"POKER RULE #80: Don't become overconfident. By overconfident I don't mean cocky, superior, pompous, self-important. I simply mean a quiet inner conviction that "probability can't get me anymore, I'm just too good." Dismiss pride." As past Dzogchen teacher Longchenpa adviced: Don't fall into the two extremes of overestimation (eternalism) and underestimation (nihilism). Trade the norm and not the exception. Always have an exit plan.
"POKER RULE #81: Your edge is small. Remember always that any edge you have is a small edge... Your edge is a very subtle shading or gradation. Treat it humbly. The rule always: Humility!" The edge of any method is small and any chaos created by taking marginal trades can be detrimental. Focus on the high probability setup and not the money. Do away trades that might lead to a winner now but will throw one off balance in the long run. It's more important to keep one's head.
"POKER RULE #82: Be very careful when you are flush with money from a big win... Ten Feet Tall and Bulletproof (otherwise known as Flush with Money), is one of the most dangerous conditions in gambling - the state of being ripe for a fall is so ripe that it's almost off the chart..." The ancient oracle book I-Ching warns that extremes will revert. Marty Schwartz suggested to take break in order to extend winning streak and also reduce trading size after the big wins.
"POKER RULE #83: Don't steam. Steaming, in poker parlance, is what happens when your queen's-up full house loses to a king's-up full house, or when your four kings lose to four aces... Use the time usually devoted to steaming to go back over the hand in your mind to see if you missed anything... " Imperfection is expected in trading. Move on to the next trade with mental closure.
I got mine sitting on the bookshelf too. Believe it or not, they applied the I-Ching philosophy in calendaring and medicine. Things started working in a very precise manner. There is some power there beyond the fortune cookie crap.
:eek: Thank you for a great great book. In terms of content, it's like a fresh breeze comparing to most trading psychology books out there. In terms of integrity, your books are peerless. (I was really bothered by another author ripping stuff off from other sources and claims it to be original with straight face.) The literal meaning of the key rules might appear trivial at first but there are different levels of understanding, focus and development happening over time. It just seems like there is no clear way to speed up this evolution process. Can you give us some insights into how one should go about internalizing the rules? Thank you again. Your book has helped some of us through some tough times.
Great book Larry. So many points rang a bell with trading and made me realize "my" flaws were not unique. It is a great book to always go back to to keep one balanced and avoid going off track.