One night James tries to scare Percy by telling him that there's a ghost at Ulfstead Castle. Stephen reassures Percy that there is no such thing as ghosts, but James comes to the castle to try to scare both of them. Percy and Stephen each end up falling into the moat, but James doesn't know where they are and when he hears them whistling, he ends up believing his own story and scaring himself! After a couple of mishaps involving a torn sack of mail and some cargo on the line, Percy begins to feel like he has too much bad luck. Stephen lends Percy a lucky charm which helps him regain his confidence. But when Percy realizes that he doesn't have it with him, he has to find the confidence to help pull Bill and Ben back onto the rails without it.