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I am partial to Zen in the Markets by Edward Toppel
rcb
Denis Rochat wrote:
>
> Good thoughts Ira
>
> How about some opinions on the single best book for the three item
> mentioned.
> 1) Understanding the true nature of the market and it's participants.
> 2) Control of our emotions
> 3) Money management
>
> Thanks a million
> Denis
> Rochat
> denis@xxxxxxxxxxx
>
> -----Original Message-----
> From: Ira <ist@xxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Monday, May 24, 1999 10:46 PM
> Subject: markets
>
> >The following was sent to me by another trader and does it ever sum up
> >the
> >old adage "K.i.s.s.":
> >
> >"We live in an age of total computerization. With the appearance of
> >Omega
> >Research?s
> >Tradestation products, the world of trading has changed forever. Traders
> >are
> >now
> >chasing after ever more exotic and complex indicators. TS now comes with
> >
> >about
> >150 standard indicators, and it?s programming capabilities let the user
> >develop
> >any
> >kind of kind of personal indicator the heart desires.
> >
> >The phenomenal sales revenues of Omega Research, and other vendors
> >selling
> >similar software (such as Metastock, etc), show how far our
> >indicator-fascination has come. Those who own TS, or similar software,
> >cannot
> >comprehend how anyone could still survive without such software.
> >
> >No wonder that software vendors have such success selling us new
> >indicators
> >by mass mailings. No wonder that new traders on this forum often ask,
> >?what?s the best indicator??
> >
> >What is often overlooked is the fact that all these sophisticated
> >indicators
> >rarely improve the trader?s results.
> >
> >Asking, ?what is the best indicator??, is like asking Rembrandt,
> >?hey Rembrandt, I want to paint like you. What kind of brush do you
> >use??
> >
> >If you can?t paint, changing brushes will not improve your painting
> >much.
> >If you can?t trade, going from one indicator to another will not improve
> >your
> >trading much. The basis of good trading does not come from indicators,
> >it
> >comes quite different sources.
> >
> >The basis for good trading comes from money management, control of
> >our emotions, understanding the true nature of the market and it?s
> >participants.
> >
> >Yet, we need to do some kind of analysis, to avoid trading purely by
> >instinct
> >(which is contrary to what we were brought up to do). If we don?t put so
> >much
> >emphasis on indicators, what should we then do?
> >
> >As Steve has pointed out so correctly, most indicators in use are
> >calculated
> >from data presented on your bar chart. Such an indicator cannot possibly
> >
> >contain
> >anything that is not already present in your bar chart. The indictors
> >are
> >just
> >another way of presenting what?s already contained in that same chart.
> >
> >The message then is clear: if you are currently trading and changing
> >from
> >indicator to indicator, stop your search! You will not find the Holy
> >Grail in
> >the
> >maze of indicators. Go with what you already have, and try to become
> >more
> >familiar with the tools you are already using! Pay more attention to the
> >
> >basics!
> >The bar chart is full of hints and messages. All we have to do is learn
> >how to
> >read it.
> >
> >For the new trader: Don?t worry about indicators. Don?t feel intimidated
> >
> >because your more experienced peers use indicator names you have never
> >heard off before. Learn the basics! Buys some books that teach you how
> >to
> >work
> >with a chart (such as the works of Magee or Murphy)!
> >Try to recognize repetitive patterns on your charts! Try to figure out
> >what
> >really
> >makes the markets tick! Learn how to understand the mass psychology of
> >trading!
> >
> >And above all, keep your losses small!"
> >
> >Good day trading, Ira
> >
--
We create our society each time we interact with another
person.
What kind of society did you create today?
Richard C Bond, Sr. 1986
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