If you’ve tried your hand at trading, you know it’s not as easy as it looks.
So, how do you find your great inner trader? Glad you asked, because I’m about to tell you.
THERE IS NO ONE BIG SECRET that will instantly give you the trading Midas touch. That secret does not exist. There is no perfect system for finding hot stock picks. The question is a red herring that has ruined more than a few traders.
Still with me?
I figured I’d lose most of my readers at this point, so congratulations that you’ve made it this far.
Remember the Wizard of Oz? My favorite scene is when Dorothy is quaking in her boots during her audience with the GREAT AND POWERFUL Wizard of Oz. Dorothy’s dog, Toto, then runs to an obscure corner of the great hall and pulls back the curtain, exposing a small, insecure middle aged man. He immediately gives himself away as being the puppet master behind the “great and powerful” Wizard of Oz. The supposed wizard turns out to be a collection of theatrical tricks.
It’s a great story because you can find a number of lessons in it. The way I like to look at it is that an insecure man had managed to control a large thriving city by creating a myth about a “Great and Powerful Oz. ” As long as everyone believed his charade, he had control over the whole domain.
Likewise, I see some otherwise very intelligent people searching for the one secret that will immediately transform them into omnipotent traders. As long as they believe such a secret exists, it will have sway over them. They really want to be the Great and Powerful Oz, but they’re probably just insecure humans.
Wow. Now I really did it. A few of you may wonder if I just called you insecure.
No, no, no, I don’t mean you! I mean everyone ELSE who is reading this, but NOT you.
And if you just missed what I said, never mind. You’ll get it when your self image will let you.
But fear not, I’m not going to waste your time. There IS a secret to being a great trader. It must be a secret, because so few discover it.
First of all, forget about being omnipotent and knowing every twist and turn of the market in advance. In fact, admitting that you can’t ever know enough about the market is a necessary step. And always taking the time to learn more is another.
Being a bit insecure in the market will save you from barging in where angels fear to tread. And in time, this insecurity will mellow into humility.
Then it comes down to surviving long enough to get enough experience. Some people say it takes hundreds of trades to get confident and develop a winning style. It took me thousands of trades.
But one day, it will sneak up on you. You’ll look back over the last few months and realize that you have a comfortable, profitable trading style.
Therein is the secret. You survived long enough until your hard earned success found you.
Serving customers in more than 70 countries, Doug Newberry enjoys his position as host of the “Market Toolbox On Demand" online radio show and editor of the “Market Toolbox Newsletter. " His company, Investing Systems Network, specializes in providing tools for finding hot stock picks and portfolio management software.