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<DIV><FONT color=#000000>Jawad,</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV><FONT color=#000000>Congrats on some nice trades. I have just
returned from the weekend, and it looks like you have gotten some extremely
varied responses to your original post. I did find the description of your
trades very interesting. Your transactions were obviously based on patterns that
have repeatedly occurred. Was your awareness of these patterns based on your own
observation, or was it something you read about. If it is the latter,
where did you read about it? I ask this in order to try and pose a useful
response to your original question, 'is it this easy or is luck involved.'
You might consider that it was a little of both.</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>I propose that it might be a bit of both for the following reason... most
trades are. I have been trading for 20+ years, a significant portion of
the latter half, as a profitable full time trader. However, I still must
admit that often lady luck deserves at least partial credit for some of my more
profitable trades. The reason is as follows: I use several mechanical
methods to select trades and control risk, something I have become reasonably
good at doing. So when I select a trade that moves in the direction that I
thought it would, or if a trade turns sour on me and tanks, but because of good
money management I limit the loss, I deserve a pat on the back because I've done
my job well. My job is trade selection and risk management. But when
I get into a trade that not only performs well, but goes to the moon, I must
give some credit to dumb luck. Granted I picked the trade, but what I and
no other trader on the planet that I know of can do, is predict just how far
that trade will continue in the desired direction. That's why you hear
traders say, "let your profits run." We let them run because
none of us knows how far they might go. Trade selection and risk
management are the variables we have control over, the magnitude of a good trade
is a variable we do not have control over. Our job as traders is to use
prudent trade selection and risk management so that we can stay in the game for
these big juicy wins when they come along, but how often they come along is a
variable we can't control, so you might call it a factor of luck. </DIV>
<DIV> </DIV>
<DIV>In your initial trades you have encountered some very good success as a
result of some excellent trade selection. You made some good observations,
acted on them and were rewarded. Now make sure that you employ some
prudent money management, so that you can stay in the game and enjoy some more
windfalls down the road, because the magnitude of your initial winnings relative
to your starting capital was simply good luck. </DIV>
<DIV> </DIV>
<DIV>Jawad, if you have not already done so, you should read Jack Schwagger's
book Market Wizards. The book is filled with the stories of traders that
started small and became big. It also details the mistakes many of them
made along the way, and the lessons they learned. Many of the stories told
might be very applicable to your situations, and allow you to learn from their
mistakes and avoid having to make them yourself. In fact, it might
be a good idea to take a portion of your winnings and buy a number of books that
can help you further your success as a trader. Another great one to learn
from is Reminiscences of a Stock Operator, it is one of the best collections of
trading wisdom ever written.</DIV>
<DIV> </DIV>
<DIV><FONT color=#000000>For the other members of RTs, I debated whether to post
this or send it as private email. I opted to post it as I felt it might be
worthwhile to other new trades as well as Jawad. If you are not of the
same opinion, please accept my apologies.</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>All the Best !</DIV>
<DIV><FONT color=#000000>Bill Shumake</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV></BODY></HTML>
</x-html>From ???@??? Mon Jan 18 16:15:17 1999
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Date: Sun, 17 Jan 1999 22:42:49 -0800
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From: Thompson family <cthomp@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: Right Brain Thinking
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As a former orthopedist, I was frequently faced with the
task of solving coordination problems that originated as a
result of upper motor neuron (brain) malfunctions. Patients
would present at our office w/ unexplained and often with a
recent onset of physical malcoordination which was
accompanied by at times 'mental confusion' and 'speech
impediments'. It should be noted that all or virtually all
of the symtomatology presented was at a very mild level of
involvement to the observer, though of great significance
and 'awareness' to the patient. To simplify our solution
here for the purposes of remaining relatively brief, we
implemented what is called 'cross crawl' exercises, the
purpose of which was to coordinated the left side of the
body with the right side of the body and therefore the right
side of the brain with the left side of the brain. This was
originally diagnosed via a technique called 'Applied
Kinesiology' and a Dr. Goodheart was it's 'founder'. The
exercises used proved very effective. These included a
specific combination of contralateral arm movement,
contralateral leg movement while simultaneously head turning
in a predetermined direction. The exercises would be done
first in the 'front plane', followed by the 'side' plane and
finally the 'back plane'. These specific exercises would be
done 2-3x/daily over a 2-3 week period. They would
initially be quite difficult to perform but would become
progressively easier with time. When they no longer
required mental 'thought' to be completed, the exercises
were changed to once again be more 'difficult' to perform
correctly. The ultimate purpose/goal which wasn't difficult
to achieve but did require some time was a 'harmony' between
both sides of the body and therefore the brain. Virtually
everyone at some point in their lives, if not frequently,
will experience this problem. Most, even without treatment
given enough time, which is the key without treatment, will
experience spontaneous remission. After the initial
involvement, the patient could initiate these exercises on
there own on subsequent occurrences. Once this harmony is
achieved and only when this is achieved did we find it a
viable option to attempt to further right or left brain
enhancement and then again, preferably both in unison. To
attempt 'enhancement' prematurely resulted almost invariably
in 'blockages' which were impossible to hurdle.
If memory serves me correctly, one of the better sources
for 'enhancement' or stimulation per se was a book published
I believe in the early '80s or late '70s called "Whack on
the Side of the Head". I'm sorry, the author I don't
remember and I'm not sure if it still being published.
Jim
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