Today's Quote: “Experience is one thing you can't get for nothing” Oscar Wilde

There are several good books out there about trading that should be on every trader’s must read list. If you were forced to choose one and only one, the only possible pick would be “Tools and Tactics for the Master Day Trader”. We are going to run a series of excerpts from the best selling book for the next series of lessons. Now in the words of the master trader himself, Oliver L. Velez…

FIND A WINNER TO FIRST EMULATE—THEN SURPASS THE WINNER

If you are truly serious about trading stocks for a living, one of the first things you should set out to do is find a winner to emulate. And when we say "winner," we mean a real winner, someone who trades daily or close to daily and makes money in the markets consistently. We are sure we don't have to alert you to the fact that there are countless winners in word, but very few in deed. Those who talk a winning game will always outnumber those who really play a winning game. So finding a winner will not be easy, much less one willing to take on the responsibilities of mentorship. However, despite how challenging this search may be, conduct it until you find one, and try not to give up. Why are we so bent on you doing this? Because there is simply no faster way to learning the ins and outs of this demanding endeavor we call day trading. And there is no substitute for the saved time and money a personal winning mentor can provide…

... Speeding up the educational process in this way helps to increase the odds of survival. It paves a much smoother path to that state we call trading mastery. But as we just mentioned, finding a winner on your own will be tough. Finding a winner willing to take you under his or her wing will be even tougher. But if you manage to find one, grip really tight and hold on for dear life. Whatever you have to do within reason to get him or her to guide you, do it. In other words, your goal is to become a leech so that you can drain the winner's brain. But you must make sure you become the most helpful leech on the planet. Bring lunch. Send gifts to his or her kids. Give up part of your trading profits if that works. Consider indentured servitude for 3 to 6 months if you must. There is no cost too great if the mentor you select is a true winner.

Once this winner has agreed to guide you through the first boobytrap-filled phase of your development, your mission will be to first emulate the winner, then surpass him or her. As a student of anything, you should never attempt to just match your teacher. This would make you nothing more than a mere follower. The goal is to surpass your teacher. And allow us to further develop this critical point by saying this. Every true teacher will impart his or her knowledge with the sole objective of raising a pupil above him or herself. This quality is rare, but we believe it is out there. It is too hard for us to believe that we are one of a kind in this regard. So search as hard as you can. There is no guarantee that you will find a true winner, but if you do, consider that day the beginning of a new life. Your new life as a Master Trader.