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May
18-24, 2003
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Questions
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Answers
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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
|
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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
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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
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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/
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|
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
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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
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|
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/
| |