© Ed Seykota, 2003 - 2005 ... Write for permission to reprint.

Ed Seykota's

Frequently Asked Questions

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TTP - The Trading Tribe Process  ...  Glossary

  TTP Workshop  ...  Resources

 

December 11-24, 2004

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Questions

(Quotes from Ed in Red)

Answers

Thu, 23 Dec 2004

 

Love

Ed says: Trying to get out of the loop is just part of what propels you around the loop.

The positive intention of your loop is to get you to feel your feelings.

You might try taking your feelings about your loop and about commitment to your Tribe.

The source for the drama is likely one of your independent forms seeking validation.

The girl moving away does not dis-solve the drama.

She may soon re-appear in a different body and present opportunities to re-solve the drama, over and over until you dis-solve it by integrating your feelings.*

If you already have what you want, you do not have a problem. A problem is a difference between your desire and your perception of what you have ...


Yes, Ed. That's often the case. I am trying to locate and integrate my independent forms.

 

One of them, concerning relationships, is a very supportive, affectionate relationship / friendship with an older married woman.

 

She's very receptive, supportive and affectionate. A platonic love though. We have a lot of mutual respect and affection. She often inspires about the qualities I expect from my would-be wanted girlfriend.

 

I like to tell her about my feelings ... In short, I love her.

People and relationships and situations are all outside yourself. 

 

Your forms are sets of somatic properties, such as feelings, body positions and motions, that are inside yourself.

 

Your tribe can help you develop your stray forms (and integrate them) by receiving your feelings and by encouraging you to "take them to term." 

 

Your relationship seems to place you as the sender and your friend as receiver.

 

You might consider expanding your relationship to include you as the receiver, her as the sender.

 

 

 

Salvador Dali

 

Dream Caused by the Flight of a Bee

Around a Pomegranate

One Second Before Waking Up, 1944

 

Everyone has a unique set of images

to represent love. Some are genetic, some societal. Fred pumps others is an attempt to get us to experience our stray forms.

 

Clip: http://www.allposters.com/

gallery.asp?aid=95642888&item=121757

Thu, 23 Dec 2004

 

Sarasota Tribe


Ed,


I'm interested in starting a tribe in my area (Sarasota County FL). I've learned from 20 years of trading experience that the limitations to my success are internal emotional or psychological forces that I may not be in touch with, or in control of. I'm delighted to learn of the existence of The Trading Tribe, and am enthusiastic about the potential that may be unlocked by a mutually supportive group. Too many traders endure the agony and ecstasy in solitude.

 

 

 

 

Welcome !

 

Sarasota

Florida

 

You are in the Directory

 

 

 

Sarasota

 

Clip: http://www.sarasota-florida.de/

Sarasota-Aireal1.jpg

Wed, 22 Dec 2004

 

Breath Work Weekend Feedback


Hi Ed !

A few days pass since the Breathwork weekend. I notice various phenomena, insights, AHA's.

 

Summing them, I realize I now simply see each experience of life clearly. I see through things and people. It's as if there used to be a layer of gauze over my mental eye. Perception was fuzzy, unclear on many issues. I remove it in the Breathwork process.

 

Now I know answers, which seem to be hooked to each question that arises. I see essences beyond appearances. I see conclusions of processes, so act efficiently to get there ... or see it's not what i really intend, and do something more useful.

A little mistake to report. I want to send our hike photo to participants, and accidentally also send it to a CPA firm whose pension i manage. The CPA writes back he loves hiking too, and asks if he can send me more money. I say yes. He does.

Thank you for organizing this extraordinary event.

 



Saturday Morning

Hike at Spooner Lake

 

Mistakes and accidents are intentions for which we are unwilling to claim responsibility.

 

 

 

 

Fred wants us to experience *!!@*!@

and arranges an accident.

 

If you are ambivalent

about expanding you business,

you might have to do it by accident.

 

Clip: http://www.webgifs.net/

free-gif/cartoon/accident.gif

 

Wed, 22 Dec 2004

 

Forex


Dear Mr. Ed Seykota,

How are you?


