|
02/21/01
|
09:34:17
|
<Chris>
|
Training
In Session
|
|
02/21/01
|
09:34:44
|
<Threei>
|
just
got DCC from member who was willing to buy it from you at 17 1/2 to start the
class...
|
|
02/21/01
|
09:34:47
|
<Chris>
|
Okay
gang, today I wanted to go over the topic of ""Changing your
Beliefs""
|
|
02/21/01
|
09:34:50
|
<Chris>
|
hehe
|
|
02/21/01
|
09:34:53
|
<Threei>
|
:)
|
|
02/21/01
|
09:35:32
|
<Chris>
|
First,
let me define a belief from my perspective.
|
|
02/21/01
|
09:36:01
|
<Chris>
|
A
belief is a feeling or concept, within any individual, about some future
outcome, based on past experiences or memories.
|
|
02/21/01
|
09:36:37
|
<Chris>
|
We all
have past experiences from early childhood, all the way up to 5 minutes ago,
that shape our beliefs about the future.
|
|
02/21/01
|
09:38:15
|
<Chris>
|
From a
personal point of view, we have beliefs about things external to trading such
as, sanctity of marriage, killing is wrong, stealing is wrong, sharing is
good, etc.
|
|
02/21/01
|
09:38:39
|
<Chris>
|
Now, I
chose these 4 for a reason:
|
|
02/21/01
|
09:39:06
|
<Chris>
|
Each
individuals beliefs about the above 4 could be very different.
|
|
02/21/01
|
09:39:43
|
<Chris>
|
Those
areas of the world where one is allowed to be married to more than one
individual may see this as separate from the view of monogamy.
|
|
02/21/01
|
09:40:01
|
<Chris>
|
Killing,
those that serve as military forces may see a conflict in this statement.
|
|
02/21/01
|
09:40:24
|
<Chris>
|
Stealing,
what about the man who has no other way to provide for his family at a
specific point in time?
|
|
02/21/01
|
09:40:39
|
<Chris>
|
Sharing?
How many of us would share our profits in each trade with our neighbors?
|
|
02/21/01
|
09:41:07
|
<Chris>
|
Point
being, within each belief, we create conflict when different situations or
other ways to look at things arise.
|
|
02/21/01
|
09:41:37
|
<Chris>
|
We are
so adament about ""kiling is wrong"", but then the draft
comes along in the US and we are forced to fight a war.
|
|
02/21/01
|
09:41:54
|
<Chris>
|
Let's
bring this back to trading.
|
|
02/21/01
|
09:42:08
|
<Chris>
|
We
learned certain beliefs about the way of living.
|
|
02/21/01
|
09:42:28
|
<Chris>
|
The
harder we work, the more effort we put in, the more money and reward we will
make.
|
|
02/21/01
|
09:42:34
|
<Chris>
|
The
less we work, the less money we will make.
|
|
02/21/01
|
09:43:02
|
<Chris>
|
The guy
that works three jobs, will make more than the bum on the couch.
|
|
02/21/01
|
09:43:17
|
<Chris>
|
In
trading, this is not so.
|
|
02/21/01
|
09:43:31
|
<Chris>
|
It
takes virtually no effort to trade stocks.
|
|
02/21/01
|
09:43:58
|
<Chris>
|
Anyone
can buy and sell stocks, having winners and losers, with no effort at all.
|
|
02/21/01
|
09:44:17
|
<Chris>
|
If you
don't believe this, tell your 5 year old to press your buttons for you.
|
|
02/21/01
|
09:44:48
|
<Chris>
|
They
may ask when or how, but once learned, with no effort, they would buy and
sell stocks with no reason or thought.
|
|
02/21/01
|
09:44:57
|
<Chris>
|
Some
of those trades would make money, some would not.
|
|
02/21/01
|
09:45:32
|
<Chris>
|
You
can see that in this example, on a winning trade, was it because the 5 year
old thought through the TA lines and pivot points?
|
|
02/21/01
|
09:45:39
|
<Chris>
|
No
|
|
02/21/01
|
09:46:07
|
<Chris>
|
When a
new trader comes to the market place, ready to trade stocks, this is the
mindset that most of them have.
|
|
02/21/01
|
09:46:18
|
<Chris>
|
And
it's a good reason that many do not stick around for too long.
