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Phil et al
Here's my tuppence for the MONTH . . .
Phil Lane wrote:
>
> At 03:45 PM 10/27/98 -0800, Neal wrote:
> >Phi, are you having a day worse than mine?
>
> I was having a fine day until I downloaded the Omega list.
> Nea1, how do you know that this stuff doesn't do more HARM than good? Are
> you willing to accept the responsibility? I'm still waiting for you to
> answer these questions.
>
But . . . first thing traders need to learn is to take full
responsibility for their trades. It is no-one elses fault but your own
- you are wholly responsible for the outcomes of your trading.
Once we accept full responsibility, and don't blame anyone or anything
else for what happens, we are then empowered - we can take control
because we are no longer a victim. We have choices, we can control our
positions, we have the right mind set . . .
> I've been trying to make an IMPORTANT POINT lately but feel like a voice
> crying in the wilderness. That being that it's a BIG MISTAKE to listen to,
> care about, or especially to seek out the Market Opinion of others. When
> they lay it on you unsolicited you should run the other way. And when they
> start telling you how they were Right on this or that you should recognize
> it for what it is: Blatant self promotion, insidiously designed to appeal
> to those who are weak in their convictions and confused in their opinion.
AGREED. The only valid reason to trade is to make money - this is not
about trying to be right or control the market. You have to let go of
your ego and give up the pretence that anyone really knows which way the
market will flow or why on a consistent basis. Here I am reminded of
something Bill Williams wrote (note I am not a big fan of his fractal
misnomer and hype but this is posted on my wall)
"LET THE MARKET ORGANISE THE NEW INFORMATION"
Our job is to listen to the market and concentrate on EXECUTION - on
putting the trade on and taking it off. Forget the opinions, views,
whys and wherefores - that's not your job as a TRADER. Let the market
do that job - the market is the final arbiter of your success - not your
ego.
To make money you have to be long when it IS going up and short when it
IS going down. Plain and simple.
At some stage even "countertrend" traders must follow that to make money
- that's the essence. Our trading programs should and must reflect this
simple rule.
Warning: pop-psych to follow: This letting go is of course the hardest
thing to do. There is an enormous conflict to resolve within yourself.
Try this for size ( note I am a big fan of Adrienne Laris Tograhie).
Assume you are composed of many parts. Take "Mr
Right/Bigshot/BigMouth/Analyst" and visualise him in one hand. In the
other take "Mr Execute/Sheep/Easymon/Trader". Whatever works for you.
Both have needs to be fulfilled but are in conflict. Mr Analyst needs
to talk/be right/acknowledged - Mr Trader needs to act/follow/make money
etc. Have them talk to each other. Then get a 3rd part - your creative
self - to resolve the conflict and get all parts to agree.
eg Analyst will paper trade, Trader will real trade.
Analyst will talk/spin after the final bell, Trader will walk/act during
the session.
Do whatever works to get these guys working together, yet satisfing
their own needs.
>
> In my own sick mind I feel like if I could just get people to see this
> point they could potentially save a lot of money. That's my motivation. But
> I do hereby give up. Everybody has to learn the hard way.
Don't give up, keep telling it like you see it . . .
>
> P.S. To the bottom buyer in corn: Did I understand that this was Neal's
> idea? Here's another idea: Everytime it goes down another 5% you should
> double up. Then when you get a margin call you can get a cash advance on
> your visa card. Finally when you're flat broke you can go ask Neal for
> help.
Trade what you see and not what you think/hear/read . . .
KISS
Peter
(Keep It Simple Smart)
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