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May 15 - 31, 2008

 

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Note: The intention of inclusion of charts in FAQ is to illustrate trading principles - The appearance of a chart does not imply any kind of indication or recommendation to buy, sell, hold or stay out of any positions.

 

 

Questions

(Quotes from Ed in Red)

Answers

Sat, 31 May 2008

 

The Whipsaw Song


hey Ed, I liked this one...very funny and optimistic. Is there a way to get it on mp3 with lyrics?

Thanks for using YouTube!

- The YouTube Team

 

Yes, you may download it, free, from this site.

Thu, 29 May 2008

 

Feelings of Entitlement


Ed,


In relation to you the question you posed to me:

Why do I feel that I need a mentor?

What does it feel like?

What part of the body is the feeling located in?

Who in my life has influenced this way of responding to situations?

I came to the realization that the need to have a mentor is in fact an emotional crutch, due to the fact that I currently, as well as in the past, have expected and desired things to come easily to me.

 

I have always harbored a sense of entitlement and a self-absorbed attitude. My sense of entitlement has been the catalyst for me to shift my burdens on other people and circumstances, therefore not take responsibility for the results.

 

I have noticed that it is my way of dealing with stressful circumstances in my life. I recognize that when this occurs, there is the feeling of anxiety and impatience in me. The anxiety stems from my belief that I want my current situation to be different than that of the present moment. The impatience is from the fact that I want these changes to happen now and I feel entitled to the things I want.

 

The anxiety in me is essentially fear; it feels like a negative type of adrenaline rush in the top of my stomach that flashes rapidly into the pit (bottom) of my stomach. The feeling feels like sharp pain and excitement at the same time. I noticed that there is also a lot of heat in my body when emotions like these occur. When feeling impatient I have flashes of uncomfortable heat from my chest, through my spine, and up to my head. This heat impedes my ability to think properly and constricts my brain.

My sense of entitlement is an underlying cause for my extremely competitive nature. I am so competitive that I am constantly comparing my self other people and have noticed myself becoming more insecure over the years.

 

This insecurity becomes anxious and nervous energy. In extreme circumstances the anxiety gets so bad it is almost immobilizing. These emotions again unfold themselves with flashes of heat all throughout my body, especially in my stomach and chest. Sometimes it travels throughout my body and I have a hot, prickly sensation throughout my arms and legs. Of course even though I always want to win, that is not always the case. When I am about to lose I react to the situation by becoming apathetic and acting like I never cared, again shifting the burden and making excuses. All this negative energy I found is manifested by heat and an excited pain.

I received another stroke of insight when I realized that the character flaws I have listed are derived mostly from my mother. She also has a sense of entitlement and believes she deserves things even though she has not earned them. I recently recalled a stressful situation my mother and I went through together. I could see that all these emotions and character flaws I have listed above manifested in her as well. I found my self reacting to her reaction of the situation, by becoming very annoyed with the way she was handling it. I now realize that she was mirroring me. I believe that my sense of entitlement also comes from being the first and oldest child and being spoiled in my youth. I have noticed my impatience and frustration to stressful situations comes from my father. My father does not have a sense of entitlement, but he reacts even to the most minor of stresses with overwhelming frustration and impatience.

I want to get past these issues and move forward with my life.

Thank You,

Thank you for sharing your process.

Thu, 29 May 2008

 

Trend Strength and Early Exit

 

If we use DROC to generate a flat list of strong instruments (trending up) and take a position thats meets our trading system buy signals, can the DROC also be used to unload a position or has it exceeded its purpose?

In other words, once we're in and our stops are in, do we let our system exit (210 day-low for example) or should we pro-actively monitor the DROC of the position and "replace" it with another instrument if the rate of change start falling across all time frames.

Does this go against the principles of trend trading?

FAQ does not ... tell people what they should do. See ground rules.

Thu, 29 May 2008

 

Wants Electronic Version


Subject: Mr. Seykota


How are you? I was wondering if you could make an electronic version of your book available for a smaller price. I have bought 3 copies to give to people and I am trying to economize on future purchases w/ out breaking copyright laws.

All the best.

I recently joined a tribe and am amazed at the power of TTP.

All the best.

Thank you very much.

You might consider taking your feelings about <paying up for things that work> to Tribe.

Thu, 29 May 2008

 

Video Game

Hi Ed !

My son is graduating high school next week.
 

OK.

