I actually started reading this book a few weeks ago at the library. "trade or fade?" haha.... Have been lazy so I havent finished it yet, but this thread highlights the important stuff, so i guess I wont have to ;-D Thanks for the interview links. This thread is pretty useful. Any reference to how the best traders work is useful ;D
Painful forced awareness = puking up your guts as the market grabs you by the face and violently shakes your skull, screaming "WRONG AGAIN ASSHOLE, WRONG AGAIN!!!". But seriously, it's the result of the fact most of us in losing positions will filter out any information the market is giving us that tells us we're wrong, while focusing soley on whatever excuse we can give ourselves for staying in the losing trade. This eventually leads to a forced realization of the truth when we finally cannot stand the pain and hit the exit button. It's a perceptive description of what most traders go through, and it's detailed in Douglas's The Disciplined Trader, worth a read I think.
Yes, from "Trading in the Zone" I think is where I read it. So eloquently describes a small trader getting squeezed out of a position almost exactly as it pivots...
I apologize in advanced. After listening some of his stuff, my conclusion is: it is not going to help me much. It is interesting to look at the material since Mark Douglas obviously have spent so much time thinking about the subject. Just from some vocabulary he used, I suspect he just rips stuff off Buddhism and other eastern disciplines, piece them together into his pseudoscience framework. This is the age of relativity and quantum physics, who still think like him? You better have some scientific evidence to back your theories. At least make up some fake statistics... Here are some stuff off my head that I found helpful (not the exact wordings): 1) Kevin Haggerty (tradingmarkets.com), he was in the Marine Corp: "Being in that part of Asia, you either can get it done or not get it done - no trading psychology B.S. Trading is just numbers like any business, if you can't take the heat, go do something else." 2) Sun Tzu's The Art of War: "Whether you are going to win the battle depends solely on whether your enemies have made any tactical mistakes." (Minimize your chances of mistake unless you want other to win) "Even though you know you can win a battle, you might not want to fight it just for the sake of winning." (There is always risk and cost - tell that to Mr. Bush.) 3) Marty Schwartz: "Play with your head not with your gut." 4) From my checklist: Any one trade is not important in the long run. Play small. Stick with the plan. This is kinda where I am right now: For my S&P scalping, I need a method with an edge that fit my personality. All methods have a very small edge. They are either high probability/low reward or low probability/high reward. Then I have to do everything in my power not to dampen the edge, i.e. doing screw-up things such as overtrading (taking unqualified setup and increase commission cost) and mixing in other methodologies. I set myself to focus on a limited number of trade per day. Basically I am a scalper using a high probability/low reward setup with relatively tight stops. I can easily do things to dampen my edge just by mixing in low probability/high reward methods. I am doing what is comfortable for me then I will be less frequent to fall into emotional drama... why would anyone want to confront their ugly side? You do that at the comfort of your leisure not while handling money. There is a time and place for everything. If shit happens all the time, there is a problem with the plan or method. This is just a note to myself of what fit me best at this stage. I also think paper trading is the best way to visualize/simulate/internalize the plan and save a ton of money. I wish someone could tell me this earlier. Enough babbling.
When all else failed: One time I don't look so good to a friend while I was visiting a Buddhist monastery. He said "If you think you have a problem then pray to the Buddha." I was thinking: "Yeah right! I am having a worldly problem, Buddha can't help." I look at the great Buddha statue, and I notice the begging bowl he is holding. Then I see clearly, my problem comes from attachments of something, in fact most problems are. Buddha Shakyamuni gave up his throne, beautiful wife and child to meditate in order to figure out a solution to leviate all sufferings. He gave up his attachments and in fact in his meditation, he found attachment and hatred (hope/fear, god/demon) are not inherent characteristics of the natural mind, the Buddha mind - from human to ants. What does it all mean? Take it easy... problem can't stick if you lossen up. Then you might have a better chance to see things differently (closer to reality).
LISTENING to some of his stuff? He wrote a couple books... Obviously you either A) didn't actually read the book(s) or B) didn't comprehend the truth contained within. "There is a principle which is a bar against all information, proof against all arguments and which cannot fail to keep a man in everlasting ignorance - that principle is: contempt prior to investigation." Good Luck. I hope you don't have to be humbled by the Market like I was.
Again I apologize being harsh and I am obviously no expert in this. What I have at hand is his $2000+ audio tape seminar, I agree this guy did spend a lot more time thinking about the subject (which we should all do) and I am sure people might find it very helpful... actually someone recommended his book to me once. I am still trying to finish listening to his stuff but trust me I really really want it to work for me. And I had an open mind before I listen to his stuff. I was turned off when I found he misinterpreted and skewed a lot of eastern philosophy (actually use same vocabulary) and fit it in a way that serve him and led people think the material to be original. Maybe that is my problem, nevertheless I am still trying to finish the tapes...
I stand corrected - didn't even know he had tapes... $2K huh? Wow, he is a trader... There are not too many original ideas - most "knowledge" is the same basic truths recycled. Regards