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Hi Dave,
When I first read it, it seemed to be exactly the opposite of the approach
I would take to trade. But the thinking behind it begins to make sense if
you can equate losing with alcoholism; according to Dr. Elder, your focus
should be on transcending the behavioral patterns that cause you to lose
consistently. If you have demonstrated a pattern that will inevitably
destroy your account, he advises using the same approach as AA - instead of
standing up and introducing yourself as an alcoholic to a group of people,
he recommends 'introducing' yourself to your computer each trading day in
the same way, substituting the word loser for alcoholic. By reminding
oneself of the tendency, one can avoid it - at least that's what I get from
it.
Since a lot of our problems in trading stem from ingrained behavior that we
have to transcend, and from habits of thought that we need to change, maybe
there's some merit to his approach. Maybe it's an intermediate step on the
path to becoming the person one needs to be in order to be consistently
successful as a trader. Whether it works for everyone, I don't know; I do
know that when I started trading, I dismissed the psychological aspect as
unimportant. But these days I find myself more interested in that than in
any possible profits, and see as much need to examine and learn more about
myself as I once saw to examine charts and learn analysis - maybe more.
Regards,
Dennis C.
-----Original Message-----
From: David Hunt <adest@xxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, November 25, 1998 19:28
Subject: Re: Wrong Lessons for trading.
>I must say when Dr Elder said in his Psychology Video say to yourself "I am
>a Loser" each day before trading, he lost me. Did anyone else have this
>effect from the book?
>
>David Hunt
>http://www.adest.com.au
>
>
>----------
>| From: RAY RAFFURTY <rraff@xxxxxxxxxxx>
>| To: tesla@xxxxxxx; RealTraders Discussion Group
><realtraders@xxxxxxxxxxxxxx>
>| Subject: Re: Wrong Lessons for trading.
>| Date: Wednesday, November 25, 1998 11:35 AM
>|
>| Elder's book is quite good, but contains only about 3 chapters
>about
>| the psychology of trading. The rest is devoted to descriptions and
>methods
>| of using some of the more basic and readily available indicators. He
>then
>| develops these into trading systems and presents some risk management
>| techniques. After reading it you will probably want to go to some more
>| detailed texts on the subjects that interest you. For an excellent book
>on
>| the psychology of trading try "The Disciplined Trader" by Mark Douglas.
>|
>| Good luck and
>| good trading,
>|
>Ray
>| Raffurty
>|
>| -----Original Message-----
>| From: Terry S. Smith <tesla@xxxxxxx>
>| To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>| Date: Tuesday, November 24, 1998 11:11 AM
>| Subject: Re: Wrong Lessons for trading.
>|
>|
>| >Have never read Elders, Trading for a Living, but I have heard great
>things
>| >about it, maybe I will add it to my trading library. E-mail me privately
>in
>| >this matter.
>| >-----Original Message-----
>| >From: Mike Campbell <mcampbell@xxxxxx>
>| >To: tesla@xxxxxxx <tesla@xxxxxxx>; realtraders@xxxxxxxxxxxxxx
>| ><realtraders@xxxxxxxxxxxxxx>
>| >Date: Tuesday, November 24, 1998 8:54 AM
>| >Subject: Re: Wrong Lessons for trading.
>| >
>| >
>| >>Terry S. Smith writes:
>| >>
>| >>> The best book I have found to unlearn basic human nature is MINDTRAPS
>| >>> UNLOCKING THE KEY TO INVESTMENT SUCCESS By Roland Barach. Before
>| >>> reading the book it did not occur to me that I needed to shift my
>| >>> perspective 180 degrees to be successful. After reading it I began
>to
>| >>> realize why I was struggling to making any money in my investing
>| >>> persist. It lists 88 psychological snares or Mindtraps that we must
>| >>> unlearn to become successful in this business. The ISBN is
>| >>> 0-935219-07-2. Happy trading,
>| >>
>| >>How would you rate this book with respect to Elder's "Trading for a
>| >>Living"? I'm reading that now, and it's an eye-opener for me.
>| >>
>| >>
>| >
>|
>|
|