I've known forex since 3 months ago and currently I'm working at a securities company in Jakarta. I'm very interested with forex trading and i'm enthusiastically are looking for guidance.

Please give me some advice on where to look for trading guidance in Jakarta, Indonesia.

Thank you very much for your attention.

You might look through this site, and through www.turtletrader.com.  Ultimately, you might have a look at and inside yourself.

 

 

Viewing Yourself Requires a Mirror

 

like this 3.7 meter liquid mirror

or like your Trading tribe.

 

Clip: http://wood.phy.ulaval.ca/images/

construction/3-7-m.jpg

Wed, 22 Dec 2004

 

Seasons Greetings


Dear Ed Seykota,

Best wishes for 2005 and Merry Christmas.

Thank you.  All the best to you and yours.

Wed, 22 Dec 2004

 

Risk



Hi Ed

Thanks for maintaining your habit of answering all the emails sent to you. It is such a wonderful site to read.

I have been trying to define and test a lucrative stock trading timing strategy (which is employed on a watch list of stocks with quickly growing cash flow and EPS). It centers around picking dips in up-trends (yes it is a simple philosophy). I find that I often have to wait quite a while for a stock to resume its uptrend however, if it does at all. I am now testing getting on fast trends that have already started, without waiting for dips at all - just hopping on. That feels a lot riskier to me, as I feel as though the stock could fall back to resistance more easily than if it is already at resistance (obviously!).

In your experience, is hopping on a fast trend riskier or less lucrative than waiting for dips?

Thanks

Risk means:

 

1.  Something dangerous, as in  "Trading is risky."

 

2.  A consequence, as in "We

risk making (or losing) money on this trade. "

 

Hopping on something and waiting for something are initiating activities, not complete transactions.

 

To determine which is the most risky, you have to consider your intentions during the entire relationship.

 

 

 

 

 

 

Determining Which of These

is the most risky

 

depends a lot on your intentions

for the entire relationship.

 

 

Clips:

 

http://hometown.aol.com/davie1720/

myhomepage/images/banner02.jpg

 

http://www.2sportscars.com/sexy7.shtml

 

http://www.nyu.edu/classes/

keefer/nature/mypage.html

Tue, 21 Dec 2004

 

Tutoring


Dear Mr. Ed Seykota,

First of all, let me thank you for your time in reviewing this email. I sent an email earlier, but I'm not sure if it went through or not.

 

If it did, I apologize for emailing you again. Anyway ... I am writing you because I seek to deepen my understanding of system based trend following and from what I can tell you are possibly the best source for that type of information. I am a frequent visitor of turtle trader and have also visited your site on many occasions.

 

I find both sites to be extremely interesting and persuasive. In surfing the sites I noticed that you have been a mentor for a number of fortunate individuals over the years, so I was wondering if you still offer your expertise in any way?

 

Either as a teacher or by managing money on someone else's behalf? If so, I would deeply appreciate your guidance as either a mentor or as a financial advisor (after all you said it best when questioned in Market Wizards about what an average investor should do with his/her money and that was to find a good money manager and do something else with their time).

 

So if you don't mentor any longer, my desire is to invest my money from this point forward with you ...

 

I can assure you that if you accepted me as a client I would not allow my emotions to get the best of me. Well this email is getting a bit long now, and since it sure isn't my intention to take up lots of your time I will let you go. Again, I appreciate your time and earliest response to this request. Happy Holidays!

I provide mentoring to many people through this site and its various activities.

Tue, 21 Dec 2004

 

Teaching and Learning


Ed,

It is good to learn from you. Thank you. On the other hand it feels good to teach.


Cheers,

Yes, ultimately, teaching and learning become one.

Tue, 21 Dec 2004

 

TTP and Positive Thinking


Mr. Seykota,


How do TTP and positive thinking / affirmations fit together, if at all?


If I reinforce a positive idea, like saying "I can do this," but really feel uncertainty, do I go against TTP?

