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May 18-24, 2003

 

Questions

Answers

Sat, 24 May 2003

 

London Tribe


As there's no Tribe nearby I forward my details to start one.

 

 

Welcome

London, England!

 

You are now on the

Tribe Directory Page.

 

 

Little Ben

 

Famous London tourist attraction

for the budget-minded traveler.

 

Clip: members.aol.com/

rager1960/myhomepage/little%20ben.jpg

Sat, 24 May 2003

 

Gambling-2

See: Gambling


Dear Ed,

Thanks for your answer. My father gambled and views trading in the same light and would much rather I went and got a "proper" job. Your answer made a lot of sense "aha", I will get my CM to listen to Fred on this matter.

thanks again

Feelings of needing to gamble might transform into other forms of frolic.

 

 

 

Lamb Gamboling

 

http://www.newrivervalley.com/

lambs/page2.html

 

Sat, 24 May 2003

 

Processing the Process


Hi there ...

I was wondering if you could you bring your insight to bear on something...

I've started applying the process to myself. When I feel a "drama" coming on, I stop, sit tight, and meditate on the feeling ... exploring it, trying to find out how and where I experience it ... and just "go with the flow" - see where it takes me ...

I have one feeling that now I'm actually paying attention to it, I recognize it as being quite common ...

Something happens ... usually bad ... money related, or perhaps "done something wrong" or "in trouble again". I feel it as an "unpleasant" surprise, I'm hit by a "thud" in the stomach as it drops, tense jaws, kind of frozen in a "now what?" type feeling ... As I concentrate, I note a slight headache and perceive voices. One is kind of wordless, more of a shocked feeling than can be summarized as "How can this be happening?" "They can do this to me", "This shouldn't be happening like this" or even "why does this have to be happening".

 

It's a "shock" that "not doing anything" (i.e. inertia, head in the sand, irresponsibility or rather not taking responsibility) either hasn't made a problem go away, or has actually caused a problem instead of making everything OK, as I'd kind of hoped it would. Also, as I concentrate, I get fuzzy little snippets of memories of times when good things seem to just have "happened" without me actually having to do much. At the same time I'm telling myself "You should have acted earlier", "its your own fault", "you knew you should have done something", "you could have seen this coming" or "you knew this could happen" culminating in "Jeez, why don't you act when you have the chance?" and a few other self-referencing expletives.

I've been meditating on this for a while, and although I "understand" rationally what's going on, and am fully aware of what I *should* do for these situations not to arise in future, the feeling hasn't resolved (I haven't resolved it?) into an aha.

 

When I imagine the situations again, I still feel more attracted to the old method of "ignore it and maybe it'll go away" rather than to the new method, "lets sort this out now", which has immediately "unpleasant" consequences.

Just keep at it? Or am I missing something?

Thanks,

Trying to figure things out interrupts TTP. You might formulate your need to analyze into a feeling and notice where it takes you.

 

When you run your narration of the thud, tense jaws, voices ... you might try suspending the judgment that these are bad feelings and just get in to them as pure experience.

 

Notions about "should" can interfere with experiencing the way markets are actually trending.

 

A skillful receiver can help you focus the feeling, keep validating it and encourage you to keep going forward.

 

 

 

A Rose

 

Analyzing it, judging it, evaluating it ...

all interfere with experiencing it.

 

 

Clip: www.platinumphoto.com/Models/

Gladis/Gladis%20Smelling%20the%20Rose.jpg

 

 

Sat, 24 May 2003


CM/Fred

Hello Ed,

Your model of the mental process intrigues me. This model does have some basis in a number of psychological, scientific and religious theories including Ying/Yang, Left/Right Brain, Conscience / Unconscious, Physical / Spiritual, Foreground / Background, Right / Left, Conditioned / Unconditioned reinforcement to name a few.

Correct me if I am wrong, but you believe that having the two sides working together in harmony would help the trader in the trading process or for that matter in any human process. You have found the Trading Tribe methodology as a way to get there.

In the sixties they called groups like the Trading Tribe sensitivity training. In the seventies they called them T-Groups. I don't know what they call them now. Do you see any differences between them and your methodology?

I was a Psych major until I read the debate between B.F. Skinner and Carl Rogers about psychology, determinism and Free Will. You might, if you haven't read it already, enjoy a book by Carl Rogers called "Becoming a Person". It talks about communication between one's conscience and unconscious sides, and with other people.

 

I liked Rogers because he wasn't afraid to test his theories and get rid of them if their results didn't fit. One might compare it to back-testing of a trading system. Rogers has also written books about T-Groups. Other authors like Alan Watts, Richard Bandler, John Grinder, Freud, Anthony Robbins all share your CM/Fred model in one way or another.

 

However, some psychologists like B.F. Skinner and other behaviorists only look at behavior and think the CM/Fred split unnecessary baggage.