 

 

 

Thu, 29 May 2008

 

Discipline


Hi Ed,


Regarding the discipline issue, I recall having problems with following through my most important decisions.

One thing that comes to mind is being really angry at my family (for neglecting me and doing things I didn’t like, i.e. belting my sister under the staircase when I was observing the scene from a cradle) at age, say, two or three and swearing to myself that I’ll never speak to them again until they improve.

I don’t remember saying anything, either to them or myself since I didn’t know any language yet, it was a feeling. Can you believe it? This goes a long way back.

Needless to say, it didn’t work out very well in the long run, I was forced to give in on a regular basis. That was simply a risky attitude to carry around the house. They knew I was ignoring them and it was something they didn’t understand (my father, as it turns out through my mother’s confessions, was absolutely convinced that I didn’t love him).

Lately, I talked to my sister about this issue and she says that she didn’t have a day not promising herself to never speak to them again.

So, I guess I avoided feeling good about myself since that meant feeling powerful enough to carry out my true commitments, which wasn’t a good idea back then.

This makes sense. For example, I would do my homework halfway, the moment I felt I was getting somewhere and I knew I would get a good grade I would quit with the feeling that 1) nobody would even notice or appreciate it 2) I would fuel my promise to ignore them for that – too risky or 1) even if they would notice and approve of a good job 2) I would feel good about myself and start “punishing” them for their other mistakes – too risky.

This concludes that feeling good and powerful and getting what I want was (is) too risky.

Now what? I’m fed up of analyzing the past. I want to feel like that three year old, who seemed to have a knack for right livelihood right then.

Thank you for sharing your process.

 

You might consider employing some new resources resource (other than being angry and withdrawing) in your dealings with others.

 

 

 

The Rocks Process

 

can help you

instinctively implement

new and effective resources

to deal with your situations.

 

 

Clip: http://www.eclipsetools.com/ProductPics/

Latest%20.jpegs/500-003.JPG

Wed, 28 May

 

Wants to Help the Marathon Runner


Ed,

I saw the posting on FAQ from the experienced runner who is offering to help me. I'd really appreciate it if you put us in contact. It is encouraging to see so much support.

OK - let me know how it works out.

Wed, 28 May 2008

 

Conflicts of Interest


Dear Ed,

In the past [my Firm's] experience with seminars / workshop's has been less than profitable. My supervisor, is trying to justify the cost of sending me to the event in Reno, July 18-20.

Quite frankly, in the very best case scenario you would transfer funds into [an  account with us] to service your business, as proposed.


You would find our improved clearing and execution arrangement very satisfactory. [My firm's legal department] would approve my business travel expense to Reno and allow me to spend lavishly on a terrific lunch for your seminar participants (as an unregistered entity this expenditure may present a problem for [out] attorney's), with your approval, of course.

Ed Seykota ... You are a Market Wizard.

Our people will try to bend over backwards to make this work, if possible. It would be a true privilege to attend The Trading Tribe event. Having the full support and cooperation of my firm's senior executives is one of the first hoops I must jump through for such an important occasion.

Looking forward to hearing back from you at your earliest convenience.

You might consider taking your feelings about <losing clients> to Tribe.

 

You might also consider bringing a few of your associates to the Workshop to help them sort out the meaning of right livelihood for your firm.

 

 

 

Buying Lavish Lunches for Clients

 

is generally less effective

 

than cultivating a reputation

for delivering quality service.

 

Clip: http://cruisefor2.com/images/day3_left.jpg

Wed, 28 May 2008

 

Medication


Ed,
 

Thanks for coming to the tribe meeting. I got a lot out of it.  Very powerful idea about the importance of clarifying an intention and the actions that support manifesting that intention.

 

Here is a quote of yours that I wrote down: "Anything that diverts you from taking that right action in support of your intention is MEDICATION!"

I have copied all of the emails from the attendees to the meeting on this email.
 

Thanks again,

Thank you for sharing your process.

Wed, 28 May 2008


Commitment to Trade

Just entered my first trade since 2005! Feeling good! Took 0.8% risk (based on a stop) on my total IRA account stake based on several different and confirming analyses on market [Website]. Entered ten minutes before the close; the stock rallied into the close, covering my commission, for a net profit of $3.05. That feels good too, but the best feeling is [trading again].