Thank you and best wishes for the holidays

The term "Positive Thinking"  is ambiguous until your thoughts, feelings and natural gifts all align on the same objective.

 

You might take your uncertainty to your Tribe to find right livelihood.

 

 

People with Stray Forms

keep acting out drama

 

People with integrating forms

find Right Livelihood

 

either way

people get what they want.

 

 

Clip: http://www.rt-tech.com/rtt/

funny/torture.gif

Tue, 21 Dec 2004

 

Motivation

Hello Ed,

1) What are the additional reasons which drive a trader to keep trading when he has already made over $100 million on the stock market ?

I mean, that's the amount of money that would take 4 generations to spend. The goal of any trader who takes the step of becoming a professional trader is to reach out somewhat of a freedom and to become financially independent.

 

But once they're done, they have fulfilled their best expectations, what are the reasons that drive [Trader Names] to keep trading their own account whereas they are among the wealthiest people on earth ?


2 ) The interview of your good friend Michael Marcus has always been deeply inspirational for me and his way of approaching the markets has really been very helpful in shaping out my own trading systems.

 

I've surfed the Web in order to find out how he has been and what he does nowadays but sadly enough, I have found no data so far. Unless it's his own decision to keep his intimacy private, could you please send me a bunch of information about him, his actual life ? Where is he ? What does he do now ?

Thank you so much for your help, warmest regards

Reasons likely do not drive successful traders.

 

Nor does money.

 

Likely, the thing that drives successful traders is the same thing that drives you to do things.

 

You might examine the feelings that motivate you to write to FAQ.

 

FAQ does not reveal personal information.  See ground rules.

 

 

 

What do you think - we could get started on that motivational research - or wait until after lunch.

 

 

Clip: http://psych.wisc.edu/henriques/

resources/motivation.gif

Mon, 20 Dec 2004

 

Testimony from a PhD


Mr. Seykota,

I have a doctoral degree in Engineering Economics and studied investment and finance for many years. In addition, I had read hundreds of trading books and attended dozens of investment seminars.

Unfortunately the result was disappointing year after year, through bull and bear markets.

My losing habit was amazingly transformed into a profitable endeavor after I started attending the Trading Tribe, clarified the intentions, and followed the trend trading strategies.

Now I find more quality time and sharper focus everyday. I attribute all these positive outcomes to you and your Trading Tribe process.

Yes.

 

 

 

Trading Tribe University (TTU)

 

is a place where the students

 are the teachers.

 

Mon, 20 Dec 2004

 

Incredibles


Ed,

Hope this email finds you well.

Have you seen the film The Incredibles?

There's a cute little cartoon fable as warm up before the film (about a sheep, I won't spoil it.) Anyway well worth watching.

Regards

Willingness lubricates the soul.

 

 

 

This Lamb in Boundin'

loses all his hair.

 

He becomes a pariah among the farm animals and turns downright sheepish. He learns that bald is not that baa-aad, accepts his form and willingly experiences his annual depilation in shear delight.

 

Clip: http://itsb.ucsf.edu/~vcr/

CskinArchive_28.html

Mon, 20 Dec 2004

 

Fusball

 

I used to play ... but never like this.


http://www.w2knews.com/rd/

rd.cfm?id=041213FA-Table_Football

Yes, mastery transcends limits.

 

 

Some Play

 

some play well

 

and some are at one with the game.

 

Clip: http://www.longgreenbc.org/images/

03-14-03%20ice%20skating/

ice%20fusball.jpg

Sun, 19 Dec 2004

 

Really


Ed Seykota:

I ... wonder ... if u REALy reAd ur emails : )

You might consider taking your wonder to term - and experience being wonder-full.

 

 

Wonder

of the Hotc‚k Tribe, circa 1898

 

during the Trans-Mississippi Exposition,
Omaha, Nebraska

 

http://hotcakencyclopedia.com/

People/image.Wonder.catlin.jpeg

Fri, 17 Dec 2004

Position Sizing


Hi Ed I am puzzling over position size and my gut is telling me that I am trading too many equities and the randomness of my picking strategy piques my curiosity.

