trading developed many years ago as a way for civilized people to achieve higher utility through exchange. 

Complicated trading originated as a way for traders to not only show off their “brilliance” but to also possess a scarce, coveted ability.

Over time, as interest in trading has become more widespread (it's an extremely profitable undertaking if you can do it well)... a variation of the game is becoming more common: trading strategies and the services that teach them that are complicated, expensive… and no better than a coin flip. Actually, sometimes worse than a coin flip.

The sellers of these strategies hide behind the thinking that is, "If you need to ask to understand it, then you can’t do it. If you can’t do it, you should pay me to do it for you."

And so we have innumerable people that are spending far more money for dramatically inferior [though complicated] advice and guidance.

What's for sale isn't performance or profitability. Merely exclusive complexity.

They offer the customer the satisfaction of looking around at other traders in the community and saying, "yep, I'm here."

But it's a risky strategy, because sooner or later poor design, inappropriate risk management, and/or lousy execution communicates to the would be trader, "this just makes me broke and look stupid to boot."

And no one likes being broke while looking stupid.

No comments:

Post a Comment

My Most Popular Posts

Follow Me On YouTube

TAOST Topics

How To Trade Emotional Capital simple trading Bitcoin How It Works Simple Day Trading swing trading stalk candidate Daily Simple Trading Habit how to trade Bitcoin trade idea Process price action simple trading tools what to buy what to trade Best Retirement Investments Chart Patterns Focus New Trader Sins Swing Trade TAOST Trading principles TAOST market update day trading lifestyle keep it simple risk risk management support and resistance trading psychology trends Are you too old Confidence FAQ FASTQ How To Invest Income streams It takes as long as it takes MAR Retirement Crisis Retirement Investment Retirement Trading Trade Pattern compounding day in the life of a day trader how to day trade learn to trade performance improvement sell signal side hustle the power of simple trading rules trend persistence ultimate side hustle Buy Signal Coil Distraction How To Trade EUR How to trade SPCE Mistakes Oh S#!t Gap Oil Optimization Process Ownership Portfolio Trade Private Equity Professional Gap Retirement 911 Risk Arbitrage S&P 500 Sacrifice Shooting Star Trading & Poker Trading Components Trading Myths Value Why You're Only 1 Setup Away chaos theory context diversification downtrend extra money financial freedom how much money how to information is the stock market random kis linear regression channel lock limit down meditate money money management negative compounding optimize thinking pandemic position size quantum leap improvement random random market update risk management plan sector selloff simple day trading risk management stock broker trading intraday trading secrets training trend analysis