|
|
02/21/01
|
09:46:36
|
<Chris>
|
They
trade, making trades, winning and losing, with no effort at all.
|
|
02/21/01
|
09:46:56
|
<Chris>
|
If
they are winning more in the beginning, they believe trading is easy, piece
of cake.
|
|
02/21/01
|
09:47:09
|
<Chris>
|
How
could anything be so hard?
|
|
02/21/01
|
09:47:13
|
<Threei>
|
S&P
500 1,280.52 +1.58
|
|
02/21/01
|
09:47:13
|
<Threei>
|
RT
Info: DOW 10,703.12 -27.76 | NAS Comp 2,342.58 +24.23
|
|
02/21/01
|
09:47:16
|
<Chris>
|
You
just buy here, and sell there
|
|
02/21/01
|
09:47:49
|
<Chris>
|
It's
not until a string of losses, or one great loss, begins to redefine their
thought process.
|
|
02/21/01
|
09:48:22
|
<Chris>
|
If the
trader loses and loses, their belief is that trading is impossible, no one
can do it.
|
|
02/21/01
|
09:49:04
|
<Chris>
|
Once
they begin a string of winners, or a big win, then their belief begins to
change, thinking that maybe it is possible.
|
|
02/21/01
|
09:49:40
|
<Chris>
|
Notice
how we had an initial belief, based on some criteria, or string of memories,
that created it.
|
|
02/21/01
|
09:50:08
|
<Chris>
|
Once a
different criteria was placed in the experience pool, the belief was somehow
distorted or changed.
|
|
02/21/01
|
09:50:31
|
<Chris>
|
From
my personal example.
|
|
02/21/01
|
09:50:39
|
<Chris>
|
I
started actively trading in 1997.
|
|
02/21/01
|
09:50:59
|
<Chris>
|
Fairly
strong bull market, easy to blow stops and most of them come back to make you
whole, tech sector was on fire.
|
|
02/21/01
|
09:51:21
|
<Chris>
|
I
could put on trades on day, take my daughters to the pool, come back and see
where I was.
|
|
02/21/01
|
09:51:34
|
<Chris>
|
I had
no bad experiences.
|
|
02/21/01
|
09:51:53
|
<Chris>
|
Nothing
of a stock that was down, was down for too long, and eventually came back to
make me whole.
|
|
02/21/01
|
09:52:12
|
<Chris>
|
I was
creating a belief that all I had to do was, buy and hold. This is just so
easy.
|
|
02/21/01
|
09:52:39
|
<Chris>
|
Then
in 1998, I was awaken to a margin call.
|
|
02/21/01
|
09:52:57
|
<Chris>
|
This
negative experience distorted my view that ""trading was just so
easy"".
|
|
02/21/01
|
09:53:12
|
<Chris>
|
With
the same momentum of my portfolio to the upside, it crashed to the downside.
|
|
02/21/01
|
09:53:40
|
<Chris>
|
It was
at this moment, that I had to create a different belief and it was one I
""chose"" to change.
|
|
02/21/01
|
09:54:06
|
<Chris>
|
I had
to learn about deeper issues of market functions and eventually about trading
psychology.
|
|
02/21/01
|
09:54:18
|
<Chris>
|
Evidentally,
the game wasn't just buy and hold and hope.
|
|
02/21/01
|
09:54:33
|
<Chris>
|
The
market would find a way to take the money from those that traded in this
fashion.
|
|
02/21/01
|
09:54:47
|
<Chris>
|
And it
cleared many out unfortunately last year that thought just like this.
|
|
02/21/01
|
09:55:08
|
<Chris>
|
So
what does my belief about trading entail now?
|
|
02/21/01
|
09:55:29
|
<Chris>
|
Trading
is a game that includes a funny circle.
|
|
02/21/01
|
09:55:37
|
<Chris>
|
1. I
started, making money with no effort.
|
|
02/21/01
|
09:56:00
|
<Chris>
|
2. I
continued, lost money with no effort (it doesn't take any effort to not press
sell button)
|
|
02/21/01
|
09:56:21
|
<Chris>
|
3. I
continued, learning all I could about the market and myself (considerable
effort)
|
|
02/21/01
|
09:56:35
|
<Chris>
|
4. I
am here now, trading again with basically minimal
""effort"".
