June
1-10, 2004
Questions
(Quotes
from Ed in Red)
|
Answers
|
Wed, 9 Jun 2004
Update on Miami
Tribe
Hi Ed,
The Miami Tribe is experiencing superb results. We have more focus than ever
to the Process. Additionally, we now have 2 new members (totaling 6). These
two ladies, not surprisingly, are very much innate with the Process. It
feels wonderful to have these two ladies be part of our community and extend
our support group.
From reading the Workshop feedback, we are glad to see that the workshop
adds more clarity to the Process for those who are just restoring their
natural capacity of TTP. Stay with it Tribe Members!
Keep up the great work Ed! |
OK.
|
Wed, 9 Jun 2004
Worms
Hi Ed,
On Tuesday Jan 6, 2004, you respond to an FAQ with the following:
Ed Says: Beginning to experience some deep feelings,
and then not following through to resolution, may awaken and re-energize
your drama. If you get your can of worms open and don't put them to good
use, you may need a larger can to re-contain them.
Will you define what it means to not follow through on the hot seat? This
seems to be a potential Achilles heel for senders. Also, will you explain
what you mean by "putting the can of worms to good use."
Thanks |
Not
following through means getting a Form partially developed - and then not
going all the way to accepting the experience.
When
you accept your Form, you find its positive intention, and see ways to put
it to good use.

Worms
and Forms
all
want free expression
Clip:
http://www.niehs.nih.gov/
kids/worms.htm |
Wed, 9 Jun 2004
Missing Position
Hello Mr. Seykota,
I would love to work with you.
Do you have any positions available for a trader trained in literary
criticism, law, and yoga ?
I worked for 3 years with a day trading firm in NYC and left when I faced
and acted on the fact that it suited neither my capital nor my psyche.
I have read much
of what you have written on the subject of trading, and would like to learn
more from you in person and on the job.
Thanks for your time. |
I
am not clear, from your application, the type of services you might like to
perform. |
Tue, 8 Jun 2004
Asymmetric
Trading
Regarding: 5/31 FAQ Shorts:
I find ... asymmetric long / short belief very interesting, and I'd love to
hear more about it. |
Try
Google. Warning: too much math-turbation can lead to trend
blindness. So don't count on it or you could become a prime
candidate.
|
Sat, 5 Jun 2004
TTP Spanish
Tribe in Miami
Hi Ed:
We feel that it
may be a good idea to start a group applying the principles of TTP in
Spanish. I'm writing to ask for your opinion and if you come down here, to
drop in and enlighten us. so far we have four members with the intention of
closing the group at eight. I would continue with the present group and run
the Spanish group on Tuesdays. Your feedback is important to us, so when
possible, let us know what you think. good talking to you.
|
Felicitaciones!
Buena suerte con su tribu. |
Sat, 5 Jun 2004
Programming
Hi Ed,
it was a long ago I read something about programming here. I believe it's a
good thing to update the list at:
http://www.seykota.com/tribe/
Reference/books/index.htm
with some titles
on Object Oriented Programming and C++ (those you consider the best).
Programming is a
great educational task: you learn to adapt yourself to the answer the
machine gives you, to take responsibility for the result, to change your
behaviour when the things don't work, to understand that, before all, is
your attitude to make the difference and after, only after, your skills ...
I always follow you and the tribe, thank you for the time you spend and the
support you give.
|
Follow
the link to resources, above. |
Fri, 04 Jun 2004
Toxic Parents by Susan Forward
I spent all of yesterday reading this book. What an intense day it was! I
did the checklists on what I feel and what I believe in my relationship with
my parents and I was shocked when I checked off most of the items. I even
had to add some to the list! To help me fully realize and see the feeling
and believing part I wrote them on paper. I went from sorrow to fury to
outrage to annoyance to disbelief to shock and so on and so on ... in no
particular order. I even got a headache during this time. After reading the
book I now realize that my recurring headaches may not have been caused
by lack of sleep but may be caused by repressed anger.
This book has certainly cast light on a lot of issues in my life. For
example, I find it hard to make major life decisions without first
consulting with my parents.
I need their
approval first before I can proceed with my "grown-up decision".
I've only just realized how fiercely competitive I've been with my siblings.
I always had to be the first to do something: the first to get a job (at 13
years old?!), the first to graduate from high school, the first to graduate
from college, the first to buy a home, the first ... well, you get the
picture.
If given the
opportunity I would probably be the first to wipe my father's ass. All
because I want their love and attention and a twisted belief that if I work
hard enough then my parents will be happy and proud of me. It brings tears
to my eyes to think that my siblings may have understood what I was trying
to do but they still gave me their unconditional love and support. I feel
ashamed realizing that I've put my own needs ahead of theirs. I realize
there is a lot of realizing going on here. Is this what you mean by having
an Aha experience?
Thanks for allowing me to share this with the Trading Tribe team. Yesterday
was an emotional roller coaster ride for me. It's not so bad today and I'm
trying very hard to feel all the emotions.
Take care, |
Your
headache might be a good entry point for TTP - maybe fantasizing about
making a decision without consulting an authority.
The
typical TTP sequence:
Picking an entry
point.
Developing the
Form.
Intensifying the
Form.
Abreacting the
Form.
Identifying the
Form's positive intentions.
Insights
(AHA's) typically occur during and after the abreaction phase.

