As you all know by now, it is claimed that I am a poor communicator. As I work with those learning to learn to trade, I do notice that they change over time. Potential traders are commonly ignorant and that leads to a lot of false belief systems which I have never seen anyone overcome. This is a stressful situation for as long as they fail to learn to trade and then with reason quit. The shortcut to worryfree trading is also a path that has little to do with stress. I believe the most skilled traders use simptoms of stress (anger, anxiety and fear) as personal warning systems of the fact that they do not know what is going on. Almost all posts on ET illustrate that the poster does not know what is going on. Give brief regard to the alias changers and those who do not use their real names. these people are really stressed out types. Look at Andrew Lo's (MIT) studies of big money traders; they are ALL stressed out and not making very much money on the capital they use. The bottom line connection between stress and trading is simply DO YOU KNOW WHAT IS GOING ON? Stress free learning to trade has a very simple path and only about 9 steps. 1. Only use entry/exit to trade dominant trends as show by volume signals. (use PRV on fixed duration bars.) Using this simply approach keeps you away from all the bad and shadowy things about markets. Trade in a group and trade the same fractal (position trade stocks where a hold is 4 to 6 days and only a long trade.) Only trade extremely high quality stocks (EPS and RS invented by William J O'Neil who nailed his fortune in 27 months. See page 173 of his book 24 Essential......) 2. Somehow learn that entries and exits are identical but just in opposite directions. The easy way to do this is to annotate stocks on charts. Some odf the dummies on ET cannot get it that a trade's boundaries are drawn ahead of time. Say you a trading 1 above only. BUT before you enter you draw in the shrt price trend ending ahead of your long trade that is coming up. Years ago I was pressed here to illustrate this type of trading. I drew in the long boundaries and the trailing stop boundary and the point of entry while the stock was still in a short context. People who copied my annotation got to see on their screens the price fill in the annotations and the entry time and price when the coordinates arrived. You have a little money to trade. So you only do trades that will work and then you use the profits to trade more money. This is a stress free place even though you are fairly ignorant and have little or no experience. you just join in in a group and all of you trade the same Universe and the same stocks in the Universe. 3. You learn that the market is very orderly and it follows an order of events. By now in reading this almost all people have given up the reading or even thinking about stress and trading when you do not know what is going on. someone here said recently that spyder told him to just trade BO's of RTL's and let it go at that. Spyder had figured out the person was not teachable and that the person couldn't follow trading instruction. the person couldn't learn in otherwords. He was helping theperson quit without loosing alot of money too. The order of events around a BO of a RTL is: first the point 3 of the parallelogram then the FTT (Failure to Traverse the parallelogram to get to the LTL, then the retrurn to the RTL and the BO on the RTL and the pather to the dominant peak of volume at point 2. The BO of the RTL is where move 1 goes from non dominant overlap intl dominant only increasing volume. If a person gets this far in trading, he can see the end of his learning is a light at the end of a tunnel. I remember Covel started his book with the comment of "eight hazardous years". He certainly wasn't learning to trade; he was writing for Prentice Hall who dropped him. All the gains of markets over the years are the net difference of shorts during RTH and longs in betweem. non RTL is how the market net gained over time. Therefore, you have to pick high quality stocks to be able to make position trading work at high money velocity. 4. You do not have to work to earn a living. Between 1957 and 1960, starting with 300 bucks, I found out I did not have to work at a job to earn a living. I picked up a Mercedes sport car in Kopenhagen in 1960 and then did anything I wanted for the rest of my life. There is no doubt that it was easy to get rich in the 50's and 60's. Now we are in a Depression and we will have four VE's while the markets go south. I stated in JUN 2006 the Depression was beginning and on 01SEP09 i posted that the retrace was turning into an inverted saucer. For me all it meansis that I will be making money faster in the future, so I am planning on spending quite a bit in the near future. I do not feel any stress about this Depression. I feel all good traders have an immunity. The fear, anxiety and anger business for me is a warning sigh, personally, that I must become more alert until I makea reasoned change in how I am making money. It is moslty the pay more attention and don't leave any of the offer on the table. My best stock day I left 200,000 on the table. It was not much compared to the 17 points per share made on 100,000 shares traded that day. 5. You do not have to trade full time to be very rich. Keeping earnings is not much of a problem. Placing earnings where they will do the most work takes a lot of effort and research. I traded for the maximum number of accounts I could for many many years. In this way those people couldcontribute 20% of their time for free and still have a greath amount of retirement wealth. 6. The punch line: always knowing that you know and knowing what must come next. Most all traders will be like Andrew Lo's sample: anxious, fearful and angry. They will get sick. All ET traders post about their frame of mind which is anxious, fearful and angry. The consequence is that almost all traders fail and they learned failure on the way to failure. There is an alternative but most are too interested in being rich and right. The alternative is to learn to learn to trade. Thank you for taking the time to read this.
Why did you wake up tonight and invent that lie Jack? Trend Following (FT Press/Pren Hall/Pearson; 09, 07, 05, 04) The Complete TurtleTrader (Collins; 09, 07) Trend Commandments (FT Press/Pren Hall/Pearson; 11) The Little Book of Trading (Wiley; 11)
опять пиздит да?вот блеааать сука!!!
If you are stressed while trading it is either because you're using too much of your money to trade or because trading is your main source of income. If you're trading too big: reduce size. If trading is your main source of income: Diversify or you will always be haunted by the possibility of losing your income.
Jesse Livermore killed himself. I've been stressed out since the middle of June. I was short on that fake rally to new highs, held through it, covered my NQ futes last Sunday Night and went long on Monday. Played it almost perfectly, yet I'm still stressed. I'm shredded, eat healthy, have hobbies, get laid and have a family. It's tough, I don't care what anybody says. Maybe when I quit my day job it will be easier, I don't know. ...and to be honest I find it more stressfull being out of the market....Perhaps it would be easier if I went back to swing trading only the Long side.