|
|
02/21/01
|
09:56:42
|
<Chris>
|
The
difference?
|
|
02/21/01
|
09:57:05
|
<Chris>
|
I
trade with no effort from the beginning with the lack of fear because I had
nothing to tell me there is something to fear.
|
|
02/21/01
|
09:57:18
|
<Chris>
|
Margin
call instills fear.
|
|
02/21/01
|
09:57:45
|
<Chris>
|
I
learn risk and management principles, as well as develop my inner self to
trading.
|
|
02/21/01
|
09:57:52
|
<Chris>
|
Now I
have nothing to fear again.
|
|
02/21/01
|
09:58:05
|
<Chris>
|
I
don't feel the market can ever take more from me than I'm willing to allow
it.
|
|
02/21/01
|
09:58:48
|
<Chris>
|
Interesting
how a beginner and an experienced trader, can have the same belief, with a
separate understanding of the same market.
|
|
02/21/01
|
10:01:51
|
<Chris>
|
sorry
got booted
|
|
02/21/01
|
10:02:34
|
<Chris>
|
<Chris>
The major point about this:
|
|
02/21/01
|
10:02:35
|
<Chris>
|
<Chris>
The beginner's beliefs about trading are based on ""the market
making and taking his money"".
|
|
02/21/01
|
10:02:45
|
<Chris>
|
<Chris>
The experienced trader knows that it's ""himself"" that
is accountable for his trading and the money he risks and makes on each
individual trade.
|
|
02/21/01
|
10:03:23
|
<Chris>
|
The
beginner will never be able to progress to a professional unless he changes
this belief, that trading is about you and your accountability, and has
nothing to do with what the market ""does to you"".
|
|
02/21/01
|
10:03:58
|
<Chris>
|
There
is two more beliefs that I feel are major and then one or two minor ones that
I want to discuss.
|
|
02/21/01
|
10:04:07
|
<Chris>
|
The
next major belief is ""trading systems""
|
|
02/21/01
|
10:04:28
|
<Chris>
|
We
have seen so many out there, numerous texts on the subjects and I'm sure many
more to come.
|
|
02/21/01
|
10:04:47
|
<Chris>
|
""If
I can just find the right system, trading will be piece of cake""
|
|
02/21/01
|
10:05:13
|
<Chris>
|
We
know this to be false, as everyone's system doesn't yield consistent winners
from individual to individual.
|
|
02/21/01
|
10:05:29
|
<Chris>
|
One
trader makes more money than the other or doesn't make money at all.
|
|
02/21/01
|
10:05:40
|
<Chris>
|
The
system is the same, why are the profits different?
|
|
02/21/01
|
10:06:00
|
<Chris>
|
Trading
again is about you and the market is just a reflection of who you are at any
given moment.
|
|
02/21/01
|
10:06:19
|
<Chris>
|
Let's
go a bit deeper:
|
|
02/21/01
|
10:06:42
|
<Chris>
|
The
market moves up and down, as aggregate shifts of demand and supply lean to
one side or the other.
|
|
02/21/01
|
10:06:52
|
<Chris>
|
This
happens at all kinds of price levels.
|
|
02/21/01
|
10:07:16
|
<Chris>
|
This
basis for movement is what we as traders try to define and profit from.
|
|
02/21/01
|
10:07:49
|
<Chris>
|
Some
see it on a tape reading platform, some TA, and some don't on anything (they
make it up as they go)
|
|
02/21/01
|
10:08:12
|
<Chris>
|
When I
first brought brought up a chart of a stock, I saw a hill.
|
|
02/21/01
|
10:08:21
|
<Chris>
|
I
didn't see support/resistances.
|
|
02/21/01
|
10:08:34
|
<Chris>
|
I
didn't see capitulation events.
|
|
02/21/01
|
10:08:38
|
<Chris>
|
I
didn't see euphoric events.
|
|
02/21/01
|
10:08:43
|
<Chris>
|
I
didn't see accumulations.
|
|
02/21/01
|
10:08:45
|
<Chris>
|
I saw
a hill.
|
|
02/21/01
|
10:08:48
|
<Chris>
|
Why?
|
|
02/21/01
|
10:09:04
|
<Chris>
|
Becasue
there was nothing from previous experience to tell me what that hill meant.