Your
Headache
might
be trying to tell you something.
Clip: www.terriblemovies.com/
cards/ |
Thu, 03 Jun 2004
Congo Tribe
Mr. Ed Seykota,
I live in Likasi little town located in the South of the RD Congo ...
I understand the importance of TTP for our life and consequently our
trading.
I want to open a tribe here in Likasi.
I have no experience in TTP meeting and little background in psychology
except the terrible experience of being a disciplined trend follower
(experiencing the heat zone during my 6 years of trading).
I am aware that I
am my only enemy in the market and the need to make peace with that guy if I
want to become a successful person in life and in trading . I feel the urge
for TTP meetings.
Is it suitable to conduct TTP meetings via the internet with some sort
of communication software?
This could give us a bit of experience to understand and start this African
tribe.
As you wrote one day "learning by watching others and by doing" is
it possible virtually ;<)
as an example:
My friends and I ... follow sometimes seminars organized by the CBOT
presented by known traders.
I wait impatiently to read your book..
I thank you for what you do for us.. answering all this FAQs sharing your
great wisdom and experience organizing workshop and making personal
meetings.
kindest regards to you and yours
|

Welcome
Likasi,
Congo

Yes,
you can do TTP by internet, and you can have sex by internet. Both are
about equally productive.
Clip: http://www.khbo.be/pics/content/
nieuwsbrief/feb03/likasi.jpg
|
Thu, 3 Jun 2004
Radial Momentum - Article - Researches
RM website,
I wish inform You about [our Web Site].
I would appreciate if You consider to write a article for us about your
experience.
Objective site explain most important and new theories on trading and
finance.
Also I have academic collaboration in section Econo-physics. I am adding in
these days new articles.
As reference my curriculum vitae:
Degree in Astrophysics, studies physics of finance, now I am studying
Philosophy of Physics ( philosophy science university, details :
interpretation of quantum mechanics).
Best Regards
|
Radial
Momentum applies to physics in general, and to fluid dynamic lift in
particular.
See www.radialmomentum.com.
OK,
here is an article for your site:
Trading
Guidelines
by
Ed
Trade
with the trend
Ride
winners and cut losers
Manage
risk
Stick
to your system
|
If
you have trouble with #4, you might consider joining / starting a Trading
Tribe.
Be
sure to credit the article to FAQ. |
Wed, 2 Jun 2004
Checking in (System 3 Workshop Exercise)
Hi Ed,
Everything is going well, and I am committed to following my System 3 rules.
My thinking is much clearer now, thanks to your helpful suggestions, and I
am testing new ideas daily. I still do not have the technical capability to
test everything that I intend to, but my software developer is being
responsive, and I am getting closer all the time. I now have a new version
of the software, and the remaining criteria for testing my System 3 rules is
the next item on the developer's "to do" list ... perhaps
"doing" list is a more appropriate term. I don't know how to
"to do" anything.
Thanks again for your support!
|
OK. |
Wed, 2 Jun 2004
End of Cheap
Oil @
National
Geographic Magazine
Great cover story on crude oil... note the bleak, artfully blackened
landscape, with cars stacked up like lemmings driving off into the setting
sun, the unknown, the abyss... pretty strong emotional content, to my
lights.
Paul Montgomery suggests that such signals are stronger when a non-financial
mass-circulation magazine picks up on economic or financial stories.
End of Cheap Oil @ National Geographic Magazine

