The Traders Journal

Stock Market Mastery: Part II


Mastery Part II

“Chains of habit are too light to be felt until they are too heavy to be broken.”
--Warren Buffet

A few weeks ago, I wrote a blog about the four classic elements of mastery. The resulting firestorm from my trading buddies and fellow investors was shocking.  Seems as though everyone subscribes to a different mastery model. In other words, my model is just one of many “classic” models of mastery. I was also questioned as to whether mastery in the stock market is even possible in the same sense as mastery of a language, for example. Some argued that it is not possible because mastery of the stock market requires possession of an impossibly diverse set of skills and techniques.

My response was that this might seem true on a purely simplistic level, but the stock market is in fact a contest or competition between different parties, and mastering it means gaining the upper hand. This is quite different than mastering a foreign language. Granted, gaining the upper hand in the investment arena requires consummate organizational and analytic skills, as well as attaining complete command over “the investor self.” Only then will one’s proficiency result in consistently mastering the stock market competition.

So whatever model of mastery to which you subscribe, do consider that a stock market master makes the difficult look easy, although the journey of attainment is hardly a random cakewalk.  This then is the description of the second basket of the investors’ “enemies within” which I gleaned from surveying 80 students in my investment class.

In my first blog, I wrote about “Planning Roadblocks”.  The second basket deals with “Knowledge and Education Issues.”  As you review these confessions by investors much like yourself, ask if any of these apply to you and then ask yourself how you need to overcome them.
  • Intellectually, I’m not satisfied unless the solution has complexity.
  • I have a need to know why. I waste a lot of time searching for why.
  • I’m an information junkie. I never seem to have enough information.
  • I’m informationally challenged. I believe everything I read and whatever the latest guru is telling me.
  • I seem to have trouble learning from my past mistakes.  I often repeat the same mistakes.
  • I lack the ability to focus so I don’t acquire the appropriate expertise.
  • Until I’m comfortable paper trading, I’m not going to use real money.
  • I’ve learned how to use lots of different tools, but they seem to be the wrong tools.
  • I’ve been reluctant to embrace technology and software, and I feel I’m being left behind.
  • I’m too cynical. I’m a cynical student. I have trouble believing anyone is willing to help me become a better investor.

The bottom-line is a question you must ask yourself.  Are you willing to do whatever it takes to exorcise your “enemies within” and cast away your amateurish inefficiencies to attain stock market mastership?  Try to remember what Warren Buffet said:  “There seems to be some perverse human characteristic that likes to make easy things difficult.”

In closing, I believe that within all of us exists the desire – if not the need – to master one thing in our lifetime.  I submit to you that attempting to acquire the abilities to achieve mastery in the stock market is both a worthy lifetime objective and an achievable goal.

Trade well; trade with discipline!
-- Gatis Roze

Gatis Roze
About the author: , MBA, CMT, is a veteran full-time stock market investor who has traded his own account since 1989 unburdened by the distraction of clients. He holds an MBA from the Stanford Graduate School of Business, is a past president of the Technical Securities Analysts Association (TSAA), and is a Chartered Market Technician (CMT). After several successful entrepreneurial business ventures, Gatis retired in his early 40s to focus on investing in the financial markets. With consistent success as a stock market trader, he began teaching investments at the post-college level in 2000 and continues to do so today. Learn More
Subscribe to The Traders Journal to be notified whenever a new post is added to this blog!
comments powered by Disqus