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I agree. I received a flyer from Bill Williams about 2 weeks ago. I
did not read it at all. Why? It is related to what David Cicia said
about B.W. saying all this macho crap about "coming from fear", "don't
use MM" . . . I did not read it because on the cover was a picture of
him, arms crossed like a bad ass, a scoul on his face, and with a ground
level up camera angle, making him look 10 feet tall. When I see stuff
like that, I read no further.
Tim Proeber
> -----Original Message-----
> From: Raymond Raffurty [SMTP:rraff@xxxxxxxxx]
> Sent: Tuesday, June 09, 1998 1:25 PM
> To: RealTraders Discussion Group
> Subject: Re: Larry Williams
>
> David Cicia wrote:
>
> > I also took the B. Williams tutorial. He told me that using any
> kind of
> > money management was "coming from fear, not confidence." In my
> opinion,
> > listening to anything he has to say is a major threat to your
> equity, and
> > you SHOULD be afraid. None of his trading ideas are based on sound
> > principles - just "confidence" (if you know what I mean.) Risk
> control and
> > money management are the most important aspects of playing this
> game!!! Run
> > away quickly and steadily from anyone who tells you differetnly!
> >
>
> Hi David,
>
> I'm sorry that this response is so late but this thread
> is
> important to all traders. I agree with all your assertions but must
> point out
> the fact that FEAR IS THE ENEMY of all traders. Fear is the main
> (only?) mover
> of the market. Everyone has heard that fear and greed drive the
> market, but
> what most people do not realize is that they are both the same
> emotion! We
> have all experienced fear (fear of taking a loss, fear that the market
> has
> turned, etc.) to some degree. More subtly we have experienced fear of
> not
> being in a big move, fear that the market will go higher after we get
> out,
> etc. We call this fear greed, two sides of the same coin.
>
> Fear is the GREAT PARALYZER. Have you ever seen or
> experienced the
> following situation: the market is going against your trade, you are
> both
> afraid of taking a loss and afraid of not being in if the market
> should she
> turn your way. The inexperienced trader will often just stand there,
> frozen in
> place, at the time when action is most critical. I have seen traders
> let
> options expire worthless because they where frozen with fear, when
> appropriate
> action, applied at a critical time would have prevented some of the
> loss (or
> even made a profit).
>
> As you correctly pointed out the key to conquering fear is
> discipline. Many people make the mistake of thinking bravery is the
> opposite
> of fear. This is not correct. Bravery is a "mask" people put on to
> cover
> over their fears. Some psychologists might even suggest that bravery
> is also a
> form of fear, fear of being a coward. Only discipline overcomes fear
> and only
> discipline can concur the market. Unfortunately this is the easiest
> concept to
> expound and the hardest to practice. We simply bring to much baggage
> to each
> trade. I learned much of this in the Army: Fear leads to defeat,
> bravery may
> lead to victory but at to high a personal cost, discipline allows you
> to defend
> yourself while destroying the enemy, which is the ultimate victory.
> Unfortunately, I had to relearn much of this when I started trading.
>
> > At 10:11 AM 6/2/98 -0500, Peter Timaratz wrote:
> > >>Bill Williams also talked about "trading the market not your
> wallet" in
> > connection with stop >>placement.
> > >
> > >I was a student of Bill years ago. Back then I had a fairly small
> account
> > and I told him I thought it >was too risky for me to trade bonds
> with this
> > size of account. He said I should trade the market >and not my
> wallet. I
> > agree that stops should be calculated based on market
> considerations.
> > >But if a stop entails too much risk relative to your account then
> you
> > shouldn't take the trade. It's a >simple money management principle,
> but Bill
> > didn't agree with it.
>
> The truth is that you should set stops (and targets) based
> on the
> market you trade and chose the market you trade based on your wallet.
> Unfortunately to many people try to trade S&P futures with $5-10,000
> when they
> should be trading 1 E-mimi contract. The Indexes have done a good job
> of
> creating a verity of product sizes. What's wrong with the rest of the
> markets? How about a mini-bond future contract?
>
> Good luck
> and good
> trading,
> Ray
> Raffurty
>
>
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