|
|
02/21/01
|
10:09:17
|
<Chris>
|
What
moves within that hill were made up of.
|
|
02/21/01
|
10:09:34
|
<Chris>
|
I even
went so far as to send my father a chart:
|
|
02/21/01
|
10:09:45
|
<Chris>
|
Detailing
points of highs and lows saying
|
|
02/21/01
|
10:09:59
|
<Chris>
|
I'll
buy here, and sell there, when I sell there, you short and cover at the low.
|
|
02/21/01
|
10:10:10
|
<Chris>
|
Then
I'll buy again, we'll make a killing.
|
|
02/21/01
|
10:10:17
|
<Chris>
|
Gee
|
|
02/21/01
|
10:10:40
|
<Chris>
|
As
funny as this is, this was actually a great first step in my
progression..why?
|
|
02/21/01
|
10:11:27
|
<Chris>
|
Because
as I was trading, not seeing trading as this easy, not being able to
""buy the absolute bottoms, sell tops"" 100%% of the
time, I realized that there was much more to it.
|
|
02/21/01
|
10:11:46
|
<Chris>
|
So I
began to change my beliefs on what ""system"" I wanted to
use.
|
|
02/21/01
|
10:12:13
|
<Chris>
|
Mind
you, I still didn't totally realize that trading was about me at this point.
I still was working on market functionality at this point.
|
|
02/21/01
|
10:12:50
|
<Chris>
|
I used
Ken's over at MT for a while, before learning more about what Threei taught
me.
|
|
02/21/01
|
10:13:15
|
<Chris>
|
While
I was using Ken's methods, I began to try things on a mechanical basis.
|
|
02/21/01
|
10:13:40
|
<Chris>
|
Gainers/dumpers
methodology.
|
|
02/21/01
|
10:14:01
|
<Chris>
|
Again,
I was running into the same problem when I first began that I did when I was:
|
|
02/21/01
|
10:14:20
|
<Chris>
|
1.
Circling all highs and lows on the historical chart and saying...you do this
here, I'll do that there.
|
|
02/21/01
|
10:14:59
|
<Chris>
|
Things
were easy to see, but doing it still wasn't bringing consistent profits when
I first began it.
|
|
02/21/01
|
10:15:18
|
<Chris>
|
I saw
many others making money on their posts, so figured it had to be working, and
""I"" was just not figuring it out yet.
|
|
02/21/01
|
10:15:41
|
<Chris>
|
My
belief was the trading system was infallible, but I was not making it work
right.
|
|
02/21/01
|
10:16:28
|
<Chris>
|
Thankfully,
at this point in my trading, Threei began to buzz in my ear a bit more about
personal accountability, seeing things at deeper levels, trading based on
what is seen, not thought, etc.
|
|
02/21/01
|
10:16:46
|
<Chris>
|
My
beliefs began to change, not so much about the system, but about my place in
it.
|
|
02/21/01
|
10:17:33
|
<Chris>
|
I went
from thinking ""the system works, I suck"" to
""the system is just a system, I need to find out what in me won't
allow it to work""
|
|
02/21/01
|
10:18:11
|
<Chris>
|
You
have to realize that anyone's trading system, no matter what ""potential""
it offers on any given day, week, month, is normally not realized by
individual traders.
|
|
02/21/01
|
10:18:24
|
<Chris>
|
You
see trade performance for a week at +20 points.
|
|
02/21/01
|
10:18:50
|
<Chris>
|
This
assumes you trade every single trade, stop out at best price all the time,
get in at best price all the time and sell at best prices all the time.
|
|
02/21/01
|
10:18:52
|
<Chris>
|
Impossible
|
|
02/21/01
|
10:19:27
|
<Chris>
|
What
is needed is a change in a belief that:
|
|
02/21/01
|
10:19:46
|
<Chris>
|
The
system produces ""x"" potential and I can't do it so I
stink at trading to
|
|
02/21/01
|
10:21:25
|
<Chris>
|
""I
know that no system by itself is the key to profitability, it is how I choose
to develop my inner self"" to fully take part in opportunities provided
by the system.
|
|
02/21/01
|
10:21:49
|
<Chris>
|
This
takes us to our next major belief.