For the record, I see myself as a great trader yearning to get out of a terrible trader's mindset. I love to trade, but my CM limits me from doing so - to keep me out of the "poor house"! I have made more money playing blackjack than I have every made trading the markets. Perhaps your Trading Tribe methodology would help.

Would you be willing to "back-test" your Trading Tribe methodology? If so, how would you do it?

Thanks for your FAQ,

See Trading Tribe Process, at Other Methods

 

In the case of yearning to get out, you might locate the feeling of being trapped, and allow Fred to present it fully to CM.

 

Feeling trapped in a position can lead to the Drama of panicking out of your winners.

 

You can get a sense of the how TTP works by reading comments from contributors who are experimenting with it and reporting back.

 

 

 

Some yearn to get out ...

 

some to get in.

 

 

 

Clip: www.sengers.ch/special/trapped.jpg

 

 

 

Sat, 24 May 2003

 

Control

Ed,

I believe your position on trader feelings is: that these must be expressed, "or else"; and that for full expression to occur, other people (and ideally a structured process) should be utilized.

Who were your own people and what was your own process as you worked on successfully expressing your own trader feelings? What I am getting at is, there was no one pioneering TT when you did this stuff. There was no model to work from, I believe.

Or was there?

Did you attempt to use journaling of another self-referential (singular vs. social) technique or process to express?

If so, why do you think it failed?

If not, how did you know to go directly to expressing to others?

 


-----

 

I believe you must have deeply examined your own feelings and motivations to begin and continue to develop and maintain FAQ and develop TT.

If so, could you share these and also mention any relation or basis your feelings and motivations might have ... to the zero-sumness of trading.

Also, what did you think you would experience of leading TT and FAQ compared to what you actually have experienced to date.

The Trading Tribe avoids the use of "must", "should be", "must have" as these tend to invalidate feelings and shut down communication from Fred to CM.

 

Ideas about what markets "should" do can be expensive.

 

You might examine your feelings of wanting to control conversations, and avoid the unpredictability of intimacy.

 

 

 

Control Replaces Intimacy

 

 

Clip: www.pa.msu.edu/gtour/

 

Sat, 24 May 2003

 

Personal Growth


Dear Mr. Seykota,

Thanks for posting my last email on your FAQ.
Your comment, "If you are the amender, you might have some feelings about projecting yourself in public, letting others know who you are", pinpointed a message from Fred inside me - before CM realizes.

 

Probably Fred wants me to express myself more in the public but my CM is blocking me in some ways. So is this "AHA"?

 

Indeed, it is a great experience. A question came up in my mind, what if somebody does not want to be mirrored or feel very uncomfortable during the Trading Tribe Process? (too stubborn / aggressive?) Or they do not want to be exposed about their feelings?

 

Does that mean they should not join the tribe?

After all, I suppose the whole point of personal growth is when CM listens to Fred. Is that right?

Regards,

See: Trading Tribe Home Page and Trading Tribe Process.

 

-----

 

The Trading Tribe follows trends in the markets, trends in feelings. It supports people being how they are, does not tell people what they should feel or do.

 

People who are not ready for TTP generally do not join a Tribe.

 

 

 

Bashful

 

Some are Shy and Stay Distant

 

Others bring their shyness to the Tribe

as an item to experience.

 

Clip: www.xs4all.nl/~hwalther/

images/opc-bashful.gif

Fri, 23 May 2003

 

Your Metaphor


Ed,

If you have one, what is your trading metaphor?

If you don't, what is trading a meta for?

Here's one:

 

The Path

 

A track or way.

A road to a purpose: path to wisdom.

The route along which something travels or moves: path of a trader

A course of action or conduct: path of learning.

 

 

 

A Path at Harbin Hot Springs

 

 

Clip: www.harbin.org/links.htm

Fri, 23 May 2003


Lake Ratio

Dear Ed,

For years I've been fascinated by the graphic display of quantitative data and believe such displays will improve greatly as inventive minds use ever-more powerful computers.

 

Your Lake Ratio is an elegant and practical improvement over Sharpe Ratio.

To determine the Ratio, the draft states "volume of lake divided by volume of earth underneath". I don't see how that could be accurately calculated, as I believe the volume of each would vary depending on the graph settings. Possibly do you mean "depth of the lake divided by the depth of the earth underneath" ?

 

Or do I need to spend more time at Lake Tahoe to fully understand?

The Lake Ratio measures volatility over the history of the account. Plot the equity on a scale starting at zero.

 

The Trading Tribe goes with the flow of feelings, with the flow of the markets. Understanding is optional.

 

You might consider Lake Tahoe as a nice place to resolve your need to understand.

 

 

You might like to be a shoe.

 

Specialist in under-standing.

