Every week I visit the local book store to check out what may be new. The answer is yes, I am a bibliophile. It is not uncommon for my current reading list to be stacked on my nightstand, in my office, and on the coffee table at the same time. My children ask me how I read 6 books at one time. A legitimate question I suppose. My answer: one chapter at a time. It is no wonder it can take me three months to read a 200 page book and one year to read 600, but at least I can finish several at one time! I am sure there are many of you our there who are just like me. I can’t be the only one.
I do not read stock trading books per se. If I do read a trading book I will read the chapters on psychology and skip the technique. Already been there, already done it. I am happy where I am. I do, however, get a kick out of reading the ads in the back of trading magazines and the back of financial newspapers. You know the ones I am talking about. The headlines are much like the following:
DISCOVER A SECRET STRATEGY: TURN $1000 INTO $1.4 M. IN 13 MONTHS(WITH PENNY STOCKS!)
MAKE $400 A DAY TRADING OPTIONS!
I CAN MAKE YOU FILTHY RICH IN 12 MONTHS OR LESS!
HOW TO TURN $2000 INTO $1.7 MILLION IN 1.9 YEARS!
SIX STEP HOLY GRAIL FORMULA!
RETIRE RICH DISCOVERING THE SECRET WALL STREET DOES NOT
WANT YOU TO KNOW ABOUT!
HOW I MADE $22000 IN LESS THAN ONE MONTH!
HOW TO MAKE $175000 IN PROFITS THIS YEAR!
POCKET $11,000,000 IN PROFITS IN ONE YEAR JUST LIKE WE DID!
OUR LAST TRADE EXPLODED 2500%
Talk about setting someone up for failure! Just this past weekend the following headline caught my eye:
“How to Win 96% of the Time and Lose Nothing If You’re Absolutely 100% Wrong”
This system may indeed be a wonderful opportunity. I do not know. What bothers me is the false expectation it creates. For new traders this can be devastating, especially if the new trader is completely ignorant or has just come off a string of losing trades.
Belief in a system hides an even bigger distorted belief: that the market is ready to give you all the money you could ever imagine. This could not be farther from reality. For you see, the truth is that the market is in the business of taking money away from the ignorant and giving it to the ones who are not. The market moves up and down and sideways not because it wants to but because it has to. There are buyers and there are sellers and there are those on the sidelines waiting to mess up the plans of the buyers and the sellers.
I have said it many times here and I will say it again: the only way you will ever master the market is to master yourself. In so doing you will not fall victim to false expectations; your trading will not be ego driven (so you can brag); your emotions will not get the better of you; and your need to understand will not get in the way of your need to plan.
What should really get your attention?
A Trader Makes a Good Living Through Hard Work, Discipline, and Patience.
But, then again, who has the time to read the story behind this headline?
