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Ed Seykota's

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April 11 - 18

 

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Questions

(Quotes from Ed in Red)

Answers

Mon, 18 Apr 2005

 

The Present


Ed,

Since your Book web pages were posted near the end of March, I kept rechecking those web pages. Yet, until now, I repress my emotions around it.

Today, I discover the sample pages. I would guess that previous they were there but my CM refuse to acknowledge them. On Book page 16, 3rd paragraph, CM opens to Fred pouring out feelings of anger and resentment at having to pay for the book on top of previous two workshops. I SHOULD get it free. I welcome my feelings and ask for more.

The next moment I am experience myself as an angry boy, stomping mad. Itís not fair I have to pay for college and my older and younger siblings will get it all free, along with others things too.

I see how I continue that system by making it uncomfortable for others to give to me, for me to do so, or for myself to receive gifts. I feel that. Ask for more. Next, I experience my system includes not giving myself what I need or highly desire that would improve my life unless I tried every avenue of trying to manipulate the other to give it to me or at a discount.

 

Even after I earn the money to fully give it to myself, often, I would not or only allow myself to by the Cheaper one and hang on to my money. I deny myself the very gift that would soar my lifeís quality and joy. I live my story (maintain my system); Iím not worth the reward for my efforts. I feel lighter, happier, and excited about my possibilities.

Again, thank you for being you, sharing your gifts, passions, and your being-ness. I continue to gain fabulous value from reading and writing to FAQ, my two break through workshops experiences, and over one and half years of committed active participation at our local bi-weekly TT attendance. Hee Hee Hee, local I say, only like five hours round trip travel time for our 2 hour meeting. And I thank myself for being me, my courage to accept what I can, appreciate what I can, and sharing my gifts and myself.

My check is in the Mail. Hee Hee Hee. I already loving my gift, an awesome present. Oh, an aside, I just notice on rereading my letter, the word play of present, two meanings: a gift and in the now moment. YES.

Good work.

 

 

 

What's In Your Pocket

is important.

 

Knowing what to do with it

is essential.

 

Worrying about

what's in the other guy's pocket

is distracting.

 

Hint: substitute "portfolio" for "pocket"

and re-read.

 

Clip: http://members.madasafish.com/

~cj_whitehound/Rats_Nest/

Ship_Rats/Gallery1.htm

 

Mon, 18 Apr 2005

 

Incorrigible


Ed Says: In cases where the sender (1) keeps complaining about his official drama and (2) does not move forward with TTP, the sender likely has a super - drama about being incorrigible.

A receiver with a knot of feelings about needing to fix others can easily fall into co-drama.

The receiver's TTP move, is to dissolve his own "need to fix" until he is clear enough to tolerate receiving "incorrigible" from the sender.

At that point the whole system collapses into bathos.


Ed,


One year before you gave me this response to my constant complaints and inability to move forward to TTP, with regard to some specific issues.

I also notice how the theme of incorrigible senders gains your attention, as you devote a chapter about it on your book.

To this time, I am aware that the "super-drama" of being "incorrigible" revolves around a deep "super-knot."

I sometimes have this feeling of utter failure with regard to some plans and wishes that never came true, despite my efforts.

 

As I probe it, I feel this deep interior loneliness, from which I have always been trying to escape as it pulls me further and further into it. Do you also feel the same sometimes? Do you believe in fate?

You once told how you like Dickson Watts' quotes. And he quotes: "To conquer fate, go ahead to meet it." Is TTP all about going ahead to meet it?

Yes.

 

Your receivers are essential in assisting you to meet your feelings  and to convert them from adversaries into allies.

 

Absent a Tribe of receivers, you are likely to continue skillfully avoiding your feelings.

 

 

 

Fire Walkers Know

 

encouragement

helps you keep

your feet to the fire

 

 

Clip: http://www.adventureclub.info/

albums/firewalk/Fire_Walking_Coleen_2.jpg

 

Sat, 16 Apr 2005

 

Wants to Start a Tribe


I have just come across your website and was so moved to send you this e-mail.

 

I would very much like to know more about your organization and how to start a group in my area.

See Tribe Directory - How to Join, above for instructions.

Fri, 15 Apr 2005

 

MIT Pranksters at Work

Hi Ed!

You may know about this already. I think it is pretty funny and pretty revealing about how academia sometimes works.