 

 

Clip: http://jobsearch.nmu.edu/

students/articles/dress/

Date: Fri, 23 May 2003

Emotional Intelligence


Daniel Goleman has an "emotional intelligence" test. I took it and flunked it! Yeow. This was 2 years ago. The net effect of failing has been to caution me about my emotional frame of mind. I check myself a lot.

Well, I'm off to meditate...

You might take the actual physical feelings you associate with flunking tests, particularly the items you miss, into your meditation. 

 

If you try to ignore Fred, you might wind up taking tests in the markets

 

 

Failing the Diet

 

Suppress the Feeling of Hunger

and Fred Still Finds a Way

 

Clip: www.dietriot.com/fail.htm

 

Date: Fri, 23 May 2003
 

Trading Tribe Meeting

 

Hi Ed,

Thanks for the enlightening meeting yesterday. I saw firsthand how the Tribe and each individual reflexively help each other accomplish magical changes, with your guidance to keep it on track.

I see teamwork gets things done better and look forward to next meeting.

 

Regards,

 

 

Teamwork

 

Yes

Fri, 23 May 2003

 

More on Inflation


Ed,


Thank You.


Thank you for the picture of the squirrel. Laughter is good medicine.

 

Also, big, big kudos for your definition of inflation. I hear so called experts claim over and over that prices are going up, and blame it on inflation.

 

Prices can go up or down for a host of reasons that all figure into the supply/demand curves. The prices of computers and other electronics have been dropping for decades.

 

I never hear people blame deflation. Money is a medium of exchange and printing too much relative to production causes inflation.

Governments, like people, tend to inflate a bit as they mature.

 

 

 

Some Forms of Inflation

 

depend on hot air.

 

Clip: www.abc.net.au/rn/talks/

bbing/specials/kabul2002/gallery4.htm

Fri, 23 May 2003

 

Childhood

Mr. Seykota,

I found your posting "Rules and Authorities", seemed to hit me directly. You say "When CM doesn't listen to Fred's feelings about childhood trauma ... Fred keeps setting up dramas to get CM's attention".

I find myself acting out these dramas nearly every day in my current job, but can't seem to make the connection. Although I'm very capable to perform well in my current job, I seem to find ways to ensure my failure. I will commit to ambitious deadlines for projects, and fail to meet them consistently, and apologetically.

 

Afterwards I feel terrible about myself and vow not to do the same thing again, but then the cycle repeats.

 

I procrastinate on working on almost every task, which always leads to a few very stressful hours or days prior to giving project updates to others. The strange thing is that I know the cycle, but I can't seem to break myself from it. I actually have a very understanding boss who always gives me the benefit of the doubt when I perform poorly, but I just continue to push the limits further.

I've always rationalized my poor performance by telling myself that I'm just bored with my job, and I'd rather be spending my time learning to trade / testing my ideas. The ironic thing is that if I were performing up to my capabilities in my job, I would probably already have been able to accumulate enough money that I would be able to trade professionally (assuming that my ideas work/ and I'm compatible with them).

I suppose that I did have a traumatic childhood, I was abandoned by both of my parents when I was 6 years old and went through several homes following that. But I really can't see the association between this and my current problems. Any thoughts, suggested readings?

Regards,

Likely you have very deep feelings about trusting other people.

 

 

 

Here We Are, Joined Together

 

now, again, and forever.

I see you reflect love's beauty

You make my life so worthwhile,

my Child

 

 

Clip: www.christian-thinktank.com/trust.gif

Lyrics: Child (c) Ed Seykota, 2003

 

Fri, 23 May 2003


Feelings About Not imposing

See:  Reference

OK,

For the last two days, I've been trying to feel the feelings about doing it all on my own. Using The Process has been very difficult because I had a hard time feeling the feelings. I tried and tried, and tried some more, and still ... nothing. I then thought about how to logically identify the source of the problem by working backwards:

1. Seykota says, "You might take a look at your own feelings about wanting to do it all on your own - not impose on others." I thought I was being polite - what was that all about?

2. Why do I dislike imposing on others? Come to think of it, I rarely ask for people to help me at work and at home - they always come and ask me for help. How did Ed get that one? And is this an ego / pride thing?

3. Was I brainwashed to not impose on others? Is it rude? Asian culture teaches us to not impose / be an imposition on others, and to be unassuming.

4. When I was young, I remember my parents telling me to not ask so much of others - it's rude.

5. Even though tracing it back this way seems logical .. somehow, that feeling of imposing is still there ...

Unlinke the Aha moment I experienced about the 4th grade English class and commitment, it's very hard to resolve this imposing issue by myself. THAT is when I realized that the problem has surfaced again! I just said, "It's very hard to resolve this imposing issue by myself."

Now I know how the Trading Tribe Group setting can help: by mirroring the feelings of an individual, the group becomes very supportive, all participants know and embrace the same feelings, and it becomes easier for the person to feel the feelings.

