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Profitable Day and Swing Trading: Using Price / Volume Surges and Pattern Recognition to Catch Big Moves in the Stock Market, + Website by Harry Boxer

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CHAPTER 17

38 Steps to Becoming a Successful Trader

Most traders will identify with this list and should be able to place themselves within these steps. Keep in mind that few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process. For example, you may reach step 13 and find that, although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase). You may drop back to step 4 and start “climbing” the steps again. Having the proper mind-set, attitude, and psychological makeup becomes increasingly important as you progress through the steps. The focus of the earlier steps is on external issues (i.e., developing proficiency in the mechanics of trading), while the focus of the latter steps is on internal issues (i.e., improving ourselves mentally and psychologically, maturing as traders).

1. We accumulate information—buying books, going to seminars, and researching.
2. We begin to trade with our “new” knowledge.
3. We consistently “donate” and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our “updated” knowledge.
7. We get “beat up” again and begin to lose some of our confidence. Fear starts setting in.
8. We ...

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