Scientific Conference

Falls for Gibberish Prank



Fri Apr 15, 8:32 AM ET - Reuters
By Greg Frost

CAMBRIDGE, Mass. (Reuters) - A bunch of computer-generated gibberish masquerading as an academic paper has been accepted at a scientific conference in a victory for pranksters at the Massachusetts Institute of Technology.

Jeremy Stribling said on Thursday that he and two fellow MIT graduate students questioned the standards of some academic conferences, so they wrote a computer program to generate research papers complete with nonsensical text, charts and diagrams.

The trio submitted two of the randomly assembled papers to the World Multiconference on Systemics, Cybernetics and Informatics (WMSCI), scheduled to be held July 10-13 in Orlando, Florida.

To their surprise, one of the papers -- "Rooter: A Methodology for the Typical Unification of Access Points and Redundancy" -- was accepted for presentation.

 

Stribling said conference organizers had not yet formally rescinded their invitation to present the paper.

The students were soliciting cash donations so they could attend the conference and give what Stribling billed as a "randomly generated talk." So far, they have raised more than $2,000 over the Internet.

Story: http://story.news.yahoo.com/

news?tmpl=story&cid=573&

e=8&u=/nm/odd_gibberish_dc

With a little practice, they might be able to produce market commentary.

 

 

 

Occasionally

A Professor of English

 

holds the line.

 

Clip: www.dickgoodman.com/

 Marketing.html

Fri, 15 Apr 2005

 

Trend Following and Religion



In my religion, when a beloved passes away we should moan his passing for only three days and after that life should come to normal by accepting the judgment of god.

In trend following, when a stop loss is hit we should accept the stop loss and not buy/sell until the price reaches the buy/sell point again.

The distance between the stop loss and the buying interval point is a moaning period which is healthy to the trading system by making a breathing period which minimizes losses and gives the price space to show direction before buying/selling again.

Regards,

FAQ does not tell people what they should do.  See Ground Rules.

 

Religions tell people what they should do.

 

 

 

I don't know about you.

I only see a couple of them

that work for me.

 

 

Clip: www.mwt.net/~teiwes/ cartoons.htm

Wed, 13 Apr 2005

 

Request to Bypass the Ground Rules


Hi Ed,


In your Market Wizards interview Schwager tell you don't have a quote screen at your desk. He says you run your software at the end of day and send orders to your brokers for next day. Do you still trade this way?

Thanks

FAQ does not offer specific trading advice or reveal personal information.  See ground rules.

Wed, 13 Apr 2005 13:42:47 -0300

 

S„o Paulo Trading Tribe

Ed,


I want to start a tribe here in S„o Paulo, Brazil.

 

 

Welcome

 

S„o Paulo !

 

 

 

 

 

Clip: http://brazil.cbcregina.ca/

Wed, 13 Apr 2005

 

Price, not Time is of Essence in Trading



Hello Ed Seykota,

I have emailed you before and I am not sure you got my email and I donít know how to reach you, this time I am working on enhancing the idea of trend following by removing the time relationship between the trader and the price to achieve the PRICE ONLY trend following system.

I have read about using time based breakouts as an entry and exit in trend following and that great traders have used them along with money management with huge success. I think this success is because they use proper money management, trade in the direction of the trend, stopping losses, letting profits run and diversification; but their entry and exit methods and volatility measures are time based and in trading time does not exist which is the first rule in trend following "ONLY PRICE".

Trading cannot involve the use of "Time" as a measure because of its ever changing relationship with the price, which can lead to losing the first part of a trend and in reversals and minimizing profits in sideways and in breakouts that happen after a sideways market.

Time is not of an essence, Price is:

Price can only be measured by "Intervals = Price moving distance" For example: the price is constructed from deferent trends varying in length starting with as small as 2point trends to 300point trends and above in any of two directions.

Time based breakouts are wrong because time is relative and current price is the only guide to trade and price doesnít have history. Time is number humans use relatively to establish communication with one another so time is a relative although itís a number. For example we can say two people lived 40 years but one of them was an athlete, in this example the athleteís body had undertaken more changes due to continues Training (circumstances) so we can say his body lived longer from an absolute perspective that it changed more, so we can actually measure absolute age which is more precise than relative age.


Regards,

OK.

 

 

A Point and Figure Chart

 

 shows price on the Y-axis

 

and short-term trend

in alternating columns

along the X-axis.

 

Clip: http://www.dundas.com/Products/

Chart/Images/Point%20and%20Figure.jpg

 

Wed, 13 Apr 2005

 

Scholarship



I really want to attend the May Workshop.