 

It was very very hard to feel the feelings on my own, so I am looking forward to our first meeting. I haven't felt the "true reason" yet for this issue, but I'm sure it will eventually come to light ~

When you fully experience the feeling of wanting to do it on your own, you may realize the importance of a great team in helping you, well, do it on your own.

 

 

 

Racing

 

A driver is as good as his team.

 

Clip:

www.nd.edu/~ndracing/team/team96.html

 

 

 

Thu, 22 May 2003

 

Gambling

Dear Ed,

After 8 yrs trading pa (last 2 full time) I am having difficulty in breaking a pattern i.e one where I am consistently profitable then end up blowing the majority away in some sort of gambling frenzy.

 

When this occurs I go back to certain books and try and find out why I do this, one passage I read is your answer in wizards where you speak about everybody gets what they want.

 

On a conscious level I definitely do not want this to happen yet understand that the consistency of these blowouts means I am fulfilling some other need.

 

How do I get to the root of the problem, I did see a NLP practitioner some time ago and thought that would work and maybe it helped but I would very much like to solve this once and for all.

take care & good luck

The Trading Tribe Process gets CM listening to Fred. This breaks the pattern.

 

In a holistic world, the question, "why" has no meaning.

 

You seem to have some deep feelings about gambling. You might ask your Tribe to help your CM experience Fred on these matters. 

 

Once Fred informs CM directly, the need for drama disappears and the feeling transforms into its positive intention: perhaps, to warn you about gambling.

 

 

 

Gambling to the Max

 

Fred finds a way

to get the Message to CM.

 

Clip:

www.midgard.liu.se/~b97gorkl/smuts.gif

 

Thu, 22 May 2003

 

Bright Bulb

Ed:

Would you recommend a good back testing site or software that is user friendly?

 

My assistant is willing and able but not the brightest bulb, so we need something REAL simple.

You may have some feelings about abusive language, offending people, people leaving you.

 

 

Don Rickles

 

Mr. Nice Guy

 

Clip: www.vegas.com/shows/rickles3.jpg

Thu, 22 May 2003

 

Process

Dear Ed,


I have done a few sessions of the Process with friends and I have two questions: 


1. How important the receiver's capabilities are ?

 

If I come up with issues that are "too much " for the receiver, if the receiver is overwhelmed by the feelings, can he/she stop performing the assigned task properly by skipping mirroring certain statements and feelings? In other words how important is the training of the receiver(s) and how important it is that they do not have the same issues as the person in the hot seat? 


2. I notice that when in hot seat, constant mirroring throws me out of my continuum of feelings, it is interrupting.

 

I wait for the receiver to finish mirroring before I can move on. What can you suggest as far as frequency of mirroring ? 


Overall, the Process works, it does something. I am not sure where it is taking me, but I plan to stick with it as long as I feel is necessary. 


Do you need help preparing the program leading to mastery of the Process ? Can I do anything to make it available quicker? 


Thanks for your help

Receiving is critical.  The receiver keeps the process alive - or kills it. 

 

A receiver can get Fred complete in a couple of minutes ... or prevent it for hours.

 

Working with the Trading Tribe and fielding FAQ questions is helping develop materials. 

 

Mastery seems to come to those who practice sending and receiving with masters.

 

 

 

 

Washington Huskies' Cody Pickett

 

Completion depends on both

the sender and the receiver.

 

Clip: www.washington.edu/

alumni/columns/sept02/briefings_football.html

Thu, 22 May 2003

???


Mr.Seykota

Gentlemen

Autor will evaluate possibility of diversification
in financial future as EN,MCT,LFT

Dissadvatage can be :

1. Financial futures market give limited opportunities vs. stock market (a lot of different positions)


2. Return is not better by traders with comparable qualifications.

But what of advantages can have financial future market vs. Stock market ?


1. Monday -Friday trading without stop ?
Is financial future market active overnight ?
Exist good oportunity overnight ?

2. More margin ?


3. Anothers ?

It's crackers to slip a rozzer the dropsy in snide.

 

 

 

1952

 

 

2003

 

 Potrzebie Axolotl

 

Etaoin Shrdlu.

 

 

Clip: www.collectmad.com/madcoversite/

Thu, 22 May 2003

 

Application to Incline Village Trading Tribe

Dear Ed,

It makes sense a master trend trader would live in "Incline" Village ... during up-trends at least.

I want to join your Intentional Community, as I need help in emotional aspects of trading, and wholeheartedly can contribute for the good of the group.


Last night I spent hours reading your FAQ. I am awed. Driving home, reflecting on two concepts turned my parasympathetic nerve system inside out:

 

my habitual recurrent hyperactive trading and resultant sadness.

