Hi guys, hi from Andrea Unger! Today, I’ll talk about talent in trading. Can it be useful to systematic traders who do that as a profession, or is education better?

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Listen to “Education vs Talent” on Spreaker.


The first times I told people I am a trader, most of them would say, “Wow, you must have talent in trading, you can guess what happens in the stock markets!”

Actually, I couldn’ot do that, but this was their mindset. They were convinced that I was gifted and could understand what would happen next or that I could identify which stocks were supposed to boost up.

Is Talent in Trading Essential?

Talent is just one possible trading approach. However, it is very different from the systematic approach that I apply and that can be applied by many people, I don’t say everyone, but many of them.

The point is that systematic or automated trading, which is what I do, rests upon an approach that is very different from the one that rests upon talent in trading. Actually, they are worlds apart.

In automated trading, you build something that is supposed to work every day. You don’t need to sit there every day, because systems do that for you, but it is something that goes on day after day and builds your future if you do it properly.

On the other hand, gifted traders look for new businesses that are quoted on the market (think of the first stocks of Facebook, Tesla, Uber or whatever) and buy stocks only when they believe those businesses will grow a lot. So, they wait for great opportunities and grasp them when they arise.

Talented Trading Takes Patience and Time

Of course, it is amusing to think we are so talented that we can discover what new stocks will be the next killer in the market. The problem is that if trading is your job, you need such opportunities every day, in order to earn your living.

However, they unfortunately happen only from time to time. So, you need to wait, be patient, study and be gifted with the talent to understand what could work or not.

I mentioned Facebook, Tesla and Uber, because these are all very popular businesses. However, a great name is not everything that it takes. There are other things that need to be taken into account, and good talented traders should be able to understand which stocks are worth investing in independently from the reputation of businesses.

Some people asked me some pieces of information about biomedical companies (IPOs), thinking that they’ll discover the next special medicine. I think there was something about this in the second Wall Street movie. I think all this stuff is very fascinating, yet it is completely different from what I do and what I suppose you, dear reader, could do.

What about Systematic Trading?

Systematic trading puts talent aside. Through study you can put all the bricks together and build your “cathedral”. In automated trading you don’t need a special talent to understand what could come next. You just need to study seriously, be disciplined in your studies, have passion about what you do and work hard to put things together.

This doesn’t obviously mean that you’ll succeed. Trading is difficult. It is hard and takes many other things. Nonetheless, study is a good starting point for anyone who wants to become a trader. Talent, instead, is something special that only a very few people have.

Living on talent and identifying the right opportunities is very difficult. There may be just three or four great opportunities in a year, and this is a quite optimistic perspective. You must discover which opportunities are good, otherwise not only you won’t make any money, but you’ll lose it. You see this approach is completely different from systematic trading and is also hardly applicable by everyone.

If you are already good at that and have done it successfully, perfect, keep it up! Also, if you have some good tips, please send me an e-mail. We’ll be more than happy to follow your suggestions!

Education Is More Effective Than Talent in Trading

If instead you want to learn to trade, forget about talent. Study and build your knowledge. If possible, adopt an automated trading approach. It needs less talent, and if you are willing to work hard, you’ll have more chances to build what it takes to become a successful trader.

That’s it. Write your comments below if you wish to. I’ll be more than happy to answer!

In the meantime, ciao from Andrea Unger!

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Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years. I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again. Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets. Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.