The 4 stages of the SCT trader

Discussion in 'Psychology' started by bluebolt, Jun 11, 2008.

Thread Status:
Not open for further replies.
  1. Stages of a Hershey Trader

    Cocaine is a great example of the stages a Hershey trader goes through while studying Jack's "teachings."

    Stage 1 -- Eagerness and Ingratiation

    Would someone like Spyder, Mak, Procrast etc care to shed some light on the opening channel from today, and if you have a carry over channel in play, would you mind explaining that as well. Thanks guys!!

    Stage 2 -- Delusion and Defensiveness

    These strong detractors are angry that Jack is giving away the "keys to the kingdom" so they feel the need to spread as much bad press as they can for damage control.

    Stage 3 -- Denial

    Also, please link where I said I personally TRADE the Hershey method. Where I tell everyone that I trade SCT. Go on, show me.

    Stage 4 -- Acceptance

    I dont know if "SCT" works and I dont know that Jack Hershey even trades. I have no idea of either of those things. I personally think Jack is nuts

    *Kudos to Trader666 for compiling this incisive psychological roadmap of the SCT rollercoaster ride*
  2. Tums


  3. Well don't forget to subscribe to the newsletter and buy a T-shirt on the way out
  4. LOL
  5. slacker


    Stage 5 - Anger

    I took a ration of s*** from Spyder, being the "asshole", etc. With him it's always the students fault, impossible to be the teacher. You wanna explain how something as basic as picking out a FTT after the fact, by someone supposedly profitable, can be so far off base? Not a real good comprehension level in my estimation. bundlemaker

    Stage 6 - Regret and Resignation

    I have not been able to succesfully trade the ES even though that doesnt mean its not POSSIBLE. tradingbug
  6. My my, I'm so glad BlueDolt started this thread, let me explain what I have been doing for the last 3 days.

    Monday of this past week, I was back in touch with an acquaintance I met through a friend who trades remote like I do. He is a futures trader and has been for some years. I had sat with him once many many months ago when I contemplated making a transition from stock trading to futures. I have been stock trading as my sole source of income since 2000 but I felt I needed a change. I was stagnating. So I sat with him for one day and was amazed at what I saw. This man traded futures in a very similar manner to what Spydertrader and Jack Hershey talk about at ET. His results were far better than my stock results and he said that the this particular day was just "so so". After that I started investigating the Hershey method and that is why I posted several questions to Spydertrader some months back.

    Which leads me back to this past week. Phil was nice enough to offer I swing by his place and sit with him again, this time for 3 days. So I drove over 2 hrs to meet up with him and spent Wed, Thurs and Friday sitting with him once again. I didn't mind missing several trading days, I usually avg ~$700 a day so in the long run who really cares. Let me quickly explain what I witnessed:

    1. He trades using channels, and his software builds channels the same way as outlined in the Hershey method. He coded up the criteria which constitutes a channel and the software takes care of the rest. Its constantly given him a proper context as price moves from the past to now.

    2. He uses price and volume religiously. In combination with his channeling context and his experience, he knows what to do in every situation in which he takes action.

    3. He actually has some SCT like trades, situations where he knows from his experience that reversing as opposed to just exiting is the proper thing to do.

    For the 3 days he earned 11.2k, 3.8k and 5.5k respectively (net). He never talks about P&L but I made note of it at several points throughout the day. He is very low key and you'd never guess he earns 7 figures from his home office.

    Anyways, this was an excellent past 3 days. After sitting with him that one time, I got a decent idea of what is needed to trade futures successfully, but now after 3 more days and seeing his steady and continued successes, I have no doubt now that what people are reading about here at ET with regards to the "Hershey" method, works. It's really just up to the individual to sit there everyday and learn to make sense of it all.
    I really have no comments on the claims of SCT as I have never seen any of them shown but as far as the basis for the method itself (the channels, the price+volume) I KNOW they work and everyday. Given that the Hershey method is comprised of these same very critical parts, I can only summise all of the other bells and whistles can add value along the way as one gains experience.

    Just as a point of reference, I asked him how many down days he has a year and he said he usually has about 10 and they are roughly half to 2/3's of one normal up day. He said that 50% of his down days are caused by him being in a position when random market moving news is announced and the market suddenly moves against him. Basically news that couldnt be accounted for. He did say that occasionally, random news actually works in his favor so some of those down days are a wash anyways.
  7. Methinks he doth protest too much :p

  8. Hey Cocaine - nice post:

    2 questions for you:

    1 How much size does your friend do to earn 7 figures in futures?

    2 Does he scale in/out or go all in/out?

    My only 'doubt' about such claims is that if these guys trading ES can make money every single day with little risk then why the hell are they not trading over 200 lots and making over 10 million a year since that kind of size is ridiculously easy in the ES.
  9. Oh no!

    Not the phantom friend who is a multi-millionaire and he uses SCT" spiel again.

    Did you have a nice drive?

    Dive he give you lunch while you were watching him trade?

    Did you actually learn anything while (alledgely) watching this trader who uses SCT techniques to bag thousands and thousands of dolllars on a daily basis? - (and that's just from the ES, no doubt).
    Hey, thanks for the stories anyway, they're incredibly entertaining. :p :D

    But come on, tell the truth, we all know you were really just getting over a bender ... LOL. :D
  10. Ahhhhhh the desperate newb.. dazzled by visions of the grail and other fairy tales.. all SCT users are the same :p
    #10     Jun 14, 2008
Thread Status:
Not open for further replies.