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Hey, this is very good letter.
I like that.
Every corner round and polished. Good package of thoughts. I do not
see it
to practical, but I do not want to talk about that, now.
There is something in letter that I do not agree. It does not bother
me, just do not agree.
> There is a proverb: "A smart man is learning from other people
mistakes, a
> fool is learning from his own mistakes, and only an idiot does not
learn at all".
So far, by reading this interesting letter, I see more than half of
myself in a category of "fools" .I would be interested who invented
such a proverb? I bet it was not "fools" and of course not "idiots".
But why smart people would need it?
Would they survive without mistakes and experience of fools, would
they?
Every proverb supposed to act as a shield from attackers, if there is.
You shield yourself with an obvious phrases that is actually, in this
case, supposed to limit your ability to think, to fantasize, invent
and create, I see quality to << learn from his own mistakes>>
extraordinary qualities. Not everyone can afford it and can "go for
it". Albert Einstein said ones "The gift of fantasy has meant more to
me than my talent for adsorbing positive knowledge."
You can speed up some of your basic knowledge by reading books, but
this is it. If then you want more, you must get off soft and
comfortable "smart" chair and ware not very comfortable "fools" shoes.
There is no other short cut way.
But letter is good.
Regards,
Val.
----- Original Message -----
From: Alexander Levitin <alevitin@xxxxxxxx>
To: <Anthony3@xxxxxxxxxxxx>; <omega-list@xxxxxxxxxx>
Sent: Sunday, July 23, 2000 2:40 AM
Subject: Re: Intitial Trading Methodolgy
> At 02:52 PM 7/21/00 -0400, Anthony wrote:
>
> >...exactly how did you find your trading style? Was it by
> >trial-and-error?
> >--
> >Anthony
>
> Dear Anthony,
>
> There is a proverb: "A smart man is learning from other people
mistakes, a
> fool is learning from his own mistakes, and only an idiot does not
learn at
> all". Try to be a smart man. I will outline general plan how I wish
I have
> started my trading. (Please, do not ask me how I actually started.
But to
> give you a hint: I am an imbecile.)
>
> First, I would read and reread and think through a few books left by
great
> traders and teachers of the past: Richard W. Schabacker, Jesse L.
> Livermore, for example. I would skip initially their trading
technique and
> concentrate on strategy of trading, on logic of trading on cardinal
rules
> of trading business.
>
> Second, I would read a basic literature on trading (classics are the
must).
> I would ask any trader who makes living from the trading and had
survived
> doing so for more then ten years (let say) to give a list of his
favorite
> books. When you collect those books, you will see many of the same
names.
> Make a note of different techniques that excite you (get your
attention).
> Check them out - do they work on the charts of what you attempt to
trade?
> Do they work in all kind of markets or only in specific ones
(trending
> market, sideways market)? If only in specific markets how to
recognize the
> market they are working in? If they do not work go to next one. It
may take
> a long time to find techniques that work, but if you do not have
them, if
> you do not know how to make money from the history chart, what are
your
> chances to make money trading?
>
> Three. After you found an acceptable techniques of trading, you need
to
> come up with a trading plan (trading strategy). It should specify
what and
> when you buy, and when you sell if you trade is successful or not.
Take
> your plan and go over all history of the instrument you will trade
(stock,
> commodity). If it is working to your satisfaction go to next step,
if it
> does not, improve it. If you can not make money on paper you can not
make
> money if real life (do not tell me about luck, I know all about it).
>
> Four. Start trading with the smallest position you can take. Do not
> increase your position until you are very confident that you plan is
> working under different market conditions. Trade you minimal
position for a
> year, two or better a full market cycle in your instrument. Do not
rash. If
> you could figure out how to make a penny a year for sure you will be
a
> zillioner in no time. In business of trading you could increase your
> business manyfold any time and you could have practically unlimited
> leverage. Plus, if you know how to make money, everyone would love
to give
> a lot of money to trade (like banks, for instance).
>
> Five. Analyze your every trade. Go to step one.
>
> Good luck.
>
> Yours, Alex.
>
>
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