If I set position size per trade at: (0.05% * Equity)

this formula results in trading a maximum of 200 equities. 200 * 0.05% = 100%

My gut is telling me that a maximum of 200 equities in a portfolio is too high. The simulations I have run show that 0.05% is a good approximation for the system I am using.

I started building the portfolio in August of this year and have completed it. Today the portfolio is up 22%. Regardless, of what my gut is telling me, I am trading a portfolio with 121 equities, and the results are good. Thought my trading capital limited the portfolio to 121 equities, my gut still tells me that 121 maybe too many.

I am A bit confused about the definition of heat. I was under the impression that heat was a synonym for the distributed bet size -- not drawdown. The drawdown on my equity at this moment of now is 34.34%.

This is if all equities in my portfolio dropped below my exit prices today I would lose more than 34.34% of my portfolio value and a 21.16% loss of initial seed capital (fish bait).

Onto the other bother, I select equities that are at 256 day highs or higher and sell when they fail to make a new high for 168 days. If more than one equity is available to buy I use C++'s STL random shuffle function to break the tie. I have run a few simulations with different picking strategies and random shuffle works better than any of the alternatives that I tried.

The number of equities in the portfolio and the randomness of the picking strategy I use provoke me to change the system. My stubbornness persists to change my system and so does the itch to change it. After crunching my risk in the now I feel a bit better.

Having gut feelings and being confused are both quite normal.

 

To the to the extent you are willing to feel your feelings, and celebrate their positive intentions, they can support following your system.

 

People who enjoy confusion seem to like to solve puzzles and invent things.

 

 

 

Neat Optical Illusion

 

The squares [A] and [B]

are the same color.

 

 

 

Another Neat Optical Illusion

 

Stare at this picture for a few minutes

and you may notice

a waterfall in the background

 

http://www.misetings.com/gallery/

albums/userpics/opticalillusion.jpg

 

http://www.dougshaw.com/

shadesofgrey.jpg

Fri, 17 Dec 2004

 

Some of my Favorites Quotes from FAQ

Dear Ed,

In reading the FAQ I am amazed by your insight, and by the insight that you help others find in themselves.

These are some of my favorite quotes from FAQ. Some of them are profound, some witty, some cutting; but I see them all as being written by a man trying to help other people better their lives.

Thank-you Ed. You make me laugh and, in this ever-present and expanding moment of now, give me pause for thought.

My very best wishes to you and your family for a Happy Holiday and a safe and peaceful 2005!

Very best regards,

-----


Ready to Jump and Trying to Jump are not the same as jumping. Same goes for trading.

Old Friends ... like old Trees, intertwine and support each other at deep levels.

The lizard ... just hangs around on the rock ... and waits and waits and waits ... for his pattern to show up ... and when a bug comes along, he makes his move, right from the gut, without thinking about it. Moral: When trader becomes that automatic, then he, too, can hang around on a rock and catch a lot of bugs.

Dow Theory is consistent with Following Trends. Dow Theory does not speak to the issues of position sizing, portfolio selection, risk management or maintaining a cheerful outlook.

Aamznig ! Sonuds lkie it mghit be Ferd at wrok

The difference between e-TTP and TTP might be like the difference between learning to ride a bicycle over the internet and learning to ride a bicycle with your father

The markets tend to discount (now) many things that are not (now) happening. The market also tends to discount many things that never happen (now).

If you really have that information, you might as well go for 100% of the move - or even more, if you can guess all the wiggles - the sky's the limit.

The fossils exists only in the now. Your thoughts about "30,000 years ago" exist only in the now. Everything you can experience exists only in the now. Yep. It's Still Now.

What markets do you trade? Trending.

A Fish - at One with the Water sees nothing between himself and his prey. A trader at one with his feelings feels nothing between himself and executing his method.

Rule of thumb for passive trend following systems - allow about 50% of your expected annual profit for drawdowns - so if you want 1,500% per year, you might allow for 750% drawdowns.

