Linda from LA sent me The Dip by Seth Godin and told me that it was a “very small book with a big, important lesson”.  The small part is pretty clear as the book isn’t 100 pages.

After reading The Dip, I can attest to the book providing a gigantic lesson.

The “dip”, according to the book, is that time in learning any skill after the initial excitement of beginner’s luck when learning becomes tough. 

In the beginning, your efforts are rewarded (a la beginner’s luck) so that the return on your effort is great.  However, after this initial rapid learning phase comes the dip when you do not seem to be advancing in your learning, particularly, as compared to what you learned during the initial period.

As this relates to trading, the vast majority of traders never advance beyond the “dip”.  They get stuck in the dip and give up trading, never mastering the skill.

However, just like everything else in life, the rewards are great for those few who succeed. 

Godin makes the point that if you are unwilling or unable to work your way through the dip, you should quit and devote your energy to something that you are likely to be able to move through the dip and succeed.

As I said at the beginning, do not be put off by the size of the book.  Big things often come in small packages.

Wishing you success in your trading,  Jeff

Copyright © 2008 Jeff Quinto

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