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Black Belt Trading: Investing Like a Pro 175

ple do: some are slow and steady, others are erratic, and there is everything in
between. Once you can key into the stock’s character, you can know what to
expect, when is it acting normal, and, more importantly, when it breaks char-
acter. This is a skill that anyone can learn if you study enough charts.”
“The only time I said no to Bill as a portfolio manager was when he asked
me to teach the IBD advanced workshops,” says Mike. “I was absolutely
terrified of public speaking.” Bill didn’t understand Mike’s fear but encour-
aged him by saying, “You know everything about the system backwards and
forwards.”
Mike continued to struggle with his fear of public speaking but began
teaching the advanced workshops with Bill and really saw value in the sem-
inars from the feedback he received from the attendees. Bill always said to
everyone who helped out with the workshops, “We are getting as much out
of the seminars as other people because of all the tremendous work we put
in before we teach. It forces us to really follow the system.”

Day-by-Day Stock Chart Simulations Are Extremely Instructive
Mike thinks the workshop animations have helped him the most as a trader:
“At the Chart School Seminar that I teach with Charles Harris, we go over
animations taking stocks day by day through their move. We stop at various
points, letting people know what we would do with the stock. When I’m
conflicted with a decision in a real trade, I imagine I’m going over it at a
seminar, and it gives me clarity.”
For a newer investor, Mike cautions, “Don’t try to make a lot of money
right off the bat. Making money shouldn’t be the primary goal. Learning the
system should be, then the money will come. The worst thing that could
happen is that by a fluke, you make a lot of money with bad habits in a more
forgiving market.” He suggests, “At first just trade with 10% of what you
were planning on investing. Learn to make mistakes and how to correct
them before investing a larger portion of your capital.”

Look for Historically Similar Market Periods
The study of bull and bear markets helps illuminate the larger up and down
trends that the market goes through and repeats decade after decade.
Helping investors understand the overall market trend has been one of Bill
O’Neil’s goals since before the inception of the newspaper in 1984. Having
historical data to help interpret the market’s trends over the years is enor-
mously helpful.