The Boy is talking with the merchant's daughter in the city. The boy felt a special connection to the girl and is sad that he may never see her again.
The boys father speaks to him about what life is like in other places and how the people are. They also talk about travel and what the boy wants to do. The boys father gave him three gold coins to buy a flock of sheep and become a shepard.
The boy goes with an old woman who says she can see his dreams. The woman reminds him of a gypsy and he gets scared. The boy tells her his dream and she was going to reveal the location of his treasure for a share of 1/10 of his treasure.
Here the boy meets the old man Melchizedek, the King of Salem. The king tells the boy about his personal legend and why he should go after his dream. This inspires the boy and the man requests 1/10th of his flock in exchange for the information and two stones that will help him make his choices.
The boy meets another boy that says he wants to help him get to egypt. The boy believes him and gives the other boy his money. The boy gets distracted and stops to look at a sword. The other boy runs off while he is distracted and takes his money and his sheep. The boy is left with nothing.
After the boy gets his stuff stolen he goes to a village where he finds a man who sells and buys crystal. The boy asks to get a job there so he can make money and he gives up on his personal legend for now.