Clip: http://magma.nationalgeographic.
com/ngm/0406/feature5/index.html |
For
more "It's gonna go up" news appearing around the recent top of
the petroleum complex, see also:
http://money.cnn.com/2004/03/
30/pf/autos/suv_hi_gas_prices/
http://www.thebostonchannel.com/
automotive/3322701/detail.html
http://www.poynter.org/
column.asp?id=2&aid=59282
http://www.msnbc.msn.com/id/4363659/
http://www.freerepublic.com/
focus/f-news/1134779/posts
http://talk.livedaily.com/
showthread.php?t=391424
If you Google "$3 gas," you get about 391,000 hits. |
Wed, 2 Jun 2004
Fred: The Movie
Chief Ed,
Hi there. I just discovered this interesting movie title from 1991. It's
that Fred guy, from the Tribe.
What's Fred doing in the movies... without CM ?
The Movie: Drop Dead Fred
But then she makes a strange discovery, in the back of her old closet is
her old jack-in-the-box, covered in the tape her mother had put there to
lock in her imaginary friend, Drop Dead Fred. Opening the tape, who should
pop out? Not jack, but Drop Dead Fred!
Fred is stark raving mad, and out to cause as much mayhem as possible, but
no one can see him but Elizabeth ... but Fred is back, because Elizabeth is
terribly unhappy. In his own weird and wacky way, he is out to set Elizabeth
on the right track.

Clip: http://images.amazon.com/images/
P/B00009NHAG.01.LZZZZZZZ.jpg
|
I
have to assume that would be as in "drop dead gorgeous." |
Wed, 02 Jun 2004
A Question
Dear Ed,
First I want to congratulate you for your site that I discovered 2 weeks ago
via www.turtletrader.com .
Looking for risk management technique and sizing bets. I learn more this
week then through my (5 years forex & futures index) trading.
I am impressed by your fantastic personality and vast knowledge in so many
areas of life and trading and understand that the only path to become a
successful trader its following your advise to stop FAQing around with
yourself.
I live in the middle of the bush in RD Congo but I manage to install a V-sat
(internet via satellite independent from local non existent Ip provider to
be able to achieve my passion of trading).
I read few FAQs and started to write you an email then realized that you
wouldn't answer me because you insist on SVO-p so I corrected it ... in
SVO-p grammar and discovered in a few second how much problem I still have
... and that the central problem was me .. and what I wrote had to go to the
trash bin.
I understand better today after reading the faq that uncertainty of the
future in trading as in life brings anxiety confusion anger frustration...
I understand the importance of a plan (based on a back tested method or
system) while if cannot predict the future at least lay down a list of
strategic responses to accept my fear and greed and do what is required when
prices reach those 2 psychological levels.
That list of strategic responses control me and not those events beyond my
control .
I understand also the importance of trading with the trend or flow .. how
can we make money if the price doesn't move .. and move and move.
I design trading systems based on trend using [Software] but don't manage to
find a winning strategy over the long term .All these systems start loosing
money after a while due to tremendous drawdown during those period of non
trending period. Those big winners 5% are eaten up by those small but
numerous loosers.
I am very risk averse and my comfort zone is .5 percent risk per trade and
15% max drawdown and I cannot apply it to a successful time frame (weekly
euro$ forex)) with my equity . On too small time frame(4 hours chart euro$
on forex) its not a winning strategy (too many false signals) .
You talk about an optimum betting size in your article which I don't grasp
because you say you have a return of 2 to 1 in a coin toss and me only a 1
to 1..;<)...must be an Ed Seykota hand made coin .. wish I could buy one
;<).
I am joking because I guess that its just an example of a 50% system with a
2 to 1 return.
I always find systems with [Software] which are around 40% losers to winners
ratio with 1.73 ratio winners/ losers after fees and slippage. I also don't
trust very much their program (the way they deal with trailing stops did the
market went up before down concept) and the data that I introduce (difficult
to find reliable historical data ).
I spend hours
checking manually those systems with intraday data to achieve more
confidence and also experience the feel of what it is to trade those system
(long long period of drawdown).
But I don't give up to find a better system ..I know now that I have met you
(my first mentor) and the tribe and that the problem is still within me ..
and that I can see light for the first time at the end of my trading
tunnel..
In the meantime while searching a suitable system (good winners to losers
ratio around 60% and about 2.2 to 1 ... keep scalping the market with
a 1.6 target to risk ;applying a calibrated risk management of .5% risk of
equity on 15 minutes time frame on the euro$ (forex market) watching a small
trend to develop for my entry signal and trailing my stop until target is
reached this to keep in touch with real market trading and training for
discipline (non ambiguous entry placing stops moving stops applying risk
management) .. but unfortunately still violating the basic rule of
trend following... let profit run.
I apply also risk control (trying to avoid large illiquid volatilities
period for my stops) I mean avoiding week ends (no stop) and fundamental
reports around 9 to 10 am ET (big random shocks on forex (50% of the time
comes back in few minutes to initial price and 50% of the time act like a
infinite variable busting trend pattern (looks more like the take off of a
shuttle then a trend) .
I guess its also a violation of trend following concept (according to
faq) but I am not feelingly qualified yet for these take off especially that
I am not always in the cockpit 50% of the time I am sitting in the tail
and feel the heat of the engines on my ego and my wallet.
This ... until I find a reliable back tested trend following system with an
acceptable drawdown which will give me the confidence to properly trade one
day .
Please I have a question: you talk about fractal in time frame but when I
check the price of euro $ the larger the time frame reaching daily and
weekly the market doesn't have so many consolidation phase and small but
devastating countertrend pattern its trending better and better and
violating less and less the trend (less noise) this is terrible because does
it mean that we are unable to trade successfully small time frame with
smaller stop?
Does that explain
part of the 90% losers unable (due to small equity )to trade successfully??
Or is that just again a wrong perception due to less data in larger time
frame ??
Again thank you for sharing your insight teaching us to grow up in life and
trading.
I have 2 wishes today be in the hot seat with you as a receiver .. at a TTP.
And trade few years close to you ... to grasp a bit of your immense wisdom.
Lipschutz the successful trader pointed out one day the importance of who
you meet in your life I fully understand that today reading your FAQ ...
kindest regards,
|
I
do not understand your question.
If
you wish to clarify it, you might try presenting it to some friends, until
they can understand what you mean.