 

Iím writing to ask if you have any scholarships or internships available.

Please consider my request and let me know if this would be acceptable.

 

I am focusing much of my daily attention towards financial abundance in my life. My late-blooming in this arena is regrettable but a current reality.

Financial Mastery is a pre-requisite for the Workshop.

 

You might take your feeling of not having enough money into the process.

 

 

Wed, 13 Apr 2005

 

Book Order



Dear Dr. Ed "Yoda"

I had a party at my house where after a few bottles of wine, I read parts from your website. Everyone seemed to identify with Fred and CM. None of my friends make their living in finance but they could all identify that they were traders. They understood that they were trading their time for something. Like Hakeem Olajuan, the Nigerian born 18 year NBA Allstar said, "Time is the biggest capital in life."

And then they asked about you. And after I told them about your track record, my friends, "Well since you follow him, do you have any tips from him that you can tell us."

"Lucky you," I replied," I don't just have one tip ... I have four tips, but I didn't make them up. They are straight from the man, the trading yoda, Ed Seykota. I am only like junior varsity Luke Skywalker here repeating the Jedi trading campfire stories. But, if you can just obey the first one you are ahead of 90% of the players. So listen closely young and old

1 Trade with the trend
2 Cut your losses
3 Ride your winner
4 Manage the risk


And they all looked at me as if I was Moses coming down with the ten commandments. Then they expected me to part the Red Sea. Maybe after a few more trading tribe sessions.

My favorite quote of yours:

"Do I like gold? Sure I do, it is shiny and bright."

And lastly, I am probably among the first 10 people to order your book.

 
I promise that I won't sell it on ebay for $1,000. But once people get the AHA moment about your methods, all bets are off.

Many thanks for your contributions.

Many things, including my website, may reveal an effervescent aspect with the assistance of a few bottles of wine.

 

My four "tips" are hardly original.  They likely date to the days of trading dinosaur bellies on the JFME (Jungle Fruit and Meat Exchange).

 

 

 

Wine Tipping Device

 

 

Clip: http://www.tabletools.com/

ttools/images/std_img/

wm0684495080.jpg

 

Mon, 11 Apr 2005

 

Running Out


Good Day,


Someday, our planet will be forced to find an alternative to crude oil as its primary energy source. What do you think humankind will use to replace it?

 


 


Sooner or Later,

you won't be able to refill this.

 

Clip: http://www.aetc.randolph.af.mil/

se2/torch/back/2002/0202/

images/Gas%20Can.jpg

As people run out of things:

 

bullet

They use less.

bullet

They pay a higher price.

bullet

They find alternatives.

bullet

They get it from others.

bullet

They wait for supply to appear.

 

 

 

Clip: http://www.resumedesign.com/

telecommute.gif

Mon, 11 Apr 2005

 

Discounting the Non-existing Future


Doesn't the market operate in future time; since, by its very nature it anticipates the future?

 

People invest or put up their money now with hopes of getting back more money in the future.

Someone, such as yourself, that has a keen understanding of himself and his fellow man, can properly discount an idea as it loses or gains credibility in the moment of now. I doubt if the average market participant is capable of doing the same.

Similarly, neither does the current discounting theory of markets in finance and economics hold the Responsibility Model in mind at heart.

 

The popular theory looks forward into the non-existing future. There is some kind of magic involved. The magic of the market place where all the participants, taken together, are endowed with an intelligence far superior to that of any particular individual.

It identifies, in hindsight, two events that happen around the same time. Then, strangely, working back-wards in time, it deems the first event the cause and the second event the effect.

 

For instance, this popular discount model would assume the 1929 market top and subsequent decline properly discounted Hitler's rise to power, World War II, the Depression, and the Holocaust.

The model presumes these events to be predetermined or fixed in future time ... affecting the present back-ward in time and are generally assumed to be linear. These assumption are never met in the real world. Its only something an academician can conjure up.

I brought forth my original question because I was unable to intuit how you were using this term - discount.

The market does not anticipate anything.  The market is a meeting place.

 

People anticipate things. They do so in the moment of now.

 

People talk about the past and the future although no one can produce evidence that either exists.

 

 

 

A Market is

a Meeting Place

 

where people can gather

in the moment of now

 

and register their ideas

about what things are worth, now.

 

Some people frame their thoughts

as notions about the past and future.

 

They do that, too,

 in the moment of now.

 

Clip: http://www.saintbrendan.net/

Meeting%20Place.jpg