 

my profound regret over missing signals-trades-profits.

 

Shuddering tears poured out. All those sad situations flashed in front of my face. I embraced and experienced. I feel a "spell" broke, one which I no doubt cast on myself.


I can be at a Tribe meeting as soon as you say ok, including tonight.

warm regards for sharing your gifts,

OK.

Fri, 23 May 2003

 

The Tao of Trading

Dear Mr. Seykota,

I read about you mentioned "Going with the flow" and I had very deep feelings about this concept. The philosophy of trend-following style trading is surprising similar to what Lao Tze's philosophy in his "Tao De Jing".

 

I wish to share the following wisdom amended from the original passage:

"The best of trader is like water,
Which benefits all trends, and does not contend with
them,
Which flows in places that others disdain,
Where it is in harmony with the Way.
So the trader:
Lives within nature,
Thinks within the deep,
Gives within impartiality,
Speaks within trust,
Governs within order,
Crafts within ability,
Acts within opportunity.
He does not contend, and none contend against him."


Kind regards,

The identity of the amender is ambiguous. SVO-p grammar supports  identifying the subjects. See: Trading Tribe Process.

 

If you are the amender, you might have some feelings about projecting yourself in public, letting others know who you are.

 

 

Who is that Masked Man ....

He offers 30-year mortgages at 2.5%.

 

That, my friend, is the loan arranger.

 

Clip: www.tysknews.com/

images/Lone%20Ranger.jpg

Thu, 22 May 2003

 

Following a System


I am using a fixed fractional position sizing method. If I'm trading $500,000, then my optimum position size is Equity/10 or $50,000. I work my way up to my optimum position size through pyramiding. I take an initial position of $10,000 then as the stock increases (for longs) by 1 ATR, I add another $10,000
until I get to $50,000(assuming the stock continues).

I use a 2 ATR stop.

This works, and quite frankly don't really follow anyone or anything else.

Just wanted to share my strict discipline of
entry, adding and exits.

Everything works sometimes and something works every time. FAQ does not endorse any particular systems. See Ground Rules.

Thu, 22 May 2003

 

Inflation

Dr. Ed -

In your Market Wizards interview you commented that inflation was how the "old order" was swept away. As I was in diapers during the 1970's, what was the "old order" that was swept away during that period of inflation.

Inflation is increase in the money supply. Prices rise in response to inflation.

 

1970 you can buy a new car for $2,000. 

 

For examples of Sweeping Away, check the German hyperinflation and the recent events in Russia. 

 

 

Have I Got a Drama for You

 

Just vote for me and I'll keep raising the debt limit and we can make life more fair.

 

Clip:

www.mystandlace.com/images/broom.jpg

Thu, 22 May 2003

 

Nothing Works

 

Dear Mr. Seykota,

My name is [xxx] and live in Germany.

I am trading the market since 1997 (Dax, E-Mini), but I am not successful. I am always losing.

I read a lot of books and took a lot of trading advice via internet etc. I also took a trading course by [xxx], nothing help me.

Maybe I am stupid for trading?

But before I give up my trading career, I want to try give me one chance more (or again).

I have lost my believes and my trust in me.

So I am writing to you in hope, that you can help me.

If you offer some teaching material, advice, seminar or personal coaching it would be very
kind of you, if you could tell me the details (price, description, etc.).

With kindest Regards

P.S. Sorry for my bad English

You report feeling unsuccessful, unworthy, stupid, etc. You also seem willing to follow other's advice even with evidence this does not work.

 

If you have unresolved feelings of inadequacy, and are unwilling to experience them, you can count on Fred to arrange for you to keep acting out Dramas such as the ones you mention.

 

Joining a Tribe or forming one, and experiencing the feelings of inadequacy pass from Fred to CM ... might be simpler than having to act it out over and over.

 

 

CM Catches the Pass from Fred

 

so Fred does not have to set up dramatic end runs.

 

Clip: www.clayton.k12.ga.us/

schools/006/cheer/Candid%20Photos/

catching%20a%20football.gif

Wed, 21 May 2003

 

Enabling (myself?)


"You might see if Toxic Parents (see the Books Page) rings a bell for you.

If so, you might take your feelings into The Trading Tribe process."

Sure, it does. Nevertheless I think the title is a bit too strong. "Toxins" usually come from generations and, as always, I prefer to look for the positive aspect of everything first.

 

As the old sage said: "In every stone sleeps a crystal." Anyway, I think we might reconcile a strict upbringing with healthy attitudes towards our children, so as not to incur in emotional abuse and its unpleasant consequences. I'll pick a copy for me as it might help me cure my own emotions.

I have had very positive experiences when dealing with feelings, either through my previous thread in another community and through your FAQ. In personal relationships too, sometimes we find people who lend great support and help us achieve our best.

