The Reality of the Awakening

Fortunately, Bill woke up from his nightmare and began to ask himself

some profound questions. Realizing that the problem was one of

his own creation, he took responsibility for his dilemma. Bill began

to seek the answers he needed, which ultimately led him to tradingschool.

com. After 1 spoke with him, it became obvious that Bill

had fallen into the "traders trap." The following is the essence of our

conversation, which in turn led Bill to escape from the trap he had

created for himself.

We go to school, gain an education, become employed, or start

our own business. We learn what we need to know to be successful,

but nothing in our education or work experience provides the comprehensive

knowledge or psychological control necessary for success

as a trader. Bill was intelligent, he owned his own business, and

he was successful. He had the money he needed to begin his dream

and some experience in the stock market. Bill was the very definition

of a winner, so why had he lost 63.89 percent of his capital in

four months?

Unfortunately, it's human nature to assume that if we succeed

in one area we will automatically succeed in another. The drive and

determination that helped you succeed becomes the little voice in

your head that says, "Trading and the concepts behind it seem simple

enough to me. This can't be as difficult as starting and developing

my own business. After that experience, 1 can do anything."

Unfortunately, most people who enter the market with the idea of

becoming traders have a feeling of invincibility, superiority, and no

clue of what they are about to experience.

Bill had a college education and years of experience in the

printing business before he started his own business. Even with his

education and experience, Bill told me that it had been difficult, but he prevailed and became successful. With this information as background,

I asked Bill a few questions. Put yourself in Bill's place and

answer the following questions:

1. Would you buy a business if you had no idea what the cash

flow would be?

2. Would you buy a business if you had little actual experience

or training compared to your competition?

3. Would you buy a business if your competition were well

capitalized and you had limited operating capital?

4. Last, but certainly not least, would you buy a business

without a business plan?

If you are saying, "Not a chance," guess again. That is exactly what

you are doing when you start trading for the first time. You must

prepare yourself and realize that as a short-term trader you are up

against the best traders in the world.

Training, experience, psychological control, and a realization

that you are not invincible or smarter than the market will lead to

success. Each morning before you begin to trade, say the following:

"My name is (your name). I can and may lose money today, but if I

trade the plan and follow the rules I will be a winner." I repeat this

little saying every morning before beginning to trade. It accomplishes

two things. First, it is humbling to acknowledge that the

market is all powerful and can take money from you at any time.

Nothing will cause you to lose money faster than a big ego or trying

to exact revenge on the market. If you are trying to prove you are

right all the time, you are going to lose. When you do lose, are you

going to get even with the market by showing it who's boss in the

next trade? Thirty minutes later you have four consecutive losses

and you are still blaming the market. Another trap is trying to set a

dollar amount per month or per year that you want to earn from the

market. Some use a percentage—for example, they may want to

earn a return of 20 percent a month. Most novice traders look at

trading as an escape from a job they hate, and they know they have

to make X amount of money to pay the bills. You don't need the added pressure of a monetary figure hanging over your head. This

can become a psychological guillotine. If you don't meet your goal,

you will push your trading beyond your skill, and the result will be

a series of losses. Losing emotional control will result in large, uncontrolled

losses. If you follow your trading plan, success should be

the result. By focusing on your trading plan, emotion, ego, and making

money are no longer an issue. If you follow your trading plan,

you are a winner regardless of the monetary outcome. Knowing

yourself and adopting the right mind-set, trading strategy, and

methodology before you start trading will enable you to avoid the

traders trap and begin living the dream.

Fortunately, Bill woke up from his nightmare and began to ask himself

some profound questions. Realizing that the problem was one of

his own creation, he took responsibility for his dilemma. Bill began

to seek the answers he needed, which ultimately led him to tradingschool.

com. After 1 spoke with him, it became obvious that Bill

had fallen into the "traders trap." The following is the essence of our

conversation, which in turn led Bill to escape from the trap he had

created for himself.

We go to school, gain an education, become employed, or start

our own business. We learn what we need to know to be successful,

but nothing in our education or work experience provides the comprehensive

knowledge or psychological control necessary for success

as a trader. Bill was intelligent, he owned his own business, and

he was successful. He had the money he needed to begin his dream

and some experience in the stock market. Bill was the very definition

of a winner, so why had he lost 63.89 percent of his capital in

four months?

Unfortunately, it's human nature to assume that if we succeed

in one area we will automatically succeed in another. The drive and

determination that helped you succeed becomes the little voice in

your head that says, "Trading and the concepts behind it seem simple

enough to me. This can't be as difficult as starting and developing

my own business. After that experience, 1 can do anything."

Unfortunately, most people who enter the market with the idea of

becoming traders have a feeling of invincibility, superiority, and no

clue of what they are about to experience.

Bill had a college education and years of experience in the

printing business before he started his own business. Even with his

education and experience, Bill told me that it had been difficult, but he prevailed and became successful. With this information as background,

I asked Bill a few questions. Put yourself in Bill's place and

answer the following questions:

1. Would you buy a business if you had no idea what the cash

flow would be?

2. Would you buy a business if you had little actual experience

or training compared to your competition?

3. Would you buy a business if your competition were well

capitalized and you had limited operating capital?

4. Last, but certainly not least, would you buy a business

without a business plan?

If you are saying, "Not a chance," guess again. That is exactly what

you are doing when you start trading for the first time. You must

prepare yourself and realize that as a short-term trader you are up

against the best traders in the world.

Training, experience, psychological control, and a realization

that you are not invincible or smarter than the market will lead to

success. Each morning before you begin to trade, say the following:

"My name is (your name). I can and may lose money today, but if I

trade the plan and follow the rules I will be a winner." I repeat this

little saying every morning before beginning to trade. It accomplishes

two things. First, it is humbling to acknowledge that the

market is all powerful and can take money from you at any time.

Nothing will cause you to lose money faster than a big ego or trying

to exact revenge on the market. If you are trying to prove you are

right all the time, you are going to lose. When you do lose, are you

going to get even with the market by showing it who's boss in the

next trade? Thirty minutes later you have four consecutive losses

and you are still blaming the market. Another trap is trying to set a

dollar amount per month or per year that you want to earn from the

market. Some use a percentage—for example, they may want to

earn a return of 20 percent a month. Most novice traders look at

trading as an escape from a job they hate, and they know they have

to make X amount of money to pay the bills. You don't need the added pressure of a monetary figure hanging over your head. This

can become a psychological guillotine. If you don't meet your goal,

you will push your trading beyond your skill, and the result will be

a series of losses. Losing emotional control will result in large, uncontrolled

losses. If you follow your trading plan, success should be

the result. By focusing on your trading plan, emotion, ego, and making

money are no longer an issue. If you follow your trading plan,

you are a winner regardless of the monetary outcome. Knowing

yourself and adopting the right mind-set, trading strategy, and

methodology before you start trading will enable you to avoid the

traders trap and begin living the dream.