The Documents by Jack Hershey

Discussion in 'Educational Resources' started by TIKITRADER, Jul 14, 2010.

  1. charts

    charts

    #21     Jul 15, 2010
  2. charts

    charts

    Obviously lots of interest ... :) In a little more than 24 hours 71 new downloads (!)
     
    #22     Jul 15, 2010
  3. How to know you are learning something wrong or that is incorrect

    Break what you are doing down into pieces and find the pieces that are difficult. Look at why you are making them difficult. Most times it is a belief you already have that will not fit into the assembly line of getting to differentiation.

    the mind cannot erase. It can but you have to train your mind to manufacture the eraser peptides, etc. and that takes training and a long application of time for doing subsequent erasing.

    A lot of people are screwed regarding this. Read detractors to pick out their fatal beliefs.

    Keep in mind, someday, you probably will be standing on the shoulders of those who preceded you (See spydertrader as an example).

    Next, as you work, the drills you are doing do not work for you. you may be "inventing" or you may be "skipping steps" because you know you are so smart. Please stop inventing and please stop working so rapidly that you do not give yourself a chance.

    Next, look at how the helix works. everything you HAVE learned isstill in play, you are not replacing anything with something else. think a about how you learned math and science. you start with a foundation and add building blocks. No blocks areskippped or misplaced or left out.

    Next, review how Rome was built. It took more than one day. you assess. You assimilate, you get facility. you can actually talk about it a little. you can pass it forward to others.

    Here is an important point. you will learn more during your passing it forward than any other time. don't be a solo artist, ever. Work with peers and work with your mentor and work to learn to mentor.

    The first person to mentor is yourself. so talk out loud as you do drills and work in real market time.

    Next, always have the "context" in mind. It surrounds you on two sides in terms of fractals. You are building a tank tread in your mind. No moibus strips please.

    Please recognize the three tank treads one within the other. We trade on the middle one. The pattern must be unconsciously competent on all three levels. Think of Rome, again.

    Next, this is not an academic situation. You can always look at others papers and be a copycat. TThicken your 3 ring binder's past contents by repeating drills to brush more frequently. Use more toothpaste than your older brother or sister. Make your mother use you as an example.

    next, at the END of everywork session (drill) debrief and point out to yourself the things you had to do workaround on before you could bury a past belief. We all are building new pieces INFRONT OF OLD UNUSEFUL PIECES.

    Next, ask thoughtful questions. See rcgarcia as an example not to follow. What did I do wrong? is not a thoughtful question. It is facing the wrong way and you are asking for your homework to be graded. The market is always correct. so ask about what the market is doing and how a person can see the "what's" that are going on.

    If you are annotaing add a log to help you. this is building a permanent answer sheet for the annotations on three levels. all the pieces have their own columns and their own vocabularies. This way nothing is getting skipped or invented.

    Next: reflection. "No shit, dick tracey" can happen after you sleep on anything. What happened was that your unconscious sensing got added into your memory banks and this is like putting reinforcing rods in just after you pour the cement. This is where aha's come from.

    Wrapup. When you work hard drilling, you get to deal with mistakes. When the light appears at the end of the tunnel on a dril,l you find out by checking yourself at below the neck level. You feel comfort, support and confidence and anxiety, fear and anger have gone way away.

    Look back at your past successes in completing drills. Do not postpone doing sufficient drills.

    There are a lot of people doing this. There are a lot of people passing it forward. Most people pass on doing the work. Learning is a process.
     
    #23     Jul 15, 2010
  4. jem

    jem

    How to guess you are doing something wrong.

    You follow the advice of a guru who says things like he creates profitable SCT traders.

    Yet, no profitable SCT traders are every produced.
     
    #24     Jul 15, 2010
  5. Building Minds for Building Wealth

    Summary

    This paper is an abbreviated presentation of what it takes, pragmatically, for a person to
    make money by position trading stocks and Seamless Continuous Trading (SCT) of the S&P
    500 E-mini (ES) futures. It tells how a person can get to the point of making significant
    inroads on achieving their potential. Markets are there for anyone to use, and any person
    has the potential to enable themselves to perform by using obtainable knowledge, skills and
    experience.
    Some good choices are required. Then, with these choices made, a person must go
    through a holistic process of refinement to become an expert. It all boils down to defining
    and completing a process. The objective is to form a working partnership with the market.
    To do this, starting from an understood beginning point, it is necessary to become
    operational in several related areas concurrently. The process allows a person to realize a
    potential that is already there, by going from level to level towards an operational goal.
    Getting there is a process. It is more than just looking at what is. It is also a process of
    acquisition and a process of using learning tools to build structure and new processes. All
    the while, energy must be supplied to make the construct work, function, and refine it’s self.
    This paper is organized to unwrap and place upon the table the opportunity and, then, to go
    about the business of systematically getting it to work, by an effort of transference.
    i.e. to make money as a consequence of “taking” the opportunity.
    The text of this paper is written in the vein of me, the author, talking to you, the recipient of
    the transference.