On Monday, sure as s---, when I thought about making a trade, all my addictions came bubbling up out of the primordial mud. I engineered a major drama with my wife yesterday - worked very well as a distraction. I engaged in all sorts of other distracting and addictive activities as well, bringing myself down, and not getting a trade done. Started to do so today as well - still dealing with being in the dog house with the wife, and the universe engineered a major database problem on our site today.

But, I am pleased to report that with the virtual tribe in my head encouraging me and supporting me, I saw the close looming and I resolved to forge ahead towards my goal, addictions be damned.

Thank you all for your support of my commitment.

Thank you for sharing your process.

 

 

 

Being in the Dog House

 

can help feelings about

 

being in the brokerage house.

 

Clip: http://www.doghouse-info.com/images/

DogHouse.jpg

Wed, 28 May 2008

 

On Track



I am doing the monthly check in on my Marathon plan; currently I am on track.

My intermediary goals for end of May were to run 1.5 miles comfortably (comfortably means that you can still talk) and to lose 5 pounds. I'm slightly ahead on both goals. A linear regression of my weight versus date suggests that I'm losing a bit more than 1/5 of a pound per day.

Regarding dramas and addictions. I have noticed an 'addiction' where I justify having some caloric treat because I went running. Apparently that addiction wasn't enough to derail my process, so then I had a drama were my wife made brownies or some other dessert for several days in a row.

 

This is a especially useful tactic to derail me because we have issues cooking as well. To not eat the food is a bad thing. This tactic wasn't successful either, I just kept it in moderation.

 

The last tactic was to insist on going to a restaurant specializing in dessert, her ordering the dessert to go, and then leaving it in the refrigerator. I'm quite curious with what we will come up with next.

 

I suspect we will have some fights / tension. Looks like I have the topic for tonight's hot seat. I would like a tactic to help her cope with her emotions; I can see them very clearly (just my own are cloudy). I just don't know of a good way to do this.

I appreciate everyone's support,


 

Thank you for sharing your process.

 

You and your wife might consider taking your feelings about <food> to Tribe.

 

 

 

 

 

Smart Cookies

 

keep things in balance.

 

 

Clip: http://www.nodm.com/SponsorFiles/

marathon_cookie.jpg

Wed, 28 May 2008

 

Bliss


Ed,


You say that a bliss of 1.0 is pretty good, can you give me the link to the calculation of the bliss or if you don't have it posted would you please define it so all (I) can fully understand your comments.

PS that YouTube clip is hilarious.

Bliss is a generic class of performance computations that acknowledge rate of return and drawdown;  for specific implementations, see Sharpe Ratio, Sterling Ration and MAR.

Tue, 27 May 2008

 

Finding  the Fun


Mr. Seykota:

I hope you are well. I look forward to the the Reno Workshop in July as well.

I am writing today to ask you the opportunity to consider me to become new member for the the Incline Village Trading Tribe and attend on regular basis. Following are my qualifications:

I have been involved and practiced TTP for the past 3 years. I have done several Rock Processes with our local tribe as well. I feel I have been receiving and sending sincerely and consistently. I have also shared our progresses and experiences on to the FAQ on multiple occasion in the past. I have also attended my first Workshop in Oct. 07. With your generosity I have visited the Incline Village Meeting on 2 occasions.

My intention on the tribe directory are as follows:

Intention:
Experience & further develop the art and science of TTP
Apply TTP in their own lives
Improvement in Trading Result
Materialize their snapshots
Make periodic reports about their progress to FAQ
Apply Rock Process to willing members
Focus on Willingness and Commitment

For the past three years I have been working mainly on my big personal deep rooted issues and I feel I made significant progress up to this point. Something I said to myself 4 years ago that no matter what happens I am going to fix this. So I feel I great about this issue.

 

As I mentioned on the last email, recently I have found Fun in my life.

 

I feel Fun and Body Snapshot is trending its way to Materialization for the first time in my life. I am very grateful for that. I am communicating with my parents on regular basis in Harmony as well (Thanks to multiple Rock Process!) However I have problem with my relationships and livelihood. There is a pattern and many layers of Judgment and Rocks. I need help.

The truth is I really want to make it happen on my right livelihood and relationship. I am fully aware that you are extremely busy and have many people wanting and needing to work with you but I am asking with all my heart and soul to consider me as a new member for the Incline Village tribe. As you can see from my intention above I want to experience and further develop the art and science of TTP. (My experience is that I learn the most from participating in Incline Village)

Other intentions are learn C#, start a relationships and start a family, start managing money on performance base and not commission base, create a first original trading system using C#, finish TSP exercises, remove judgment about Commodities and Expiration, start trading commodities and futures, learn to be right place at the right time rather than later stage at later time.

