Page 34 - THE MARKET WHISPERER

THE MARKET WHISPERER 33

Having trained thousands of traders, I know just what tools you’ll need
to conquer the market. I know where to direct your focus, and what to
warn you about.

This is a practical and professional book written by an experienced
trader who trades daily with his own money.

This is the first, and last, book you’ll ever need in order to succeed in
day trading.

Who’s Afraid of Being Independent?

Stock trading is an independent business. When you trade in stocks, you’re
exposed to financial risk, as in any business. A salaried employee who fails
will never return his salary to his employer, even if the employer incurred
a loss. At the most, the salaried employee will be fired. A self-employed
person will pay for every error with his or her own money. By contrast, a
self-employed person who is successful will earn far more than the wildest
dreams of the average salaried employee.

Do you have it in you to be self-employed? Are you prepared to work
without a salary and risk your money? Are you psychologically ready for
the risk? I encounter all kinds of students. Sometimes a new student will
ask, “Meir, I understand I won’t earn big money at the outset, but can I
be sure that within the first few months I’ll earn at least as much as an
average salary?” Oops! An employee-based question. A self-employed
person would never ask such a thing. Being salaried is not bad, but to be
independent, you need to be made of something tougher. A self-employed
trader can work less, enjoy more, and profit ten times higher than a salaried
employee, but must be willing to take the risk. Be warned: without the
willingness to risk your money, you’ll get nowhere in trading.

Let’s now assume you’re ready to take the risk and are determined to
become independent. You can still have alternative business interests other
than stock trading. At this point, we need to draw up some comparisons:

Commitment. Most businesses require a brick and mortar office, usually
rented. Rent is a long-term commitment: rent payments, management fees,
municipal taxes, electricity, water, maintenance and more. By contrast,
a stock trader works from home. Your current expenditure might grow
slightly, but there are no long-term commitments.

Responsibility. A business requires employees, consultants, an
accounting staff, legal counsel….a great big headache and heavy