Trading on Target: How to Cultivate a Winner's State of Mind

THE RITES OF PASSAGE

Just as Richard failed one of the early rites of passage for a professional trader, many others fail to achieve their professional goals because they either fail to complete one of the required steps or they do not recognize the need to complete a step at all.

What is a rite of passage? All cultures establish significant events or ceremonies marking the transition from one stage of life to another. One of the most meaningful events in more primitive cultures is the rite of passage into manhood for 12- or 13-year-old male children. In this rite, a man-child leaves the tribe to survive in the wilderness for a time while achieving some sign of physical prowess and bravery such as hunting and killing a wild animal. Thus, a rite of passage is that test of commitment and courage associated with reaching the next stage of success, development, and social acceptance.

In the modern world, we are surrounded by unofficially recognized rites of passage including graduation, the first job, buying the first car, buying the first home, getting married, having the first child, putting your children through college, retirement, and so on. Each culture and profession has its own rites of passage. Trading has established an unwritten series of rites of passage for an individual to reach the pinnacle of being a successful professional trader.

The rites of passage for a professional trader are as follows.

Raising the Capital Required to Begin Trading

There is little doubt that ...