Part 2
Dr. Van Tharp is well known for his teaching of sound money
management and discipline.
How to Handle Hot Tips:

What happens when someone gives you a tip or idea about the market? Do you get very excited about it and want to act? In some cases, you probably do act. Or, do you become skeptical and suddenly distrust the person giving you the tip?
Or do you notice if the tip fits into your game plan? If it fits your plan, you need to do more evaluation according to the criteria that you use in your plan. If it does not fit, then you simply discard it, saying that's not something I know much about.
The only correct response to any "hot tip" is to integrate it into your game plan for trading to see if it fits and you can evaluate it. An improper response is to go out and buy some closed end Thai mutual fund just because "Van recommended it."

Van discusses mental rehearsal as one of the ten tasks of trading. The point of mental
rehearsal is to determine what could go wrong with your trading plan and determine
how to deal with it in your mind. That way, when it does occur under the heat of battle,
you are ready to deal with any distractions that might come up. Think of the tip you
received as a possible distraction. How did you react?
This tip is a test in several ways. First and foremost it is a test of whether or not you
even have a game plan.

Do you have a plan that helps you deal with learning of a "new sure-fire can't lose"
investment you've heard about? If not, then it's time you developed one. Just do
whatever it takes to develop a thorough business plan to cover your trading or investing.

Having a plan of this nature is so important that Van ranks it among his top requirements
for traders.

Every outcome is preceded by a process. You will not make money trading unless you follow a predetermined plan and continually stick to that plan. That's why you should pat yourself on the back every day if you can honestly say that you totally followed your rules throughout the day. Every "Market Wizard" arrives at that stature by taking one trade at a time. The primary difference between that person and the average trader is that the Market Wizard probably continued to follow his plan every single day. ~Van Tharp