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THE MARKET WHISPERER 47 3

loss. Statistically, if you’re operating correctly, you should succeed in
more than 50% of your trades. Every trade is an independent entity
having no relationship to the outcomes of any earlier trade.

5. I’m not taking partials. I buy and sell one stock, once.
Maintaining correct money management will help you succeed. If
you take a partial on a winning stock, you will build up a good “profit
cushion” which will allow you to take better care of the remaining
quantity of shares. Yes, this is no more than a psychological solution
meant to assist in overcoming the need to sell when the stock is still
doing well, but remember: correct money management will avoid
arousing those dormant demons buried deep within us all.

6. I’m bored. I’ve got to buy something!
No day is like any other. Some days, the market is “heavy.” Bored? Go
out and enjoy the day away from your trading rig. The disease known
as “overtrading” is a tough one, and sometimes it’s hard to prescribe
medication for it. Some of the best traders around felt desperately ill
with this disease when they were novices, and some traders fall so ill
that they end up losing their trading account. The psychological urge
and need to click that button, no matter what, brings many a good
trader down. By the way, the disease has a unique name: “Clickitis.”

7. I should have done that differently.
Easy to be smart in hindsight. Everything looks simple. Trust your
instincts, trust your knowledge, and take the right actions in real time.
Then have no regrets. Every loss is a learning curve. The way to success
is paved with learning curves.

8. I’ll average down just this once!
Let me remind you that a trader who thinks this way is already in a losing
streak and has increased the quantity of shares to “average down” the
loss. The trader hopes that the price will correct to trending up, allowing
an exit with no gain but at least no loss. The only thing I can say about
this method is “ha, ha, ha.” To anyone who tells me it worked once and
therefore it’s worth repeating, let me add one more “ha.”

9. I invest only for the long term.
Long-term investment proved its effectiveness over the years, but is