Page 468 - THE MARKET WHISPERER

464 PART 14 - The Demons Are Coming!

hate to lose more than almost everyone else I know. Novice traders who
find themselves in my state would usually opt out during their first year
of trading. Not me. I succeeded because I am stubborn to the extreme. I
had set myself a goal and knew I had to reach that level of other successful
traders. My stubborn character made up for my other deficiencies, and
over the years, I learned to uphold the criteria for two of the three tests.
As my finances improved, I passed the scared money test; as my trading
capabilities improved, I learned to take losses with a smile. As for self-
discipline…I’m still working on that.

Take Maximum Advantage of Your Tuition Fees

Losses are part and parcel of the market’s “tuition fees.” Few traders are
able to sustain themselves within just months of starting to trade. Most
lose money as novices. Keep this in mind before you start trading. Why do
I expect you to lose? Because trading with real money is unlike anything
you are familiar with, and because despite all my warnings, you will make
every mistake possible on your way to success. Reading the book, taking
the course, and participating in the online trading room are all important,
useful elements that reduce the period of losses and the amounts you will
lose. Never trade without knowledge or practice, but these are not enough
for success. To earn real money consistently, you must accrue real life
“screen time,” invest effort, and be determined. There is no profession in
the world that can be learned and attained within just a few months.

Losses are not the aftereffect of trading, but an inseparable part of
trading. Becoming a winning trader rather than a losing trader, you need
to learn from every loss. Wring every bit of advantage possible from the
“tuition fees” you “pay” to the market. Analyze every failed trade: its entry
and exit points, the reason for entering, the reason for the loss and so on,
as explained in the section on keeping a trading diary. I highly recommend
printing out the stock’s chart and analyzing it. Once a week, go over the
data you have accumulated and try to understand the reasons for your
mistakes. Very quickly you will learn enough to avoid repeating them.
Leverage each loss and turn that knowledge into a gain.

Succeeding…the Wrong Way
One of the worst things that can happen to a trader is to succeed… the wrong
way. For example, executing a trade against the trend which produces
a handsome profit. The sweet taste of profit leaves a strong memory in