I feel my willingness to send and receive and respect others will contribute to the tribe as well. I did not want to sound too serious in this letter (humor helps) but I do want to attend, learn and work on issues with the best tribe members and the chief who I most admire most and respect.

Once again I ask you for the opportunity to attend Incline Village Tribe as regular member. I am available and committed to attend earliest available meetings. With the understanding of your busy schedule I thank you for your attention on this matter. I wait for your reply.

Wholeheartedly,

Thank you for sharing your process.

 

You are welcome at the IV Tribe.

 

 

 

Fun and Right-Livelihood

 

are playmates

 

 

Clip: http://www.studentambassadors.org/

optimized_images/ptp_fun1_506.jpg

Wed, 28 May 2008

 

On The Road


Dear Mr. Seykota,

Thank you for your reply (it was a bit unexpected).
Unfortunately, it will be difficult for me to go to the workshop in Reno on July 18th. I will be in [Country] setting up the show for our opening night on July 22nd. And I'm sure that it is understandable that I cannot let my father down. Are there more workshop in 2008? As for your private consulting, can you please let me know how it works? That could be great.

Thank you, once again for your time.



-----


(From Ed)

I normally address inquiries on my FAQ column.
If you want personal contact, you might consider attending a Workshop and / or retaining me for private consulting.


-----


Dear Mr. Seykota,


I am a 28 years old guy who would very much like to have some guidance from an experienced and successful trader. I thought you would be the appropriate person to contact due to the fact that you have in the past coached other traders and help many with your Trading Tribe. Straight to the point isn’t it?

 

I know you must get tons of e-mail like mine, but I needed to do it. If you don’t take chances, you will not get any reward. I am sorry if my written English is not the best; my first language is French (French Canadian). Most of this e-mail is about my life, but don't worry, it will get somewhere at the end.

I just thought that it could help to understand where I come from to get to where I want to go.


I was born and raised in Montreal to young loving parents both working in the show business (my father a producer and my mother an artist). They put me in private school to give me an excellent education where I became better know for my sporting abilities than my interest in my classes. It is during that time that I became very much interested in the stock market and in investments.


Freshly out of high school at 17 years old, I was able to find a summer job on the floor of the [City] Stock Exchange. I was hired as a clerk for a firm operating mostly in the 10 Years Government Bond and in the 3 Months Bankers Acceptance futures. My summer job became a full time job and I quickly became well known for my hard work among the floor.

 

In my first year only, I went from clerk to pit trader. I was then hired by 2 traders who wanted me to teach me how develop and to trade trading system for them. They already had one trend following system based on point and figure charting. That was when I first got familiar with trend trading system.
Unfortunately, the [City] Exchange turned electronic and most traders including me lost their job.

 

I than starting to trade at home and developed a simple trading system which I use to trade stocks during the internet bubble. The problem is that my account wasn’t big enough to short stocks ([Brokerage House] at the time asked for $100,000 to short). I made money until the uptrend was over and did not re-enter the market during the downtrend. My trading system did not create any signal any more.

 

Being frustrated by not being able to short the market, I found a Day-Trading firm that was hiring traders. We basically traded the firm’s money with small in and out all day trading unlimited amount of shares and keeping no position overnight. The firm gave us a 1 to 3 month unpaid training and we were only hired if we could generate a minimum amount of profit.

 

Only about 12% of the trainee became traders. We were paid on commission only if we would once again generate a minimum of profits. I did that job for about 2 years. I left because I knew it wouldn’t bring me where I wanted to get. This style of trading at the end made me feel more like I was playing a Nintendo game than actually trading.

 

At this point I was 23 years old and looking for a job where I could really learn more about trading and trading system. Unpredictable as it is, life decided otherwise for me. My father was starting a new production and invited me to join in the company. His show was going to tour all over the world and I decided that it was time for me to take a break from finance and travel.

 

In the last five years, we have traveled across the USA, Canada and Europe and the show has sold more than 1.5 million tickets. I work as the Merchandising director for this show. I have traveled, met people, enjoyed life but my hart always was with trading.


My journey with the show is getting to its end and I am now thinking of going home and this is where I need guidance. I want to develop a trading system, raise capital and start my fund. I now know that I was born to do this and want to do this. The problem is that the step from wanting to actually make it successfully is quite large and I do not know where to begin. I have always believed that the best way to learn is to learn from your own or someone else experience. I do not know anyone who could help me with such a task. Books are a great help, but books cannot replace a teacher. I do not need anyone to feed me fish, but I need someone to teach me to fish.