    JH
     
    #25     Jul 15, 2010
  6. Now Jem, don't be so cynical. Just because for all the years Jack has been mentoring none of his scores of followers has ever posted "Yippee! I just got filthy fucking rich!" doesn't mean nobody has.
     
    #26     Jul 15, 2010
  7. I will continue to post each section of Building Minds for Building Wealth. As the weeks pass this will give an opportunity for anyone with questions or knowledge to share, a place to discuss the content.


    Now on to . . .

    Part I The Macro: Game Plans, Incentives and Confidence


    If you don’t know where you are going you don’t need a map. We all are going, by
    transference, to a place where you make as much money as you want. This amount of
    money is much more than you need.
    The Game Plan, your map, is based upon your trading business plan which is THE incentive
    for going to the place to make money. The trading business plan starts with your present
    capital and includes 8 levels of doubling, the effectiveness of your performance as
    compared to your beginning performance level. There are two caveats you will have to
    include in your plan; how times will change in terms of the worth of money, and the
    possibility that you may have done some of these doublings already, if you are not a novice
    currently.
    There are two other parts to this Game Plan: the markets and YOU. The markets are there
    now, offering money, and YOU are reading this in your present state of existence. By
    connecting you to the markets and enabling you, your business plan (wealth building) will
    become a matter of record over time.
    Confidence will come to you during this endeavor. It comes from your mind as you build
    your mind, successfully, to take advantage of the opportunity.
    The markets operate in ways that are wholly documented. They are known quantities and
    they give money to those who use them, correctly, for such purposes. We all, as users,
    “take” what we are able to as a direct consequence of our knowledge, skills and experience.
    The markets are there offering; we are here with given expertise.

    This paper deals with clarifying the methods, by being effective and efficient, that can be used deliberatively to
    take the offered money out of the market and put it into your hands as a trader.
    Once the game plan is clear, an iterative refinement process ensues to afford you, a trader,
    the 8 doublings of performance for taking that money out of the market.
    The above, scopes and bounds the opportunity and the process necessary to go from the
    NOW to the place where you, as a trader, are able to realize what the market offers to you
    at all times.
    Acceptable stocks have price rates of change that are seen to be in the range of 5 percent
    per day. The ES typically moves in a range of 15 points a day. Any person can see this
    happen, have a plan to make money from these price changes, and carry out an approach
    to transfer this capital dynamic from the traded markets into a personal trading account.
    Public records that describe these three elements abound. This paper is a description of
    how to go about getting engaged in and carrying out that which is required to participate in
    this process.
     
    #27     Jul 15, 2010
  8. A. The Trading Business Plan


    The overall game plan merges several factors. The trading business plan is more a
    commentary on how the money part of this plan works. Later in Part II there is an emphasis
    on trading plans and the trading methods used. In this section we will consider how all of
    the details relate in the formal package, outlined in appendix B.
    The trading business plan is designed and followed to achieve a critical path of building
    capital as fast as possible, with due consideration to both financial and non-financial
    aspects. Basically the critical path is determined by using all the knowledge, skills and
    experience available at the first opportunity to deploy them to making money without undue
    risk. It is especially important not to trade in those areas where knowledge and skills are
    lacking.
    The trading business plan develops around two learning stages. The first stage is related to
    position trading stocks, where there is no financial leverage and the pace of the market
    traded is relatively slow. Having a slow paced market, affords the beginning trader the time
    to get the job done successfully because the time needed is always available. By not
    leveraging capital, in stock trading, the impact of temporary failures or mistakes does not eat
    up prior successes. Position trading stocks builds a foundation for moving into faster paced
    markets where capital is ordinarily leveraged.
    The two markets that will be used are very different in one major respect. Position trading
    stocks is done in one general market (equities) where many instruments are traded
    concurrently. In contrast, the commodities futures index market contains instruments for
    trading and most traders focus on one instrument within that market.

