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Chapter 12
Step Three
Understanding Price Movements and Charting |
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The first and most important step toward success is the feeling that we can succeed.
NELSON BOSWELL |
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Over the years, the authors collectively have trained hundreds of professional traders. In most cases, a pattern emerges: |
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Stage One is the "cocky" stage, generally used to hide a deeply felt feeling of inadequacy. It is accompanied by a strong reliance on native intelligence and quick reactions to get into trades and to escape when it was time to get out of trades. |
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Stage Two is the "humble" stage, when reality sets in and the new trader realizes that natural gifts are not enough. The trader accepts that skills must be learned to succeed. |
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Stage Three is the "eureka" stage, when the pieces come together. The trader realizes that success in trading really is both simple and achievable. This is when the trader finally "gets it." |
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More times than not, the eureka stage occurs when this new trader begins to really understand how to read and use charts. |
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