The Greatest Lesson In Life.
by: Charles Cornley
I was often asked whether being a good trader requires an extensive educational background just to be consistently profitable. A degree in finance,economics,accountancy or relative courses in business? Well the truth was,having a degree doesnt necessarily translate to success. Ofcourse having the knowledge is an advantage but executing and applying what youve learned from school into real life is really what makes it count.
I still remember the Nursing Bubble wayback on the late 90’s. A surged of fresh high school grads swoop into the latest craze at that time. Everyone of them wanted to be a nurse. So everybody wanted to be a nurse. To help the less fortunate and serve the poorest? To provide adequate medical attention to the patients? No! They wanted to be a nurse because they were lured onto greener asteur. That western nations is in need of medical practitioners in the future and promised a very competetive salary. So every child,even without passion either a talent to be a nurse suddenly wants to be a nurse. Not on its noble essence buts purely on the promise salary and eventually a US or British citizenship.
Ive seen a lot of mediocre professionals in every field. A boring teacher with no sense of bringing the class into life,a failed business ad grad etc. Even a diploma wont secure you in a failure and going broke. Thats a fact. Not everything can be simulated inside the classroom. Not everybody is equal. Some are more brilliant than the other but ofcourse everyone has its own brilliance and talents that is need to be hone.
So lets go back to trading,Having a good grasp on economics and finance is a plus but trading the entire market with the knowledge either an MB in Finance or a PHD in Economics will not guarantee a success. Even the best investment professionals with a degree failed to save their own institutions from failing. Lehman Brothers,Bear Sterns failed to reccuperate and luckily Goldman Sachs,JP Morgan,Citi Corp and AIG were only bailed out by the US govt.
There are a lot of successful traders who havent got a college diplomas. Even some futures traders inside the CME pit,most of them have no educational background whatsoever. So how did they manage to enter the financial world and embattled themselves against the professionals?
When everytime a person asked about my credentials whether if im qualified to discuss trading. Perhaps theyre expecting me to show my Doctorate in Economics or my MB in Finance or any other Post Grad Certification. Im just showing them my resume. Most of them were astounded on how could I possibly know these things in trading. The truth was,i can fake my credentials if I wanted too and no one would see whether its fake or not. But I chose not to because I wanted to attest the fact that trading requires no college diplomas neither masteral or doctoral levels in order to be successful.
There are valuable lessons that arent been taught in school. Most of them are life changing lessons. Aside from experience,which is merely impossible to simulate other than to be shared and will serve as a lesson to replicate. These are the things that matters most in trading.
1. Your success is not dependent on your Educational Background but your action. As Lorraine Siador always says. Walk The Talk. Imagine a millionaire junkshop owner or a millionaire siomai vendor. These are true stories of success. These people has no college background whatsoever but their action has catapulted them to be successful later on.
2. Your grades and educational accomplishments will and should not define your future neither your school whether its known to be the school of the rich bastards. Companies may glad to have a summa cumlaude employee or someone from Ateneo or UST. The stigma of these filipino cultures of addiction on educational accolades is the main root cause of employment discrimination. Someone from UP may be deemed as a genius but ended being a communist bastard ; destroying his entire life.
Not all college grads are worthy to their diploma. Its just they have the money to pay for their education. Sounds harsh? thats reality.
3. You strived to have these educational attainment but still you ended working for a company. Filipinos goes to school to enslave themselves under a boss. A full pledge employee will never be rich unless you embrace corruption. Your income will be totally dependent on the average hours you work. That means your salary will equate to your productivity. So if you want to earn more. You have to render more time to work which is not a good idea because eventually,wear and tear will burn you out.
4. You will be underpaid despite being a license professional. It goes within the law of supply and demand darling. If there are abundant supply of nurses. Even they are professionals. Why would someone be willing to pay a premium?
So what really it takes to be successful?
Warren Buffett and Bill Gates will agree on this one. I ate trading during breakfast and I ate it til midnight and I even carry it to my dreams. The point here is. Focus will let you absorb anything and it will be easy to learn anything when you dedicate your time and effort on it. Eventually your effort will be paid off.
Passion is the fuel and makes you keep going. Whenever youre passionate on something. It will be very enthusiastic to study it. The jargons of the market will be clear if youll add up passion along with your focus.
Conviction. Walk your talk. After those theories. You have to apply everything that you have learned. This negate the gap between a college grad against a person without a diploma. This goes with the brilliance and talent you have. Schools can only teach you to sharpen your skills. Whether having a growth or fixed mindset would help. But there are things that you cant learn from schools. Being a street smart is almost impossible to teach. Eventually,whether youre educated or not. Youll be judged on the outcome of your acts. Whether youd have used your diploma on your gains or its just a silly toilet paper on your closet.
But dont get me wrong,if you have the oppurtunity to take a shot in college. Dont waste it. But dont think it as an instant gateway for success. Its just a tool for your dream. Because diploma is just a shit of paper if youre unable to apply your learnings into real life.
The bottomline here is,you can be successful with or without a diploma. The same thing in trading. Education comes in the real world. If youll be able to learn from your every mistakes and mishaps. Youre learning the very essence of life. Schools onlyvteaches a fraction of that education. Real learnings comes from real life experience. You can learn trading in books or inside a university but its merely impossible to replicate the actual market volatility on a book. Thats something you need to personally experience hand in hand.
Cheer up,its possible to be rich even without a degree.