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Brian,
When you are trading emotionally, most often you are saying you are right
and the market is wrong . . . and as we know the market is never wrong.
If I may, I recommend you order a book called Zen in the Markets by Ed
Toppell from www.traderspress.com about $20.00, 100+ pages big print, about
a flight from Minneapolis to San Francisco to read (3+ hours). It will show
you why your ego cannot be trusted and that it will generally lead you to
make all the wrong decisions. It is written by an ex-Floor trader and can be
applied to stock investing as well as commodities. Once you have read it you
will realize that if you can control your ego and follow the very simple
steps outlined your investment success should improve dramatically. After I
read it and returned I examined a past five year investment period. I don't
even want to admit how much difference it would have made to my net worth,
had I followed the simple rules laid out. Once I understood how and more
importantly why my ego would normally make me do the opposite that should be
done things changed dramatically and I no longer had trouble cutting losses
quickly (right on Tim about learning to sell) while adding to winners,
something I had not ever done. There are a number of unique sayings in the
book, one of which may apply to your week is "after a successful battle, one
needs to tighten his chin-strap not loosen it", which it is what you likely
did. The more you make, the more cautious you should be come, your ego tells
you to do the opposite and take more risk however, thus the large loss.
"To find one self, one must lose one self first". (Zen)
Get the book, read it more than once and leave it on your trading desk as a
reminder that your ego is your enemy. I would recommend this easy reading to
all traders, then look back a past trades or investments and be prepared to
be amazed.
As an added note on my trading sheets all gains however small are written in
black, losses in red, three reds in a row, I stop trading and pick up the
book to examine whether my ego is back in control?
don ewers
----- Original Message -----
From: "Brian Keith Voiles" <admagic@xxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Friday, December 01, 2000 10:55 PM
Subject: Re: [RT] When & How to Quit When Losing
> Thank you again Jerry. I really appreciate your thoughtfulness in
> replying to my post. I've definitely got work to do.
> Warmly,
> Brian
>
> PS> I suppose the good news is that I'm just now starting my
> fourth year of Spoos trading! Maybe... just maybe... since I've
> survived this long, maybe I'll make it!
>
>
> > Yup. But it is not that easy and will take you some time. When you
give
> >up your plan and trade on your emotions, you are choosing to be right as
> >opposed to making money or preserving your grub stake. After that the
only
> >question is whether they carry you out feet first or head first. First,
> >learn to hate red ink, then learn to hate black ink that is getting close
to
> >red ink. Don't worry about being wrong: Ted Williams hit .400 and they
put
> >him in the Hall.
> > >
> > >> Brian: Until you can learn to sell, you will be someone else's
> > meal. There
> > >> are two kinds of people in the markets: those who can sell and the
> > suckers.
> > >> O'Neil says it takes about 4 years to learn to sell; it took me
longer.
> > >> Sorry to be a downer, but that's the way it is.
> > >
> > > Who is O'Neil and do you feel it would be worthwhile for me to study
> > > whatever materials he has available?
> >
> >Wm. O'Neil, founder of Investors Business Daily. In "24 Essential
Lessons
> >for Investment Success" he mentions that it takes about 4 years to learn
to
> >sell. You can get it now on sale for $7.50 so it's a good read at that
> >price. O'Neil has been around the block. Have a good weekend.
> >
> >best.....jerry
> >
> >
> >
> >
> >
> >
> >
> > Thanks again Jerry.
> > > I really do appreciate your time and valuable input.
> > > Warmest Regards,
> > > Brian Voiles
> > >
> > >
> > >> best.....jerry
> > >>
> > >>
> > >>
> > >>
> > >> To unsubscribe from this group, send an email to:
> > >> realtraders-unsubscribe@xxxxxxxxxxx
> > >
> > >
> > >
> > > To unsubscribe from this group, send an email to:
> > > realtraders-unsubscribe@xxxxxxxxxxx
> > >
> > >
> > >
> >
> >
> >
> >To unsubscribe from this group, send an email to:
> >realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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