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Please see "NW" replies below.
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
ric
ingram
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Friday, March 08, 2002 5:38
AM
Subject: [RT] Simple
<FONT face=Arial
size=2>Norman, you wrote:
Date: Thu, 7 Mar 2002
23:31:55 -0500 From: "Norman Winski" <<A
href="mailto:nwinski@xxxxxxxxxxxxxxx";>nwinski@xxxxxxxxxxxxxxx>Subject:
Re: Eyes Open WiderRic, Your story
highlights that some folks had a penchant for takingsomething simple and
making it complicated. Spreading between two marketsor indices
greatly complicates one's market posture and leaves onevulnerable to
losing on both legs of the spread. One should only do such aspread
if by virute of 20 years or more of market data shows that the spreadhas
reached a major support or resistance area, which is probably a
rareevent. To enter a spread and due to loses start trying to fix
it bythrowing in a another market is more of the same pattern of
complicatinglife. Bottomline, buy against support, sell against
resistance, preferrablyin one market at a time. If wrong, get out.
During my stint at the CBOE -CBOT, I had the good fortune to do business
with Eddie & Billy O'Connor.They started out as poor kids from the
southside of Chicago and by the 80sthey were probably each worth about
100 million dollars. They were mastersat spreading. Eddie always said,
"if you put it on as a spread, you take itoff as a spread". This
means no legging and no jimmyrigging your losingposition with other
junkKEEP IT STRAIGHT FORWARD & KEEP IT SIMPLE.
<FONT
face=Arial size=2>Thank you for your comments which seem to be
based on one set of trading concepts - trading with the trend and exiting if
you are wrong.
NW: Yes, I hope that you coach proper trade and
money management which entails defining a trade and if the parameters are
exceeded by a defined amount, one exits and cuts losses. Any other approach
entails flirting with disaster. I mostly use other trading
techniques, but I can see where you are coming from and there is nothing wrong
with that. I still use trend-following on occasion.
NW: This is not about trend following or not
trend following. It is about management. Please see my comments above.
I have little or no knowledge of trading based on the planets
and would not even consider questioning the experience of those that do so
trade, and make money with such a trading style.
NW: This has nothing to do with a particular
approach to the markets but rather the discipline to have a well defined
approach, execute that approch, and cut losses if you are wrong. It is also
about keeping that approach simple enough so that managing that approach is
workable. If through fear, you have little personal
experience of spread trading, what is your basis for questioning those who
have experience?
NW: I don't understand your point here. I have
considerable experience with spreading. I was a market maker on the floor of
the CBOE for 12 years and used spreads all day every day. However, if I put it
on as a spread, I took it off as a spread.
I have also spread futures in one indices vs.
another. I also did straight forward long
and short positions.I do not castigate your way of trading by
the planets, but you apparently feel a need to decry one of my styles of
trading.
NW: I wasn't decrying anything. I was trying to
help you Ric. You seem to be getting upset. Perhaps you need to
take a step back and see if there is some wisdom in what I have presented to
you. Please take into account that sometimes the truth is hard to take.
Our egos can get in the way. Why are you so
defensive? Do you feel attacked?
NW: Not at all, but I certainly got the
impression from you that you are on the defensive. Ok, let's try this. Just
open yourself to the possibilty that you may benefit from a few of the things
I have told you. It not only applies to trading, but also to life.
Simplifying your life can mean you will be
happier and more productive. If you make money by cycles of the
heavens, good luck to you. I hope you continue to make lots of
money trading by the planets and eventually feel comfortable enough to fully
share your successful methods with others.
NW: This has nothing to do my approach to market
analysis, but rather my philosophy on life, to keep things simple. I
think you may benefit from this approach too. When you do,
accept that some others might find your ways complex.
NW: There is nothing complex about simple unless
you choose to make it complex. Simple is a
state of mind. You can get to 4 via 2 + 2 = 4 or via an infinite number
of calculations. The choice is yours. However, if your goal is 4
and not creating calculations, one will seek the most direct route.
I understand that what seems complex
to me might be easy for you.I also understand that what might be easy
for me could seem less than straight forward to you.
NW: I disagree. Simple is simple.Complicate
is complicate. You have taken a simple topic, simplicity, and made it
complicated. Everyone is different. I accept
this, why don't you?
NW: Everyone is different, but 2 + 2 is usually 4
for most people. I respect that your way works for you.
Why can you not be equally considerate?
NW: Considerate? I was being more than
considerate. I was trying to help you Ric.
You offer yourself out as a coach. It seemed to
me that your needed some coaching.
It would be hypocritical if, as a coach, you are
not open to receive some coaching. When you have answered
these questions, don't tell the group, tell yourself - for that will be of
most benefit to you in the long run.
NW: Yes, that is the sort of thing I am trying to
tell you Ric. 'Too complex' or 'keep it straight forward'
are phrases often used to describe an idea we are avoiding accepting as being
of some merit, or as a means of avoiding questioning our existing
beliefs.
NW: Yes, I agree that you are in denial and
avoiding looking at yourself straight on and acknowledging that some of these
ideas may benefit you. The use of the word 'junk' often
is an outward expression of an inner emotional reaction.
NW: No 'junk' as I used it was just American
slang for "stuff" or a miscellenous catch all type word.
'Too long' is also a phrase sometimes used when we cannot
easily finish reading something because it makes us
uncomfortable. But I accept that this is a more adult
approach than deletion and filtering out.I suggest calm, inward
reflection, and digestion. We all grow by experience, reflection
and digestion.
NW: There you go, now you are getting it.
Good job!
<FONT
face=Arial size=2>To your
continued success and future growth.
NW: You too Ric. Let me know if you need
anymore coaching. <FONT face=Arial
size=2>
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Best Wishes,
<FONT face=Arial
size=2>Norman
Unconditional regards, Ric.<A
href="http://www.traderscalm.com/"; eudora="autourl">www.traderscalm.com
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