Page 451 - THE MARKET WHISPERER

THE MARKET WHISPERER 44 7

SMART Demo trading is important for practicing how to use the
MONEY trading platform, but using it for too long may cause the
novice trader to become overly confident.

After several classes in Tradenet’s course, and after studying and
practicing the principles of trading, 95% of my students were earning big
money on the demo! Profits of thousands of dollars on a single trading day

by students carefully keeping to the rules is not an unusual phenomenon. It
made them feel like richly-experienced old hands at trading. But naturally,
these profits made many of them dream of the “big money” they would

surely make upon completing the course, and that’s when phone calls

started from students who lack patience. They felt that time was slipping

by when they could be earning thousands of dollars, based on their paper
trading. They wanted to start playing the real market. They wanted instant
gratification with real money.

A student profiting at demo trading may think real time trading is the

same; the student may think trading with real stocks is easy. Let me warn
you: trading with real money is NOT like trading on the demo program.

They are two completely different worlds. Demo trading is Monopoly.

Now the arguments start: most of the students are certain I’m wrong

and that seriously bad situations will never happen to them. They have
strong self-discipline, they are sure they will stick to the rules even when
trading with real money. The more polite students smile and keep silent.

That smile indicates that they are right and they are sure I’m wrong, but
they are too well- mannered to say so. The brasher ones are not shy at
insisting I’ve made a mistake. The more I try to cool their enthusiasm, the

greater it becomes. It’s a battle with precisely foreseeable outcomes.

SMART Even if you’re a champion sharpshooter, it will be hard to
MONEY aim precisely when the enemy’s weapon is aimed at your
temples!

Why is demo trading unlike real life trading? After all, it’s the same

program, the same market, and the same trader using it. So where does the
difference lie? One of my students, a pro basketball player, described it in
these words, “I know players who get the most amazing hoops all through

training. The big question is what happens when they’re on the playing

field. Pressure, the shouting crowd, whether your salary check is going to

go through this month… all these influence the game. How many of them