Page 426 - THE MARKET WHISPERER

422 PART 11 - Risk Management

execute. I can assure you that as the conclusions become clear, you will be
amazed to find that you make only a few types of mistakes. Once you’ve
identified those that are typical for you, you’re on your way to neutralizing
them!

Putting It All Together
Now you need to set goals. Don’t try to make that goal eradicating more

than two mistakes simultaneously. If you discover that you tend to make the
same five mistakes, choose two and declare that over the coming ten days
of trading, which is two business weeks, you will make sure not to repeat
them. For example: you see that you tend to exit a stock before it reaches
your pre-set target. Decide that unequivocally and without compromise,
you will not exit even one cent below your target. Enter a sell order at
your target price, and avoid changing it. You need to hit the target with a
bull’s eye. You have to resolve that for the coming ten trading days, you are
going to place a huge X over the two mistakes you’ve marked. Ignore all
bothersome information, and mainly ignore the profit/loss concerns. Stop
counting your money while you trade (one of THE most common mistakes!)
and start focusing on trading correctly while remaining in control. I do not
wish to imply this is easy work, but it is definitely achievable. I was there
too. I applied these tactics, as did many of my students. Without exception,
I’ve always been told later how great this method is.

Keeping an activities diary works. Fact.