This is a common question that we get, so let's take some time to address it.
Why do successful traders teach others? Shouldn't they just trade and collect their millions?
Of course, the underlying question is:
If a trader is a teacher, then they are probably a scam…right?
First of all, continually looking for scams is one of the worst things that you can do for your trading.
Don't get me wrong, you should be careful.
But in order to get somewhere, sometimes you have to give people the benefit of the doubt. It is like when I wrote about why some successful traders don't publish their track records.
So in this post, I'm going to give you a few good reasons why successful traders teach. Most of the traders I interview have an education program of some kind.
I hope that this post will open your mind to the possibility that great traders can (and should) teach their skills.
Smooth Out Their Income
This is the big one, so pay attention.
Trading is a very mental game and nobody trades perfectly, all the time. That goes for even the best traders in the world.
If you read any of the books that I recommend, which feature trader biographies, this is very apparent. When you hit a rough patch, the best thing that any trader can do at that point is to take a break.
…and not all traders are trading billions of dollars. Some professionals are trading very modest six figure accounts.
When they take a break, they aren't making any money. So what can a professional trader do?
Get a part-time job at Starbucks?
Maybe. But that usually isn't worth anyone's time…especially a professional trader.
Why not put together a course or a chat room and diversify your income with a skill set that you already possess?
This also takes some of the pressure off their trading because they have another, more dependable, source of income. When this happens, most traders trade better because they are not forced to make trades to pay their bills.
So education can be a great way to keep doing what they love, while creating an additional income stream.
They Love Teaching
Some people just love to teach.
I have a friend who was a middle school teacher after he graduated from college. Although he loved to teach people, he hated working for others and was also frustrated with trying to teach students who didn't want to learn.
So he created his own education business and teaches people functional fitness. He still gets to teach people, but he gets paid way more money to do it, he is the boss and he only works with people who are interested in learning.
This can be the same in trading. Some people enjoy teaching and are good at it.
Does it really matter if they happen to be good at other things too?
Consider championship coaches who were also championship players. Does anyone say that they shouldn't be a coach because they were such a good player?
No way, that usually makes them a better coaching candidate.
It Makes Them Better Traders
From what I've seen, this usually isn't a primary motivation for getting started as a trading coach, but it is a nice byproduct. Many professional trader/educators that I have talked to say that most of the time, teaching helps them see their own trading more clearly.
Studies have shown that “The Protégé Effect” does help teachers become better at what they are teaching. Even if you aren't a professional trader, teaching what you know can help you improve your skills.
Students can help point out your shortcomings and help you identify trading setups when you might be a little distracted. Both are excellent benefits of being an educator.
So many professional traders get into education for the money, but they usually stay because it helps them trade better.
They Want to Make a Dent in the Universe
Then, there can be a humanitarian aspect to trading education. You are teaching people a skill that can help them live a very comfortable life, for the rest of their years.
Any way you slice it, that's pretty damn cool. Can you get that same feeling from being a bank manager? How about a bartender?
Sure, there's nothing wrong with having some skills and making a living.
But when you have the opportunity to change the world (no matter how small) that is something worth getting up in the morning for.
Final Thoughts on Why Do Successful Traders Teach?
Yes, as the saying goes:
Those who can't, teach.
…and that can be true, to a certain extent. But that doesn't automatically make the opposite true.
So before you write off a trading educator as a hack trader, who isn't worth learning from, remember that your assumptions could be totally wrong. There are perfectly good reasons why someone who is good at trading might want to start an education business.
If you are a professional trader and want to start teaching, but don't want to deal with all of the hassle of setting up your own website, social media, email list and all the stuff that is required in today's marketing world, then Trading Heroes can help.
Contact us and find out how you can launch your own education brand on Trading Heroes, leveraging our existing technology and online presence. You stick to what you do best, teaching and collecting checks 🙂
Are there any other reasons that you can think of that successful traders teach? Leave a comment below and let us know!