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> Subject: 10 Important Truths
> Date: Sat, 27 Jun 1998 16:13:43 -0700
> From: Jim Allen <jallen7@xxxxxxxxxxxxx>
> Organization: EarthLink Network, Inc.
> Newsgroups: misc.invest.futures
>
> I have been playing the trading game off and on for more than 30 years.
> I now
> trade for a wealthy family whose investments I manage. I have SC, TS,
> Adv. GET,
> real time data and a whole bunch of other stuff, memberships in secret
> societies,
> overnight faxed newsletters, lots of books, software, probably having
> spent close
> to $50,000.00. Our stock and futures trading commitment is considerably
> more than
> $2 million.
>
> If I were in your position, but knowing what I now know, I would use
> whatever you
> have now and study, study, study charts, read every book on trading you
> can get
> your hands on, and work through the ideas you encounter and establish
> for yourself
> what works and what doesn't. I don't care much for Elliot wave and such
> stuff
> myself, but that's beside the point. SuperCharts and end of day data is
> fine to
> start with.(Sure as hell alot better than what was available in the
> '60's!)
>
> By all means, after papertrading to shake out all the bugs, try trading
> grains on MidAm
> with small capital until you learn enough to succeed. Have patience.
> Build your
> capital up by frugality, and cautious investment.
>
> Advance GET is wonderful. It will put the little wave counts and a
> whole lot more
> on the screen with one mouse click. Learn to count the waves yourself,
> then if
> that works for you, and you get to where Adv. GET makes sense, you'll
> know
> when it's leading you down the path to ruin. Get to be an expert on
> what you
> are doing.
>
> You lack two things right now that are absolutely critical to trading
> success.
> The confidence that comes from experience, knowing what works for you,
> and
> capital. Going into the CBOT or Merc with that small of a stake turns
> trading
> into crapshooting, frankly, because now, you can't afford a mistake, at
> the very
> time when you are most likely to be making them! You can't win if you
> can't
> play! If I make a $50,000 mistake (and I have lost $50,000 in one day,
> several
> times!), it makes me feel really awful, but doesn't put me out of the
> game, or
> even close.
>
> Above all else, waste no time or money on these system
> vendors/newsletter gurus.
> I don't know of any of them who are wealthy, or even successful, from
> the insight
> they are so eager to sell you. Few of them trade, and as far as I can
> tell, none
> trade successfully. Before you believe you've found The Guru,
> rigorously verify
> his claims with proof of live trading. For the most part, they are
> selling maps
> to the gold at the end of the rainbow to people who yearn for wealth
> without
> working, who hope (I can't imagine that they believe it) that they can
> write a
> check for a few thousand or so, plug in a computer, do what it says
> there on the
> screen and in a year or two be rich beyond their wildest dreams. If you
> read
> Market Wizards I and II, you'll notice that none of the traders said
> their
> success came from mailing a check to a vendor and following the
> instructions!
>
> In order to profit, you have to take money away from people who are
> doing
> this for a living, who have gotten the privilege of trading for a living
> the same
> way a football player or pro golfer gets to make millions playing a game
> that many would play for free...by being the best at what he is doing!
>
> At the end of however long it takes, you will find the truth of this:
>
> 1. Buy low.
> 2. Sell high.
> 3. Take losses as quick as possible, as few as possible and as small as
> possible.
> 4. Let your good trades run, but don't let a winner turn into a loser.
> 5. Nobody predicts the future.
> 6. Keep your risk small in relation to your capital, a few percent
> tops!
> 7. It shoooooooooo is fast!
> 8. The winner is the first guy to realize what's going to happen next.
> 9. Find a broker you trust, and pay him reasonably. The cheapest oats
> have almost always already been run through the horse.
> 10. Don't do nothin' stupid!
>
> Good luck!
>
> Jim Allen
>
> cyfertrader@xxxxxxxxxxx wrote:
>
> > A question....
> >
> > I have been studying futures for a little over a year...bought some
> > books....use SC4...I have $3K to start out in futures... Here is the
> question.
>
> >> SNIP<<
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