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THE STAIRWAY TO PROFITS
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So far, we have discussed the present condition of the majority of traders, looked at how really simple the market is, examined chaos as a more effective trading paradigm, and delved into the two different structures of structure. In this chapter, we construct an interactive map that will guide us through the rest of this book. We want explicit directions and feedback that will tell us where we have been, where we are now as traders, and what has to happen for us to improve our trading ability.

One of the problems of learning to trade is that there is no regular progression that takes a beginning trader from ignorance to knowledge or from losing to consistent winning. The programs currently available either teach the vocabulary of trading or simply provide a series of favorite indicators. Neither of these approaches produces good consistent traders. There is, however, a universal five-step progression from first interest or novice to becoming an expert in any field of endeavor. This progression was examined by two brothers, Hubert L. and Stuart E. Dreyfuss (1986), in a book about computers, and by James F. Dalton, Eric T. Jones, and Robert B. Dalton (1990), in a book about the markets. This progression will provide us with a framework for creating our map as we move from one level to another and for studying the historical and scientific differences at each level.

Imagine that you have just attended a piano concert featuring Mozart sonatas. During and after the concert, you have become so uplifted and inspired that you decide, "Whatever it takes, I am going to learn to play the piano. No matter my background, lack of musical talent, age, or whatever—I am going to play the piano!" To parallel this scenario, let's assume that you have been persuaded—by potential profits, challenge, enjoyment, lifestyle, and so on—that you are going to learn the Prof- itunity approach to trading commodities.

For your music goal, you would most likely buy or rent a piano, buy an instruction manual, and hire a teacher. For your trading goal, you would most likely buy or lease some quote equipment, begin tuning in to CNBC-FNN, subscribe to newsletters, and hire "teachers" in the form of workshops, books, and/or tutorials. In each case, at this level, you are a novice.

You are exposed to all sorts of material that will create either good (effective) or bad (losing) habits and concepts. You are very excited and are living on what psychology calls "germination" energy. You feel as though you're entering a new romance. You have an abundance of energy and almost every thought is, "Let's get on with it."

In music, you are learning the basics—the value of a whole note, a half note, a rest, and so on. You learn where middle C is and the correct fingering for playing a scale on the keyboard. You are dealing with individual notes and octaves as opposed to tunes and compositions. In the Profitunity approach, you are learning to trade so that you don't lose money while gain­ing experience in the market. Let's examine this Level One or novice level.

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