Page 65 - THE MARKET WHISPERER

THE MARKET WHISPERER 63

Stage by Stage on the Road
to Fame

Are You Disciplined?

This is the stage where you need to maintain self-discipline. The rules of
stock trading are simple, but because of our personality quirks, everyone
still tends to behave differently. The average person’s psychological
behavior does not match the behavior of the market. Greed, on one hand,
and fear on the other cause us to react in precisely the opposite manner
than is required. From now on, you’ll need to accept and respect these
rules undisputedly.

Eight Stages on Your Path to Success

1. Don’t read too much instructional material. This book will be all you
need. Information-overload will take you out of focus and confuse
you. After some months of trading, once you’ve gained experience and
internalized the basic principles, then read more.

2. Find an experienced personal mentor who can walk you through your
initial steps, or join a course. Self-study is not a sufficient solution. Just
as driving can’t be learned only by reading a textbook, so it is with
trading.

3. Before trading with real money, ask your broker for a demo system
that will let you practice. Be diligent about using the demo for no more
than a few days. Using it for longer creates the dangerous illusion that
you’re immune to any kind of psychological effects resulting from the
pressures of trading in real money. Believe me, you’re far from immune!

4. Open an account with a broker and deposit a sum suited to your financial
abilities. You should absolutely not deposit a sum of money that will
endanger your financial status. A too-large amount will cause you