 

This is the case, for example, with a female coworker who's been a great friend and through our friendship helped me a lot in the "Process", in a natural and spontaneous way. In this sense, I think intentional communities are very positive.

"Your anecdotes are consistent with co-dependent enabling behavior.

You may have deep feelings about wanting to save people, make excuses for them, get meaning by being the strong one, etc."

Could you elaborate a bit more on this, in light of the Process? Thanks.

You might look up enabling and co-dependent to find their meanings in the context of relationships.

 

You seem be uncomfortable looking at "negative" aspects. The negative label is part of your way of not experiencing feelings. A Tribe can help you experience this tendency and release it.

 

Your co-worker sounds like a healthy and supportive friend ... you might ask her to pace your experience as you explore your feelings ... you might start with your feelings about judging feelings as good and bad.

 

 

 

Some People Can Experience A Grapefruit

 

and notice its color, flavor, texture, temperature, aroma, sweetness ...

and others just decide it's good or bad.

 

Clip: floridaindianrivergroves.com/

_borders/grapefruit.jpg

Wed, 21 May 2003

 

Wining & Losing Feelings

Dear Ed,


When Fred eventually gets the message through and I feel the feeling, is it enough to do it once or repetitions help?

 

Maybe, if repetitions occur, it means the message is not fully understood or received?


I have analyzed my feelings about wining and losing and came to the conclusion it is feeling of inferiority that I want to mask and avoid. Deep inside I feel weak and a loser, on the outside I win. Wining requires ruthlessness in my case. I have to see the opponent as an enemy not worth any kind of compassion. And I actually enjoy it, I become like an animal, predator, something primal awakes in me and I go with one objective in mind-win.

 

I define what is to win, when to stop at a profit and loss and stick to it. What bothers me is that feels so ... (I am having trouble exactly describing it right now) ... so inhuman, or so unfair to others ... I do not want the world to be based on this kind of behavior. Ha, maybe I am afraid of being simply on the other side and getting beaten?

 

But there is some kind of animalistic satisfaction after I win. Maybe it is only relief that I did not lose? I feel confused about the subject... I need to dig deeper till it resolves itself.


The feeling of inferiority repeats itself despite of having felt it . What does that mean ?

Thanks for your help.

Fred's unexpressed feelings tend to nest in tangles and knots:

 

feeling inferior

wanting to mask feelings

wanting to see opponents as enemies

wanting to feel like a predator

feeling guilty about fairness

The Trading Tribe encourages fully experiencing the entire system of feelings; this might involve returning to feelings recursively, like pulling apart the strands of a knot.

 

 

The Essence of the Knot

 

is knot feeling your feelings.

 

Clip:

www.u.arizona.edu/vislab/images/tangle.gif

Wed, 21 May 2003

Off to the Lake


I would like to say the Lake Ratio provides a simple and concise breakdown of all drawdown conditions that other methods don't account for. This rule of thumb, as you refer to it, is simple, and highly intuitive. Fits me.

Can you please present the precise math involved in calculating the Lake Ratio?

Always thankful of all your insights.

The Lake Ratio is a rule of thumb; you can derive a formula for it by inspection.

 

You might have some deep feelings about needing precision - not being able to proceed on incomplete information.

 

 

Kids Jumping Into a Lake

 

even without knowing the precise temperature, and dissolved carbonate content, in parts per million.

 

Clip: www.watertalk.org/

forum/lake-jumping.jpg

Wed, 21 May 2003

 

No Spoon

Ed,

Do you remember the film "Coming to America?"

There's a scene in the barber shop when the old white guy tells a story about eating soup in a restaurant. Perhaps you remember it. It seems to be a humorous parallel to the trading tribe process.

Restaurant Patron: "Taste the soup."
Waiter: "I don't wanna taste the soup."
Patron: "Taste the soup."
Waiter: "But, I don't wanna taste the soup."
Patron: "Just taste the soup."
Waiter: "Why do you want me to taste the soup."
Patron: "C'mon, just taste the soup."
Waiter: "I can't, there's no spoon."
Patron: "AHA*..... AAAAHHHHAAAA*!!!"

Murphy lacks a spoon; he could get one by asking for it.

 

The incident, however triggers some feelings Murphy has about about not getting what he wants (irritation, inferiority, sadness) which he likely does not like to feel.

 

So Murphy's Fred arranges a drama in which he puts down the waiter; the waiter sets up his own compatible drama by not setting the table properly.

 

The Trading Tribe Aha is not a big noise during the execution of a drama - it's a subtle release of tension as Fred finally succeeds in informing CM about an experience.

 

 

 

Excuse me, sir.  I need a spoon.

 

Clip: www.paramountcomedy.com/

films/images/coming2america/mainPic2.jpg

Wed, 21 May 2003

 

Cleaning Up

Dear Sir:

Thank you for your FAQ website. It has been a big eye opener.