|
|
02/21/01
|
10:22:17
|
<Chris>
|
Those
who think that the market provides profit and loss are in my mind, mistaken.
|
|
02/21/01
|
10:22:29
|
<Chris>
|
You,
yourself, your choices decide this.
|
|
02/21/01
|
10:23:04
|
<Chris>
|
To let
the market dictate your profit and loss to any degree outside your
parameters, you lose control of your trading.
|
|
02/21/01
|
10:23:18
|
<Chris>
|
The
market is neutral.
|
|
02/21/01
|
10:23:29
|
<Chris>
|
It will
go up and down regardless of your position.
|
|
02/21/01
|
10:23:36
|
<Chris>
|
It
doesn't know who you are, nor does it care.
|
|
02/21/01
|
10:23:48
|
<Chris>
|
It
goes up, making emotional longs happy and emotional shorts unhappy.
|
|
02/21/01
|
10:23:54
|
<Chris>
|
Vice
versa with shorts.
|
|
02/21/01
|
10:24:09
|
<Chris>
|
I
added ""emotional"" because I will discuss emotion a
touch later.
|
|
02/21/01
|
10:24:33
|
<Chris>
|
The
idea here is that you, at this very moment, have some feeling within you
about yourself, your trading.
|
|
02/21/01
|
10:24:49
|
<Chris>
|
Either
you made money this morning and are anxious to trade again, as you are
confident or
|
|
02/21/01
|
10:25:14
|
<Chris>
|
you
didn't make money and are frustrated, ready to give up today.
|
|
02/21/01
|
10:25:40
|
<Chris>
|
Or, you
might be profitable and willing to rest this afternoon, or you lost money and
are ready for revenge this afternoon.
|
|
02/21/01
|
10:25:49
|
<Chris>
|
""I'll
show this stupid market for taking my money""
|
|
02/21/01
|
10:26:42
|
<Chris>
|
The
change in belief we need here is that the market defines your choices to:
|
|
02/21/01
|
10:27:06
|
<Chris>
|
I make
my choices and after I make my choice, the market does whatever it wants,
like it always does.
|
|
02/21/01
|
10:27:50
|
<Chris>
|
Many
might think: but if the market does what it does, and hits my stop or profit
target, then how do I still have control?
|
|
02/21/01
|
10:28:13
|
<Chris>
|
The
market moved to make me money or lose my money...
|
|
02/21/01
|
10:28:27
|
<Chris>
|
You
still have to hit the exit button right?
|
|
02/21/01
|
10:28:44
|
<Chris>
|
How
many times early on did we have a great profit, only to turn it to a loss?
|
|
02/21/01
|
10:28:53
|
<Chris>
|
How
many times did we have a small loss turned into a larger one?
|
|
02/21/01
|
10:29:07
|
<Chris>
|
Even
know...
|
|
02/21/01
|
10:29:20
|
<Chris>
|
know -
now
|
|
02/21/01
|
10:29:40
|
<Chris>
|
Even
now, I still struggle with what I envision to happen, versus what I just did.
|
|
02/21/01
|
10:29:49
|
<Chris>
|
SYBS
for example...
|
|
02/21/01
|
10:29:57
|
<Chris>
|
18 3/4
entry, 18 1/2 stop
|
|
02/21/01
|
10:30:20
|
<Chris>
|
18 1/2
entry, 18 3/4 exit, envisioning that it would go back over 19 if that was
indeed the bottom.
|
|
02/21/01
|
10:30:31
|
<Chris>
|
Where
did the conflict come in?
|
|
02/21/01
|
10:30:46
|
<Chris>
|
Maybe
I just wanted to make money from this stock that took some of my money away
before.
|
|
02/21/01
|
10:30:55
|
<Chris>
|
Maybe
I need a confidence builder.
|
|
02/21/01
|
10:31:06
|
<Chris>
|
Maybe
I just didn't want to be in it..who knows.
|
|
02/21/01
|
10:31:16
|
<Chris>
|
The
point being...the market just moved how it wanted.
|
|
02/21/01
|
10:31:21
|
<Chris>
|
It was
my choice to exit where I did.
|
|
02/21/01
|
10:31:29
|
<Chris>
|
And
therefore, the control stays with me.
