Trade Like an O'Neil Disciple: How We Made 18,000% in the Stock Market

4.4. CONCLUSION

As one can see, many pitfalls await even the most experienced traders. Here are some suggestions on how one can keep evolving as a trader:

• Always keep reading and learning. By 1999, I had read over 200 books on the stock market, having read my first book on investing at age 13. Reading new books even when you think you have learned it all reinforces what you already know and may even give you new ideas on how to optimize your trading strategy. Reread excellent books. Over the years, we have read books such as Reminiscences of a Stock Operator, William J. O'Neil's How to Make Money in Stocks, and Jack Schwager's two books, Market Wizards and New Market Wizards, multiple times. Any time a book is read again after one has gained new experiences, the book takes on deeper meaning.

• Feel and embrace the pain of the loss caused by the mistake. Ed Seykota's trading tribe technique, which can be learned at www.tradingtribe.com, is one of the most effective ways to stay on track as a trader. Eckhart Tolle's philosophy of embracing and accepting the pain of loss is equivalent and enormously effective. Both of these techniques will be discussed in Chapter 10.

• Keep an active trading diary that will highlight your mistakes. The act of writing down your mistakes creates a neural trace in your mind that underscores the mistake so you are less likely to repeat it.

• Annotate charts showing your buy and sell points. Carry these charts with you so you drill into your mind proper and improper ...