So none of the equations balance. The essay is consistent with an author who is unwilling to experience his own ignorance.

Ed makes no predictions about results of consulting - other than you get to spend some time with Ed and you get to pay a fee.

Tinker Bell for some, is the gong that sounds to announce the start of trading.

Yes, the trader has no provision for shorts in his system. It also has no provision for selling pretzels at baseball games, another profit opportunity.

His curious term "incoroporated," might be a Fredian synthesis of "incorrectly - appropriated."

The Ultimate Guide to Reducing Debt and Achieving Financial Freedom It has only one chapter, entitled, "Stop Buying So Much Crap," and the chapter only contains five words.

No Matter When You Look at a Clock It's Still Now

While you wait to become the trader you want to be, you might as well do the things  the trader you  want to be does.



Fred is a feelings pump

Can you point me in the right direction? Make a loose fist, extend your index finger to the fully outright position, and place the protruding digit on the center of your chest.


AHA!

For years and years, I recall warning people about quote machines.  

 

So I suppose it is somehow fitting for me to become one.

 

 

 

Old Quote Machine

 

 

Clip: http://www.samhallas.co.uk/

museum/ticker.jpg

 

Thu, 16 Dec 2004

 

Scribe Tribe


Okay, please excuse my expression, but your TT concept is [expletive] brilliant!

I stumbled on this site by accident of search engine, and I couldnít leave! I must continue reading, but Iíll tell you I am interested in helping out if I am able.

If nothing else, I would at least like permission to incorporate some of your concepts into my little world.

 

I run a writers group for playwrights on the campus of [University]. Itís kind of a workshop with group goals sort of thing, but we could benefit immensely from the addition of your concepts.

I also notice that you have no Tribal reps in [my area] Ö Iíll pass your site around, and maybe we can change that.

Thank you for your time - but mostly, thank you for your work and insight!

I know of a Trading Tribe for Co-Dependent women and another one for Presidents of Businesses. You might like to start a Tribe for Playwrights.

 

 

 

Shakespeare

Earns Fame and Fortune

 

by running his dramas

 

 

Clip: http://www.geocities.com/

cherrie11426/shakespeare.html

Tue, 14 Dec

 

No Answer

Hi Ed,


I've tried contact the trading tribe here in Brazil and I haven't had any answers.


Please Could you help me ?

You can start your own / see list at end of January.

Mon, 13 Dec 2004


Dear Ed,


I was a fortunate member of IV TT in the summer of 2003.

I came to the point in my evolution when the only thing I want from the market is money.


Now, the question is how to extract it.

Out of all the people I know you are the most qualified person to do it. Hence the question: Can I place my money with you and split the profits?

 

I have 10,000 USD risk capital and can accept 35% draw-down.

 

I still plan to trade and actually am trading right now with poor results. "Ars longa , vita brevis" - Art is long , life is brief.

 

It maybe more profitable to have a part of big return than 100% of a small one. I accept your style, I know there is no guarantees, nothing can be predicted, if the markets trend you catch the trend, that is all I need. I do not have guts to stay with a winning trade, you may.

Thank you for the work you are doing with the TTP and this website. It is refreshing and helpful.

You are likely your own best investment.

 

You might consider spending $1,000 on materials to help you develop your career or master some subject you like.

 

When you have a couple years worth of living expenses in the bank, and also something extra, you might consider putting some of that extra into the markets.

 

 

When You Get Lost in Your Art

 

You Find Yourself

 

Clip: http://www.commercialsihate.com/

store/self.jpg

Sun, 12 Dec 2004

 

Sexual Orientation

 

Thanks for your fine emotion management site.

Are you heterosexual ?

You might consider exploring your tendency to define people by their sexual orientations.

 

As the years pass, I seem to be getting more forget-o-sexual.

 

FAQ does not reveal personal information. See Ground Rules.

 

 

Bobby, Dale, Francis Gene and Pat

know that Sex is mostly in the mind

 

and that names

do not indicate sexual orientation

or even gender.

 

Clip: http://www.nerve.com/

photoday/121.jpg