It would greatly be appreciated if I could get in contact with you or with someone that could help me to get started with the questions I have. I know I have much of what it takes to trade with a trading system. I am stable (we’ve just celebrated 10 years with my high school sweet heart), disciplined - (lost 70 pounds over the last year), responsible -(supervise a team of 35 employees and my department brings millions to the company), hard worker - (life on tour is 6 to 7 days a week all year round with 10-12 hour days).
 

It would be a dream come true (cheesy, but true) to be able to discuss further about trading with you.


Best regards, and thank you for your time.

See Ground rules for terms for private consulting.

Tue, 27 May 2008

 

Missing  Rocks

I submitted a write-up of my Dec 2006 Rocks experience to you in MS Word doc format, immediately following that amazing experience. (I believe the exact date we did that Rocks process is Dec 18, 2006). At one point it was posted under the Rocks link of the TT site, but it is no longer there.

I lost that document in a computer crash. If you have it handy, I will appreciate it greatly if you will email it to me.

In exchange for your time ... breakfast, lunch, or dinner is on me, next time we are in the same
city at the same time, in the same non-existent future.

Many thanks,

Ed's ultimate intention for The Trading Tribe and for TTP is for people to experience it, and for it to disappear and become just another passing AHA. See Ground Rules.

 

 

A Passing AHA

 

Clip: http://phantomisinyourmind.blogspot.com/

2008/03/magical-kittens-pt2.html

Tue, 27 May 2008

 

Dream

 

Hi Ed,


Last night, I had a dream with a girl and her sister in their house. The dream goes a long way back, when I was still a teenager.

The girl says “You keep coming here, although you were never even invited to have lunch with us before.”

 

Back then I would sit still and observe.

In the dream, I stand up and leave the house.

I wake up and I check your archive posts again and this time I get the message.

Thank you for sharing your process.

 

 

 

Leaving Can Be Painful

 

to the extent you resist it.

 

 

Clip: http://www.mediatinker.com/blog/images/

momLeaving.jpg

Mon, 26 May 2008

Buying on Dips

see: previous

Dear Ed,

I am eager to see your response to my attempt at looking further in to systems.

After a few weeks you post it.

I see it is succinct as ever.

Thanks for the response, I feel some FAQ contributors see short answers that don’t suit them as glib or curt. I appreciate the thought that goes in to concise imparting of trading wisdom.

Friday the 16th of May I ‘mediate’ which involves lying in my dark bedroom closing my eyes and relaxing as a week’s worth of thoughts flash in front of my eyes and my mind moves toward inner thoughts. It feels like watching a TV that isn’t tuned in.

I find myself smiling and even laughing and nearly physically shedding tears of sadness too as trading thoughts skip quickly to imagined conversations with close friends and family. I feel they are conversations I ‘want’ to have or ‘need’ to have.

Three words come to me over and over; Beauty, Truth and Strength.

For that time those three words seem to encapsulate all I need to know to be happy. For a moment trading, in theory at least, seems easy as does life.

I want to learn to appreciate the natural beauty in all things, I want to be honest with everyone as to how I feel and what I think with no intended manipulation of their feelings or playing ‘games’. Perhaps the strength I need is to walk my own path which from the outside looks very different from the ‘norm’. Perhaps also it’s the strength I need to buy at new highs and the same strength to be honest in all my dealings in work and in relationships.

I go on holiday in a few weeks and can’t wait to dust off my Trading Tribe book for another read.

Thanks for your ongoing support.

Thank you for sharing your process.

 

 

 

In the Game of Catching Falling Knives

 

the knives

 

generally outnumber 

 

the fingers.

 

 

 

Clip: http://kirk.blogs.com/photos/

uncategorized/fallingknife.gif

Mon, 26 May 2008

 

Dallas Tribe


Thanks for reply Ed. I'm trying to see if I can rationalize my budget for the July Workshop.

 

The book is superb and I know I need a tribe and would like to assist others in same.

 

Cheers,

OK.

Sun, 25 May 2008

 

Mathematicians Compute a Way

to Escape from the Moment of Now


Ed,

 

What do you think of this?

 

http://www.jpost.com/servlet/Satellite?pagename=JPost%2FJPArticle%2FShowFull&cid=1186066367757

Math-turbation.