With regards to repressed feelings:

 

how can I know when they are all cleared?

How can I distinguish between a "drama" and just life?

 

I suspect I have a few dramas going on in my life, but how can I be certain?. Is it always safe to express anger during a tribe meeting during the clearing process?. I suspect that I have a lot of anger stored within, and wish to know how to safely release it to get to one or more AHAS.

Thank you for your attention.

Yours sincerely.

When you finally get to the center of the onion, you get another onion.

 

It's all drama and it's all just life.

 

Trading Tribe Customs:

 

You may express anger, by reporting the feelings (temperature, size, location, associating emotions, etc.)

 

You may not express the drama that Fred uses to get CM's attention (throwing chairs, insulting people, breaking things). Violence is a drama Fred entrains when Fred cannot express anger.

 

You might consider the positive intention of anger - hint: the positive intention of thirst is to make sure you have enough water in your body.

 

 

Feelings Have Positive Intentions

 

Clip: www.superlaugh.com/fun/thirsty.htm

Wed, 21 May 2003


Trading and Poker

What is your take on the link if any between the modes of thought that lead to quality poker play, and quality trading play?

Risk Management.

 

Wed, 21 May 2003


Fox on the Run

You say that for the process of dissolving you need someone there? You cannot do it alone? How come?

CM's nature is to do whatever it has to do to avoid Fred's communication about your issue.

 

Putting your own CM in charge of the Trading Tribe Process is promoting a Fox to take care of the Chickens.

 

 

 

Sure thing, no worries.

 

Of course I'll take good care of them.

 

Clip: http://pantransit.reptiles.org/

images/1998-03-10/close-fox-apr2.jpg

Wed, 21 May 2003

 

Harem Management

Dear Sir Ed,

Thanks for putting Karachi. Pakistan online.

I believe Successful Trading is going against human nature. A trader rises above natural tendencies, faults.

I believe Trading is amazing journey of Self- Discovery and Change for better. As one change the environment and the past only change him or her selves.

I believe Trading Tribe will have a larger impact on all of us involved it will change, for better our Psychological make – up and to change that is difficult and I believe only a trader like you can accomplish this with all your mentoring, wit, straight forwardness, success, wisdom and confidence you bring to all of us.

I had known that you had the talent of boiling downs complicated thoughts into simple sentences, but your internet surfing skills and content picking talent I just got to notice. It amazes me. How you find all relevant images and captions from the net for answering nearly all the questions.

I wanted to ask you is it true and necessary to have more than one system to trade with for different market conditions and market itself.

 

A collection of them that if one is not dong well you go for the other one to get consistent performances like when market moves in ranges one shift from a long-term trend following system to one suited for shorter timeframe etc.

I read that best traders have more than one system to trade with it. Do you find it necessary? I am asking you this because I always believed that best trader have to and do, sit and wait for the right market conditions suited to their trading methods or until the right low risk, high return idea comes up and it only then they trade did I get anything wrong in here.

I also wanted to ask you it said make a good method and follow it but what is meant by know the exceptions? Now as we trade the trends how do we know the exceptions or when markets moves in extremes, but is it not predicting and second guessing one system? or we simply have to use our common sense which only looks simple in the hindsight

When Sir Ed we could pick your book off the shelf?

If you have several sub-systems and a systematic way to combine them, then you have one overall system; you can even simulate it to find optimal risk management parameters.

 

If you do not have a systematic way to combine them, then you are setting up a nice playground for Fred.

 

 

 

You can play on the ladder, the swing and the slide ...

 

and go back and forth  between them

whenever Fred wants attention.

 

 

Clip: http://www.parkvista.com/fun.htm

 

 

 

Tue, 20 May 2003

 

Quick ... Gimme the Trade Secret

 

FAQ - A Bit of Your Experience, Please

Hi Ed:

Since you have many years of trading experience and testing of systems, I would like to get an answer to a simple question.

Based on your research, which trend-following method have you found to be more profitable? An "always in the market" system or a system that is out of the market (flat) when trend momentum has diminished?

I hope you will part with this trade secret because I feel that it is a very fundamental and key component of a trading system. Through your experience and wisdom (or is that "wizardom"), I expect that your insight will save me years of "reinventing the wheel" (trading system).

I appreciate any opportunity that I may have to learn from you, including your website.

Sincerely,

A man calls up a tire shop and says:

 

"I want to ask a simple question: which tire is the best."

 

He doesn't tell the salesman what kind of car he has, or what kind of driving conditions he expects, or the price he has in mind.

 

The salesman simply listens.

 

The man goes on, "I want to know the Trade Secret about:

always-on, year-round tires

or a summer and winter set."

 

 

So When You Figure Out

What You Want

 

we probably have it in stock.