|
|
02/21/01
|
10:31:47
|
<Chris>
|
Your
belief about the market hurting you, forget it.
|
|
02/21/01
|
10:31:53
|
<Chris>
|
When
you do, you regain control.
|
|
02/21/01
|
10:32:00
|
<Chris>
|
When
you regain control, what is there to fear?
|
|
02/21/01
|
10:32:19
|
<Chris>
|
If
there is nothing to fear, how can you fail?
|
|
02/21/01
|
10:32:55
|
<Chris>
|
Even
if you don't profit, if you trade ""unemotional"", where
each uptick/downtick is not euphoria or pain, then you trade successfully.
|
|
02/21/01
|
10:33:16
|
<Chris>
|
This
brings me to a few more beliefs:
|
|
02/21/01
|
10:33:34
|
<Chris>
|
Actually
just two, I just noticed time :)
|
|
02/21/01
|
10:33:57
|
<Chris>
|
If the
market can not hurt us, why is it that we feel other's opinions of stock
movement can?
|
|
02/21/01
|
10:34:25
|
<Chris>
|
How
many times early in our trading do we enter a stock, someone says, market is
moving in opposite direction, so we exit immediately?
|
|
02/21/01
|
10:35:36
|
<Chris>
|
IF you
have resolved to make a choice in entering that trade, knowing that market
can not hurt you outside of your predefined risks, then how is it that one
statement from someone you know can make you change your belief so fast?
|
|
02/21/01
|
10:35:47
|
<Chris>
|
How
many times am I wrong?
|
|
02/21/01
|
10:35:50
|
<Chris>
|
is
Threei wrong?
|
|
02/21/01
|
10:36:06
|
<Chris>
|
How
many times does ""x"" person read the market wrong
|
|
02/21/01
|
10:36:15
|
<Chris>
|
How
many times do analysts downgrade the lows
|
|
02/21/01
|
10:36:17
|
<Chris>
|
upgrade
the highs
|
|
02/21/01
|
10:36:46
|
<Chris>
|
You
have to change your belief that other's opinions dictate stock movement to
any great degree.
|
|
02/21/01
|
10:37:09
|
<Chris>
|
Other's
opinions, such as in this room, are to define areas of interest.
|
|
02/21/01
|
10:37:24
|
<Chris>
|
Reversal
points, breakout points, breakdown points, range points, etc.
|
|
02/21/01
|
10:37:43
|
<Chris>
|
Where
I trade for 3/8 point, Threei may hold for 1 point.
|
|
02/21/01
|
10:38:16
|
<Chris>
|
The
pivot was the same, the entry maybe different.
|
|
02/21/01
|
10:39:20
|
<Chris>
|
But in
the point I exit at 3/8, Threei thinks I 'Know' something that he does not?
|
|
02/21/01
|
10:39:28
|
<Chris>
|
When
you do this, you lost control.
|
|
02/21/01
|
10:39:48
|
<Chris>
|
I'm
long 'x' stock, and someone says, this stock looks weak, I'm shorting it.
|
|
02/21/01
|
10:40:03
|
<Chris>
|
So I
exit my long because I think he knows something that I don't?
|
|
02/21/01
|
10:40:19
|
<Chris>
|
Nonsense...he
has a different perception
|
|
02/21/01
|
10:40:49
|
<Chris>
|
This
guy that just went short because why?
|
|
02/21/01
|
10:41:05
|
<Chris>
|
Because
something in the tape, something on the chart, something within him says,
time to go short.
|
|
02/21/01
|
10:41:20
|
<Chris>
|
This folks,
is what makes the market work.
|
|
02/21/01
|
10:41:26
|
<Chris>
|
Different
beliefs about price action.
|
|
02/21/01
|
10:42:01
|
<Chris>
|
If you
begin to believe everyone else's, not trusting in your own, you will never
progress into a successful trader.
|
|
02/21/01
|
10:42:43
|
<Chris>
|
If you
feel that ""one guy's"" contrary position creates a
negativity in your position, unless this guy has millions, it's an argument
that needs rectified.
|
|
02/21/01
|
10:43:21
|
<Chris>
|
The
belief of one comment or one action by another individual dictates your view
of the trade, needs to change to:
|
|
02/21/01
|
10:43:45
|
<Chris>
|
I
believe in my perception of the trade, either the market does what it does
allowing me profit, which I'll take, or it will create a small loss, which I'll
take.