Sometimes,
Inducing Confusion
is
clearly the intention.
Clip: http://www.pastemusic.com/images/
product/unscaled/1a%5B1%5D.confusing.jpg
|
Wed, 2 Jun 2004
Now with
Feeling
Dear Ed,
These Zen Koans may be of interest to the FAQ.
Zen Koans: Transcending Duality
Every Day Is a Good Day
Unmon said: "I do not ask you about fifteen days ago. But what about
fifteen days hence? Come, say a word about this!" Since none of the
monks answered, he answered for them: "Every day is a good day."
No Cold and Heat
A monk asked Tozan, "How can we escape the cold and heat?" Tozan
replied, "Why not go where there is no cold and heat?" "Is
there such a place?" the monk asked. Tozan commented, "When cold,
be thoroughly cold; when hot, be hot through and through. |
Tozan
asks Unmon what to do when the market trends. Unmon smiles and doubles up.

Ha
Ha Ha - Aha Aha
Clip: http://marbella.to/humour/
sep00/smile.jpg |
Wed, 2 Jun 2004
Article on Human Feelings
and the
Perception thereof
Hi, Ed -
An article in the most recent number of the journal "Trends in
Cognitive Sciences" seems to relate, if I understand it correctly, to
TTP. It discusses how the perception of feelings is made up of the
composite of many different visceral and somatic manifestations coming into
the brain from various parts of the body.
The abstract of the article may be found here:
http://www.sciencedirect.com/
science?_ob=ArticleURL&_udi=B6VH9 |
In
TTP we work with "Forms" that comprise emotions, somatic
sensations, postures, thoughts, facial expressions, muscle tensions and body
motions. |
Wed, 2 Jun 2004
No Time Like
the Present
Ed,
I have just read an article in which the author describes the
ever-present Now - what I call "No time = no duration" - so
succinctly.
I find myself thinking about an increasingly frequent question from my three
& a half year old daughter ... "Is it tomorrow ?" She asks
it nearly every day and perhaps it is a common question from kids of
that age.
I patiently
explain that right now it's today and that the next day is always tomorrow,
but sometimes she gets upset and says "No, today is tomorrow",
meaning of course that what was referred to yesterday as tomorrow has now
arrived.
Do you think there
is a way to explain the day to day meaning of "this
mythical timeline" to a child, whilst keeping alive her innocent &
natural experience of the ever-present Now ?
I appreciate this may be way off topic from a trading perspective, but in
another way that may not be so..
Keep up the good work.
With thanks, |
Your
daughter's experience of tomorrow and yesterday exist right here in the now,
along with everything else.

Julian
Barbour
Slightly
Ahead of His Time
In his book, The
End of Time, physicist Barbour argues that part of Newton's and
Einstein's legacies are a belief in the existence of time, a belief that is
both convenient and false.
Clip: http://www.edge.org/3rd_culture/
barbour/barbour_index.html |
|