 

 

 

 

Some Things Make More Sense in Theory

 

than they do

in practice.

 

Sat, 24 May 2008


Warren Buffett

 

Ed,


Buffett also renewed his criticism of derivatives trading. "It's not right that hundreds of thousands of jobs are being eliminated, that entire industrial sectors in the real economy are being wiped out by financial bets even though the sectors are actually in good health." Buffett complained about the lack of effective controls. "That's the problem," he said. "You can't steer it, you can't regulate it anymore. You can't get the genie back in the bottle."

Ed, do you think that derivates trading, such as technical trading, creates a kind of "virtual economic reality" as opposed to the actual status quo of economy?
 

Source: http://news.yahoo.com/s/nm/20080524/

bs_nm/buffett_us_recession_dc

Derivatives trading, like other activities, are all part of the "actual" economic system.

 

You might consider taking your feelings about <riding with the genie> to Tribe.

 

 

Following the Genie

 

might be one way

to identify the trend.

 

 

Clip: http://www.thegreenhead.com/

imgs/genie-bottle-stopper-2.jpg

Sun, 25 May 2008


Running the Marathon - Update

see previous


Dear Mr. Seykota

 

The correspondent writes about his goal of running a marathon. I support him and offer all help I can provide. I am a runner for 31 years now. My personal best is 2 hours, 19 minutes. I have been counseling athletes for over 20 years. This means - well, that I am old. You know my background. If he is interested, you can give him my email.

Cordially,

Thank you for your offer.  If the runner responds to this posting, I can forward your email address to him.

Fri, 23 May 2008

 

To the Point


Ed,


1 - Can Trading be taught?

2 - Can I learn?

3 - How can I learn?
 

You might consider taking your feelings about <wanting to know> to Tribe.

 

 

 

Seeking

 

sometimes blocks attaining.

 

 

Clip: http://byakuganlove.deviantart.com/art/

100TC-5-Seeking-Solace-Shika-67417719

Thu, 22 May 2008


In Stitches Waiting for Models


Ed,


I anticipate reading your new models that simulate emotional interactions. Thanks for checking in on me. I am feeling better today and get my stitches out tomorrow.


Take care,

So far, some of the runs seem fairly realistic.

 

 

Emotions Interacting in a Simulation Model

 

Thu, 22 May 2008


Charts


Ed,


Who selects charts for placement on the TT site? As I write this I am hearing an answer along the lines of, "Smart people that see a lot of charts."

 

OK, so, I am new to trading and am studying daily (this is better than cocaine: quickens my heart rate, stimulates my brain, but instead of dissipating my life force I get to compound it).

 

I use the TT Charts like bread crumbs as I bump along improving my science. Any hints as to common elements of selected charts (other than, "They all represent a measured potential for profit or loss"")?

Regards,

The chart page lists major futures markets plus some Coal stocks plus three sets of "strong" stocks that select on short, medium and long-term trends.

 

A computer selects and posts the charts to the chart page.

Thu, 22 May 2008

 

Fredian Cycle


Ed,


The Fredian cycle brings the following to mind:
the "Action - Situation" stations represent Resolution of Issue (sloughing off of utilized / spent non-necessary elements, blending of nutritional elements with self); coordination with the Fredian flow - My Wheel is Balanced! the "Medication" station represents Retention of excess elements; dis-coordination / imbalance with Fred and the flourishing of the Charlie Brown syndrome ("Why is everybody always picking on me?").

I wonder how you might describe the positive intention of Lucy.

 

 

 

Intentions = Results

 

for all the participants.

 

 

Clip: http://ohpepper.blogspot.com/

Wed, 21 May 2008
 

Theatre and Trading

 
Dear Mr. Seykota,

I am a 28 years old guy who would very much like to have some guidance from an experienced and successful trader.

 

I thought you would be the appropriate person to contact due to the fact that you have in the past coached other traders and help many with your Trading Tribe. Straight to the point isn’t it?

 

I know you must get tons of e-mail like mine, but I needed to do it. If you don’t take chances, you will not get any reward. I am sorry if my written English is not the best; my first language is French (French Canadian). Most of this e-mail is about my life - but don't worry, it will get somewhere at the end. I just thought that it could help to understand where I come from to get to where I want to go.

