How much does education cost?
In this video:
00:30 The Costs of Providing Learning
02:05 Why People Don’t Invest in Forex Education
03:55 The Amazing Benefits of Trading
How much does it cost to learn a new skill like trading? Let's talk about that and more right now.
Hi Forex traders it's Andrew Mitchem here, the Forex Trading Coach, and today is Friday, the 31st of July. In this video and podcast I wanted to have a talk and a bit of a chat about the cost of learning a new skill, and in particular, Forex trading.
The Costs of Providing Learning
What's it cost you in terms of time and money, and what can you get out of it?
What I've done is a bit of research into comparing it with other courses out there. Let's have a look at in New Zealand here, which is generally quite a cheap place for education. I've done a bit of a Google search and I've seen that it's somewhere between about 5 and 10,000 US dollars is what it will cost you for tuition fees if you went to university, plus of course you've got your living expenses on top of that.
I then went and had a look at what it would cost you in the UK. It's somewhere, depending on the cost, between about 20 and 50,000 US dollars per year for a university course, plus at an average of around $18,000 per year for living expenses. I then went and had a look at what it would cost in the US, and it's somewhere between about 30 and 40,000 US dollars per year for your tuition fees and your living expenses. You can see there's quite a common theme there.
Now as you know if you've been following me recently, over the past year and a half I've been learning to fly a helicopter and I passed my private license back in March. That still cost me in learning and tuition fees, etc., around 26,000 US dollars to learn that skill. When you think about all the university skills is when you come out of that … don't forget that's per year … when you come out of that you then still have to go and get a job and earn a salary, probably with a huge amount of debt.
Why People Don’t Invest in Forex Education
As I look at that and I think, well, why is it that people don't invest in their Forex education?
What is the reason?
Do people just think that they can go out there and Google research and find how to trade themselves?
That could be possible, and people can be self-taught. That's exactly how I learnt to trade myself, but it does take such a long time and a lot of trial and error. For me it took four years, and by that stage most people give up.
When you look at something that's maybe going to cost you a couple thousand dollars, and it's going to help you shortcut that, that time and that headache of learning, plus the money that you're likely to lose while you're learning, it to me just seems a complete no brainer why people don't consider that a good investment in themselves in terms of monetary investment and time investment. Also don't forget that once you can make money through trading, it's a skill that you have, it's something that you can pass on to other people. Plus it's something of course you can use it as a passive income to start with, and eventually some people can go on and earn their entire income from trading.
When you look at the actual investment in that in terms of education, the cost of buying a good course, it's absolutely such a small amount to pay for what the enormous gains can be. I just wanted to run that by you, when you compare a good Forex course with good university education. Of course the actual ongoing costs of learning to trade in terms of a computer and internet connection are tiny compared with going out to work every day for someone and being forced onto a salary because that's what they say you should be on. I just wanted to run that by you and just give you that comparison.
The Amazing Benefits of Trading
The other thing I wanted to talk about is I've received an email here from my bank telling me that my interest rate on my … this is an online bank account that I … never go to a branch. I don't have any things like checkbooks even though they're a thing of the past. I don't do anything with this account in terms of … very few withdrawals and it's purely internet-based. My current rate of interest has gone from 3% to 2.75% because of the interest rate drop out of New Zealand last week. 2.75% per year as an interest rate, when compared with most other banks around other countries around the world, that's probably quite good for some of you. For here in New Zealand, that's not very good. 2.75% is pretty average. You're not going to make a lot out of that, are you?
Again, when you think about that, some people can make that through Forex trading on just one trade. If you said you're looking at making 1 to 2% on average per week, after two weeks of trading with good trading and money management, and understanding of the what you're doing, you can make more in two weeks as an average than that bank is going to pay me in one year. When you put all these things together and you see that amazing returns can be made from trading, the amazing benefits of trading, working from home, etc., low cost, just goes to show that a little bit of money up front put into your own education can go a long, long way.
If you'd like to know more, don't forget to jump onto one of my free webinars that I hold each week. One webinar is designed for new traders. The other webinar is designed for more experienced and lightly frustrated traders. Jump onto one of those two if you've not been on one of those already in the past.
Have yourself a great week. It's been a fantastic week for trading. Charts have just been really favorable for trading this past week. Clients are just telling me they're making some great returns. I had a client just this morning emailed me and say, “Hey Andrew, I made over 5% this week.” That's excellent news.
Have a great week and look forward to talking to you this time next week. This is Andrew Mitchem, The Forex Trading Coach.