    While neither market is
    continuous, in mathematical terms, position trading stocks is a continuous day after day
    operation without end. Cycles of entries and exits are made over and over. In commodities
    trading, the activity of the market focuses primarily on the front contract whose life span is
    three months (a quarter) meaning that the front month is renewed quarterly with a fixed time
    horizon, that is initially three months out. Thus, the future contract term continually shortens
    after initiation until the term of the front contract is used up in a quarter of a year. The
    purposes of the stock instruments are entirely different than the purpose of the commodities
    futures index instruments. Stock instruments represent ownership in ongoing corporations,
    while commodities contracts are financial risk insurance-like protection instruments related
    to a limited value range in the future.
    Making money in position stock trading happens much more slowly (10% every 4 to 8 days)
    than in trading commodities futures indexes (up to 3 times the daily range, each day). On
    the other hand, the stock markets are much larger and diverse than the commodities future
    indexes. When a trader reaches a level of expertise in both markets and trades
    concurrently, the normal procedure is to limit the capital in commodities futures index
    trading. The limitation is set by giving regard to being able to trade in a very timely manner
    without a fear of not having orders filled promptly. In this way “slippage” is avoided. As
    profits accumulate through compounding, and capital surpluses occur, they are transferred
    periodically from the commodities future index trading accounts to the position stock trading
    program accounts. At some point financial trading limitations do occur in stock position
    trading. Because the traded universe is relatively broad, more and more streams of capital
    are added and are traded in parallel.
     
    #28     Jul 15, 2010
  9. nkhoi

    nkhoi

    let's face it would you rather reading building wealth or 'These Biases I have are Killing me'.
     
    #29     Jul 15, 2010
  10. 1. Position Trading Stocks


    Position trading stocks is an approach that involves carrying out the process shown in the
    chart on page 11. The left QA (Quality Assurance) part of the chart is designed to yield an
    up to date Universe which then can be traded as an EOD (End of Day) data oriented effort.
    The right side of the chart deals with the ROI (Return on Investment) performance
    characteristics of making money by using this Universe of stocks.



    [​IMG]



    The basic principal is to trade a very high quality Universe as measured by earnings and
    price performance. Stocks are obtained nowadays from Stocktables.com and the default
    setup for getting a list of approximately 125 stocks is done by setting limits on the RS
    (Relative Strength) and EPS (Earnings per Share). The price range is arbitrarily set at 10 to
    50. The list is sorted by increasing volume, to assure that the order of appearance of the
    stocks corresponds to three scoring values going down the list from top to bottom (7’s, 0’s
    and 1’s). Over time the stocks migrate up the list. The list can be pulled at the frequency of
    every 3 to 4 days.
    All stocks on the list are graded to determine their repeatability and reliability and
    consequently their Rank which is a measure of the daily money velocity in percent per day.
    An initial analysis sheet is used to do this, either manually (A good drill for getting to expert)
    or automatically by Excel. The chart of the stock is also annotated with formations and
    Initial Analysis Sheet (IAS) designations at this time.
    Stocks are then placed in a set of review portfolios according to their contemporary scores
    (7’s, 0’s, and 1’s), whether they are owned, and if they are being considered for purchase
    (a HOT list).
    Daily evaluations are made using logging sheets. The logging sheets represent monitoring,
    analysis, decision making and timely action as the 16 columns are traversed. Logging
    sheets are kept for each portfolio. Clearstation.com is an example of a place to keep
    portfolios that can be accessed to do the daily routine in convenient bulk viewing groups.
    All of the above is kept in three ring binders and, periodically, new annotated charts are
    pulled from the displays used on the PC monitoring platform.


    The Hot list and the owned lists are given special attention on a daily basis. A log sheet is
    used to assess the HOT list and the daily analysis sheet is used to complete the monitoring,
    analysis, decision making and planned action for the next day on owned stocks.
    The progression of wealth building continually accelerates. There is no point where the
    effort becomes saturated (as mold would as it grew on a piece of bread). The progression is
    a consequence of the continuing acquisition of knowledge, skills and experience.
    At some point, while also holding a job, EOD trading becomes the principal source of
    acquired wealth. When this occurs it is time to consider trading full time. Monitoring stocks
    full time, instead of just in the evening as an EOD effort, changes the effectiveness and
    efficiency of making money by position trading. You move from EOD data to real time data
    in a more revealing fractal (usually the 15 or 30 minute fractal). This means two things: you
    get to see the actual peaks forming, and you can also consider changing the duration of the
    hold period to only incorporate the period of highest money velocities.


    Both considerations greatly increase the return on investment (ROI), and replacing the
    income of not working usually happens over a short interval. Coupling this with the real time
    commodities trading opportunity completes the full picture.
    Trading stocks only during their optimum price velocities is called cross trading. It involves
    emphasizing the money velocity of the hold period. As stocks are monitored in real time, it
    is possible to rough out their time rate of change in value. This applies to owned stocks as
    well as HOT list stocks. When an owned stock begins to wane in capital appreciation, it can
    be sold and the capital can then be used to buy and hold a stock whose capital appreciation
    is growing better than the just sold stock.
     
    #30     Jul 15, 2010