I was born and raised in [City] to young loving parents both working in the show business (my father a producer and my mother an artist). They put me in private school to give me an excellent education where I became better known for my sporting abilities than my interest in my classes. It is during that time that I became very much interested in the stock market and in investments.

Freshly out of high school at 17 years old, I was able to find a summer job on the floor of the [Exchange]. I was hired as a clerk for a firm operating mostly in the 10 Years Government Bond and in the 3 Months Bankers Acceptance futures. My summer job became a full time job and I quickly became well known for my hard work among the floor.

 

In my first year only, I went from clerk to pit trader. I was then hired by 2 traders who wanted to teach me how develop and to trade trading system for them. They already had one trend following system based on point and figure charting. That was when I first got familiar with trend trading system.

Unfortunately, the [Exchange] turned electronic and most traders including me lost their job. I than starting to trade at home and developed a simple trading system which I use to trade stocks during the internet bubble. The problem is that my account wasn’t big enough to short stocks ([Broker] at the time asked for $100,000 to short). I made money until the uptrend was over and did not re-enter the market during the downtrend. My trading system did not create any signal any more.

Being frustrated by not being able to short the market, I found a Day-Trading firm that was hiring traders. We basically traded the firm’s money with small in and out all day trading unlimited amount of shares and keeping no position overnight.

 

The firm gave us a 1 to 3 month unpaid training and we were only hired if we could generate a minimum amount of profit. Only about 12% of the trainee became traders. We were paid on commission only if we would once again generate a minimum of profits. I did that job for about 2 years. I left because I knew it wouldn’t bring me where I wanted to get. This style of trading at the end made me feel more like I was playing a Nintendo game than actually trading. At this point I was 23 years old and looking for a job where I could really learn more about trading and trading system.

Unpredictable as it is, life decided otherwise for me. My father was starting a new production and invited me to join in the company. His show was going to tour all over the world and I decided that it was time for me to take a break from finance and travel. In the last five years, we have traveled across the USA, Canada and Europe and the show has sold more than 1.5 million tickets. I work as the Merchandising director for this show. I have traveled, met people, enjoyed life but my heart always was with trading.

My journey with the show is getting to its end and I am now thinking of going home and this is where I need guidance. I want to develop a trading system, raise capital and start my fund.

 

I now know that I was born to do this and want to do this. The problem is that the step from wanting to actually make it successfully is quite large and I do not know where to begin. I have always believed that the best way to learn is to learn from your own or someone else experience. I do not know anyone who could help me with such a task. Books are a great help, but books cannot replace a teacher. I do not need anyone to feed me fish, but I need someone to teach me to fish.

It would greatly be appreciated if I could get in contact with you or with someone that could help me to get started with the questions I have. I know I have much of what it takes to trade with a trading system. I am stable (we’ve just celebrated 10 years with my high school sweet heart), disciplined (lost 70 pounds over the last year), responsible (supervise a team of 35 employees and my department brings millions to the company), hard worker (life on tour is 6 to 7 days a week all year round with 10-12 hour days).

It would be a dream come true (cheesy, but true) to be able to discuss further about trading with you.

Best regards, and thank you for your time,

You might consider writing a script about how you see your trading career developing.

 

Be sure to mention all the supporting actors and what roles they play in your success.

 

And be sure to describe your financial and emotional condition at the end of each act.

 

 

 

Like Trading, Theater

 

can be a career

 

or a way

 

to excite your emotions.

 

 

Clip: http://www.deaf.ie/IDSservices/

Entertainment.htm

 

 

Wed, 21 May 2008

 

Pushing Buttons for Profit


Dear Sir,

I appreciate your site and what it stands for. Not knowing much (about anything), I immediately agree with your style of teaching.

 

Possibly you think people must teach themselves or maybe you agree that your lifelong knowledge cannot be transmitted - both because of logistics and the basic rule that you cannot tell anybody anything. You can only suggest what they must tell themselves.

It is possible that I should have covered all material presented on your site before saying or asking anything but the site has already brought up a question and observation.

The question:

Pushing buttons for profit - does it ever leave you questioning yourself?

Observation:

I felt that great experiences in my ~29 years had brought me to certain conclusions on what I wanted out of life. Radical changes in my abilities to live carefree and active (as I did) focused me on getting life right (well, approximately right).

 

Trading has, in a brief amount of time, inverted my thoughts in some ways and yet I feel more in touch with myself, my TRUE desires, and with the world (through the markets and reality). Comments appreciated from fellow man who just happens to be a legend.

