The Trading Tribe

Ed Seykota's FAQ
Home | Send Mail to FAQ | Resources | Ground Rules | FAQ Index

Epidemic Lab

Contributors Say Ed Says


Image Credit

August 13, 2021

Feelings About Stops

Hi Ed

Hope you are doing well.

It has been a while that I wrote to FAQ (almost 2 years).  I do enjoy reading the FAQ's though as I always learn a lot. 

Last month I saw one of the traders mention about being stopped out. 

I thought I would share my experience as I had gone through a similar process in my trading. 

When I started trading, I always used to worry about getting stopped out. 

Interestingly, I would end up buying securities that would hit my stop and move up. 

In 2014 I got to do the Breathwork with you and I took TRUST as the thing I needed to work on.  I got to visit a childhood incident that had caused me to lose faith/trust and I couldn't trust anyone. 

After letting go of my worry with stops, my performance improved a lot and I didn't worry whether my stops would get hit or not.  Just went with the system. 

Again in 2018, I went through a similar cycle of getting frustrated with stops.  It was the markets but I stopped trading for a while and missed some of the best trades during the 2019 move up. 

Those trades would have not only recovered the losses but also improved my equity considerably.  After meeting you for lunch in 2019, I started trading again and this time have gone back to following the system.  If a stop hits, I don't worry about it just move on with the next trade.

What I have realized from the whole experience is that there will be times when the stop will hit. 

My experience over the past 5+ years has been that if I worry about stops, I mess up my trading.  I am focused on the stop that happened so much that I miss the future trades but if I accept it and look at the next trade, I am better of in the long run.

Thank you for everything you do for traders like us.

Kind Regards
Thank you for sharing your process.
Aug 11, 2021

Several New Friends

Hi Ed,

On Feb. 11, 2019 I in my report to FAQ about a Tribe meeting I write:

"I notice immediate and positive changes surrounding the Tribe meeting. I feel surprise with my new, strong desire to connect. I make several new friends."

That evening after the Tribe meeting, I recall introducing myself to someone I fear speaking to. I share my feeling of fear and shyness with this person, and recall the strong connection we make when that person shares that they too are shy, and get uncomfortable speaking with people sometimes.

It turns out this person is now in charge of hiring at a very popular club, and I feel happy to share the news that he hired my band to play next month!

Happy Birthday! Thank you for the gift.
Thank you for sharing your process.
Aug 10, 2021

No Exact System

Hi Ed.

To the end of this year I plan to use VNS ranking (20 days based, I choose the distance from trends article) for stocks making all day highs from different countries (for diversification).

I like trade commodities with no exact system rules yet, I intend sort them by VNS also and unite with stocks. 

I have 1 question. The Process of opening new deals  are dinamic like instruments selection till you have margin?

I don’t know how many deals I can open in a row.

I am very greed man increasing risk up.

I think You have really great patience helping us traders making similar questions.

Thank you very much.
Thank you for raising this issue.

The combination of "no exact system" and "increasing risk" generally invites drama.

You might consider taking your feelings about <discipline> to Tribe as an entry point.

Aug 6, 2021

Journey to 185 Pounds

Dear Ed,

Thank you for sharing your journey to 185 lbs. and your observations. My congratulations to you!

I can truly relate to "I feel a desire to eat when I get near the goal". I observe a similar behavior with me, not only related to eating habits but in general when pursuing "bigger" goals. I wonder if this is associated with fear of, well, change? Success? Uncertainty? If you have any thoughts that you'd like to share that would be great.

I wonder what made you stick to your vegan diet after you approached 185 lbs. I'd suspect that weight loss was no longer your main goal but a welcome side effect?

Sincere greetings and thank you.

Thank you for congratulating me.

I recall sticking to an Atkins / Peleo system for years.  Result: lots of struggle and perennially oscillating weight.

Starting April 1, 2021 I abandon that system and commit to a plant-base food plan. Result: relatively easy to follow; down from 205 pounds to around 180 in about 4 months.

Interesting side effects (typical): cholesterol down; testosterone up; everything currently in healthy range.

Aug 6, 2021

"W" and "ST" Buttons

Dear Ed,

I notice that there are 2 new buttons called "W" and "ST" in TT Chartbook.

When these 2 button toggles on, blue line and green circle show on the chart.

It seems that they are tools for technical analysis.

Could you please provide some clarification on these 2 new added features?

Thank you very much!
Thank you for noticing the new features.

I have them in development. No operations manual at present.
Aug 5, 2021

Risk Management

Dear  Ed,

Today I do my daily chart exercise and I notice that one strong stock posted on TT_charts recently drops -46.5% on 8/4/2021.

A vivid reminder of importance of risk management.

My Aha moment ...

Down 46.5%

in one day.

Thank you for sharing your process
Aug 1, 2021


Hi Ed,

Hearty congratulations on reaching your desired goal of 185 pounds and living lighter. :)

Best wishes,
Thank you for acknowledging me and the work.
To Top of Page