 

Clip: http://money.cnn.com/

2000/11/02/home_auto/q_winterize/

Tue, 20 May 2003

 

Enabling

 

see Life Unfairness


Ed:

As I read the "How to use 'fairness' to get free stuff" technique I acknowledge I have been exploited a lot in this way. I just let the pain flow and I have had many insights. Thank you very much, Ed.

There is, however, an interesting link between "Life unfairness" and my previous post about getting into power struggles with girls I would fall in love with.

 

I notice I have been linking love with pity and I am usually attracted to girls whom life has been "unfair" to.

 

In a rather pathetic way, I have been trying to be the hero who spare them from life's unfairness. However, in a rather harsh and rude way, I have always been told that they do not care about my intentions.

 

Actually, they are usually interpreted as unwanted interference and self-interest. In a vicious circle, as this has been usually in a harsh way, I would feel badly treated and resented towards life's unfairness, and the drama would repeat again. (--Oh, my Fred, don't do it again. Alright, that's O.K. You're right. I give up. :-)

Thinking about starting a community in my area. Please let me know what you think.

Your anecdotes are consistent with co-dependent enabling behavior.

 

You may have deep feelings about wanting to save people, make excuses for them, get meaning by being the strong one, etc.

 

Sometimes, when an alcoholic reforms, the enabling spouse dumps the reformed alcoholic and finds another practicing one.

 

You might see if Toxic Parents (see the Books Page) rings a bell for you.

 

If so, you might take your feelings  into The Trading Tribe process.

 

The Trading Tribe supports the formation of Tribes and Intentional Communities. See Tribe Directory Page.

 

 

Enabling is a Drama Too

 

When Fred and CM communicate,

drama disappears

 

Clip: www.funnyclicks.com/

funnyclickscomicgal2/booze.jpg

Tue, 20 May 2003

MA Question

Ed! Another question from your frequent fan...

After thoroughly studying Technical Analysis over the last few years, via reputable textbooks, online discussions, learning by doing, etc, I have observed that:

Probably the only way to assure profits is to follow the trend (surprise), both up and down/long and short. After researching, trying, back-testing, etc, probably the majority of the TA indicators, tools, etc, that exist, I keep returning to Moving Averages.

MA's are simple, they work, they trend, you can't break them ... indeed, some stocks are very haphazard and volatile, but some respond quite nicely to MA's. MA's have helped me identify all rallies/declines in the indexes, with the fundamentalist investor press only picking them up weeks later.

Maybe because MA's were "discovered" in the 1930's by Richard Donchian, and are not the latest gee-whiz, high-tech gadget, is why they are not in the first chapter of all the "hot" trading books and magazines.

Yet again, MA's WORK. They make me feel comfortable, and I like them. Did I mention they trend follow?

Ed, I do not want to know what I should do. What I should do is do what works for me (MA's.)

In Market Wizards (MW) you mentioned Exponential MAs as something you used (to what extent or success I do not know) in the early 70's. You also state you were intrigued by Donchian's works and his 5/20 crossover system. In MW, you also stated that you use end-of-day data.

 

Furthermore, in Van Tharp's book "Trade your Way to Financial Freedom" you are mentioned as having taught a college course using a 10 and 20 MA system. Based on these observations, I can only conclude that you use MA's to some extent in trading (correct/incorrect?)

My question to you is, in your professional trading experience, do you share similar views as I do about MA's and have you put them to extensive use in your own trading?

Ed, thanks and take care of yourself.

Exponential Averages compute per:

 

EA(t) = EA(t-1) + (1/TE)[P(t) - EA(t-1)]

 

Moving Averages compute per:

 

MA(t) = sum[t->T+1](Px) / TM

 

MA evolves by discarding the earliest price while EA evolves by discarding the average price. To equalize ramp tracking, use:

 

TM = 2*TE - 1

 

A 5-day moving average

tracks a ramp the same as

A 3-day exponential average.

 

With this adjustment, MA and EA seem to give similar results.  The "right" system for you depends on your psychology.

 

If there were one right car, everyone would have the same one.

 

 

No Need For So Much Variety

 

Everyone Can Just Pick The Best One

 

-----

 

Your story about the college course:

 

is not in SVO-p syntax

does not identify the reporter

is apocryphal

 

Clip:

www.farkman.com/assets/goodies/cars.jpg

Tue, 20 May 2003

 

Koan



What about checking the feeling of wanting to
experience feelings?

Very nice!

 

First, experience the feeling of wanting - lack and incompletion - it disappears.

 

That leaves the feeling of experiencing feelings - the light joyous nothingness of the persisting moment of aha.

 

Trying to keep the aha going - just takes you back to the feeling of wanting.

 

So goes the cycle.

 

 

Moving and Being Stuck

 

Define Each Other

 

 

http://www.tk421.net/gallery/