|
|
02/21/01
|
10:44:02
|
<Chris>
|
Last
belief that I think is most important:
|
|
02/21/01
|
10:44:37
|
<Chris>
|
Creating
certainties will lead to my success.
|
|
02/21/01
|
10:45:11
|
<Chris>
|
How
many traders pour through endless charts/books/seminars/trade shows/etc.,
only to not trade 6 months later?
|
|
02/21/01
|
10:45:22
|
<Chris>
|
The
more I learn, the better I will do?
|
|
02/21/01
|
10:45:42
|
<Chris>
|
The
more I know, the greater my pool of resources will become.
|
|
02/21/01
|
10:45:49
|
<Chris>
|
Let me
ask you this:
|
|
02/21/01
|
10:46:39
|
<Chris>
|
Trader
A...#1 ranked Market Analyst in the world. Fears losing money. Never traded
his own account.
|
|
02/21/01
|
10:48:21
|
<Chris>
|
Trader
B...High school diploma, trusts himself to do the right thing, accountable
for his actions. Willing to learn what he needs to succeed, but isn't quite
there yet.
|
|
02/21/01
|
10:48:46
|
<Chris>
|
You
have 10K to give Trader A or B.
|
|
02/21/01
|
10:48:55
|
<Chris>
|
I'd
give mine to B, who would you choose?
|
|
02/21/01
|
10:49:10
|
<Chris>
|
Trader
A, knows all there is to know, but can't make a dime.
|
|
02/21/01
|
10:49:25
|
<Chris>
|
Trader
B, willing to learn and is accountable for his trading.
|
|
02/21/01
|
10:49:57
|
<Chris>
|
To me,
B has a much greater chance to profit my 10K on active trading.
|
|
02/21/01
|
10:50:01
|
<Chris>
|
Major
point is this:
|
|
02/21/01
|
10:50:22
|
<Chris>
|
The
more you know, yes, this is much better than being ignorant about the
markets.
|
|
02/21/01
|
10:51:19
|
<Chris>
|
Creating
certainties, in the sense that, ""this outcome has to
happen"", is not what we are after.
|
|
02/21/01
|
10:51:42
|
<Chris>
|
We are
about putting the odds in our favor, having an unemotional approach to taking
the opportunities before us.
|
|
02/21/01
|
10:51:51
|
<Chris>
|
If we
want certainty, we won't find it in the market.
|
|
02/21/01
|
10:52:15
|
<Chris>
|
We've
already defined the market as uncertain, moving how it does based on factors
of aggregate supply and demand.
|
|
02/21/01
|
10:52:41
|
<Chris>
|
There
is no way we could know from moment to moment, knowing when these shifts
outweigh each other
|
|
02/21/01
|
10:52:55
|
<Chris>
|
offering
us more or less profit on each tick.
|
|
02/21/01
|
10:53:36
|
<Chris>
|
You
must shift your belief that if ""I know everything there is to know
about the market, I will succeed"" to
|
|
02/21/01
|
10:54:16
|
<Chris>
|
I will
learn all I can about the market, but still realize that I have to know and
trust myself, when signals present themselves.
|
|
02/21/01
|
10:54:41
|
<Chris>
|
I
can't have fear of loss, I can't let opinions of others dictate my trade, I
can't second guess myself.
|
|
02/21/01
|
10:55:15
|
<Chris>
|
I
can't be emotional. I will see what I see, make my choice for entry, make my
choice for exit.
|
|
02/21/01
|
10:55:42
|
<Chris>
|
The
market will decide which, but I will stay in control of my trade to execute
at levels that I deem necessary for my survival as a trader.
|
|
02/21/01
|
10:56:21
|
<Chris>
|
Sorry
this one was a bit long, but Douglas and McCall have written books on this
:)..this is just something of the surface about changing Beliefs :)
|
|
02/21/01
|
10:56:26
|
<Chris>
|
I am
finished.
|
|
02/21/01
|
10:56:34
|
<Chris>
|
This
room is now unmoderated. Everyone may speak again.
|
|
02/21/01
|
10:56:45
|
<Chris>
|
Thanks
for your attention gang :)
|
|
|
|
|
|