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>From the DSMIII (the Dumb and Stupifying Manuel)
-----Original Message-----
From: BrentinUtahsDixie <brente@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, March 10, 1999 3:36 PM
Subject: Re: Trust=great system???
>Actually I'm not so sure that "doing something that doesn't work ovre and
>over again" is a good definition of insanity. It could also be the
>definition of a Scientist or a Comedian.
>
>Insanity or psychosis is simply defied as any mental disorder in which the
>personality is seriously disorganized. A psychotic personality is defied as
>a person characterized by emotional instability, lack of sound judgement,
>perverse and impulsive (often criminal) behavior, inability to learn from
>experience, amoral and asocial feelings.
>
>Brent
>
>-----Original Message-----
>From: Dennis Conn <dconn@xxxxxxxxx>
>To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>Date: Wednesday, March 10, 1999 3:17 PM
>Subject: Re: Trust=great system???
>
>
>>Dick Webb wrote:
>>
>>>Does anyone have experience with asking yourself questions that lead
>>>to good answers?
>>
>>As regards systems fine-tuning, no. As regards psychological shortcomings
>>which affect trading results, yes. For the benefit of those who are new to
>>trading, here is my offering.
>>
>>Flashback:
>>
>>Several years ago, I bet on pro football - excessively. After writing an
>>involved program to factor all the variables I felt were necessary, I
>>backtested a few years of data and decided to give it a shot with real
>>money. During the first 3 - 4 weeks of each season, my winning percentage
>>exceeded 75% (betting only $100 per game). Then I'd get cocky and forget
>>about money management and discipline - I'd start to bet $500 - $1000 per
>>game and that week I'd lose 5 out of 6 wagers. Then I'd have to suck it
up,
>>go back to $100 - $200 per game, and spend the rest of the season sweating
>>it out right through the Super Bowl just to break above even for the year.
>>This cycle continued season after season, and even though my winning
>>percentage was over 60% each year, my bankroll didn't increase by more
than
>>5% in all that time. To avoid the stress on my marriage, I decided to stop
>>gambling.
>>
>>Fast forward:
>>
>>Some years ago (and since my football gambling), I learned about a great
>way
>>to make money - commodities! After paper-trading for some time, and
>>backtesting several months worth of data in most of the markets, I decided
>>it was time to give it a shot with real money. Over the first 4-5 months,
>my
>>winning percentage was over 85% - then I got cocky, forgot about money
>>management and discipline, and decided to write a number of calls in a
>>market that decided it was time to explode. After giving back just over
>>half my account, I decided to go long a few contracts in feeder cattle. I
>>could have sworn there was about to be a fifth wave advance, but what I
>>thought was just a fourth wave correction never stopped - and neither did
>>the margin calls. After stampeding downhill for a few days, those cows
>>decided to jump off the edge - the gap down on that final morning's open
>>took the rest of my account and put me into debit. As a result of the
>>sleepless nights during the call-writing and nearly vomiting when watching
>>the feeders gap down, a number of questions occurred to me. Over the next
>>several months, I had to face a few hard facts about myself - so to get
>back
>>to the subject of questions, here are mine with the answers I had to
>>contemplate.
>>
>>1) Do I rely too much on luck as opposed to skill? Answer: Yes
>>2) Am I trading or just gambling with my money? " :
Gambling
>>3) Do I have a gambling problem? " :
>>Yes
>>4) Do I want to be a gambler or a trader? " :
>>Trader
>>5) What do I need to change? "
>>: Self-discipline
>>6) Have I ever demonstrated self-discipline? " : No
>>7) Is it possible for me to be disciplined? " :
>>Yes
>>8) Can I take responsibility for my trading results? " : Yes
>>
>>I think it was Brent who once pointed out that doing what doesn't work
over
>>and over again is the definition of insanity. If I ask myself those
>>questions now, the answers that need to be different are different, with
>one
>>exception: I still honestly believe I have a gambling problem, because
it's
>>still hard to take those losses when I know I have to exit a trade that's
>>not working. I am disciplined enough to take the loss anyway, and I don't
>>risk an inordinate amount of my account on a trade. Maybe someday, I'll be
>>happy with all my answers to these and the other questions I haven't yet
>had
>>to face - I guess learning the truth about oneself is the biggest part of
>>becoming a successful trader and, more than even the potential profits,
can
>>be the most enjoyable part of the game. The truth does set you free, but
>>only if you're willing to accept it.
>>
>>Regards,
>>
>>Dennis C.
>>
>>
>>
>>
>>
>>
>>
>>
>
>
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