PS - I came across the Whipsaw song and more than the Jack Schwager interview, it lead me to want to discuss life and market matters with you (I know, I'm in quite a queue.)

Thank you for sharing your process.

 

Programmers, pianists and peyote dealers all push buttons for profit.

 

 

 

If You Like to Push Buttons

 

be sure

you have one

to push.

 

Clip: http://www.erosblog.com/2007/06/28/

ohnoes-playboy-ate-her-belly-button/

Tue, 20 May 2008

 

TT  Essentials Card


Ed,

Thank you twice over for the TT Essentials card.

You are welcome. 

You are welcome.

Tue, 20 May 2008

 

No Final Decision Yet


Dear Ed,

I noted the change in location for your workshop from Chicago to Reno in July at the Peppermill Hotel on your website. I am considering attending the event, but have not yet made a final decision.

Best regards,

I wonder what's standing between you and making a "final decision."

 

You might consider taking your feelings about <commitment> to Tribe.

Tue, 20 May 2008

 

Kurzweil on Technology - Movie


Hi Ed,

Cleaning up around the house, I chanced to listen to this and thought of you.

 

All the best,


Clip: http://www.ted.com/talks/view/id/38

Hmmm... Ray seems to see exponential growth in technological innovation, not in government and inflation.

 

 

 

"Futurist" Ray Kurzweil

 

 

 

Exponential

 

 

 

 

S-Curve

 

 

 

Clips:

http://image.com.com/gamespot/images/

2008/051/kurzweil072_screen.jpg

 

http://ghs.gresham.k12.or.us/science/

ps/sci/ibbio/ecology/notes/popnotes.htm

Mon, 19 May 2008


Standing Naked


So on the way home from Tribe, I did some thinking and the answer to the question Ed asked (if I am going to trade is YES).

 

I have gone through periods of learning followed by periods of frustration where I have felt I was not making any progress at all. I will put it aside for some time and later something always comes into my life to get me started back on the path.

 

I find learning about the markets and trading interesting and challenging but most of all the process has given me the motivation that has moved me forward in my personal development.

 

There are areas in my life I am satisfied with and other areas I feel I am operating at a very small level. When I start trying to take steps to make money in the markets what seems to always be there is the next step I need to deal with in my personal and emotional life.

 

Making the commitment to trade and telling others brings up some anxiety about what else there is about myself I have to work on, how much farther I have to go and some discomfort about uncovering hidden agendas or motivations I have that I have been hiding from myself.

 

This feels like I am standing naked in front of people which I guess is indication of how much this wants to stay hidden. I hope y'all have a great week!


See you at the next meeting.

Thank you for sharing your process.

 

You might consider taking your feelings about <standing naked> to Tribe.

 

 

 

When Everyone is Naked

 

wearing clothing

can be  embarrassing.

 

 

Clip: http://www.dailymail.co.uk/news/

article-476317/Hundreds-naked-volunteers-

brave-cold-glacier-photo.html

Sat, 17 May 2008

 

Too Easy


Dear Mr. Seykota,

I watched my meager savings get reduced by 70% by these can't miss mutual funds from 1998-2002. I was really upset and thought that I could do better

.

I knew that I couldn't do worse. During my "far from traditional educational path" I had received an undergraduate economics degree from the [University] prior to that debacle and thought "How difficult can this be? It all boils down to Supply and Demand."

 

So, I began to experiment and then would get sidetracked with trying to find stocks that were "undervalued" or seemed poised to rise through "fundamental analysis."

 

However, my investment in time did not reward the bottom line and then I knew "it all boils down to Supply and Demand" reflected in Price.

 

Currently, I am a second year resident in Psychiatry so I definitely do not have a lot of time but, I spent a lot of time just contemplating a system that made sense to me and fit into my understanding of the world.

 

Using chart trends of stocks on Yahoo and using a simple stock screener that I developed on MSN Money, I have made money and it is embarrassing easy - 28% annually after fees during the past 2.5 years.

 

A number that probably would have been higher if I didn't meddle so much with overtrading; a problem that is now fixed - by just being aware of it.

Now, I feel so relaxed and just appreciate being a part of the ebbs and flows of the market. There is no pressure that "I have to be right" the losers are sold and the winners just run. There is a pleasurable calmness to it.

My question is: Am I naive? It just seems so easy right now. Thank you for your time.

Trend Trading is pretty simple if you are willing to follow the rules.

 

The difficulty generally surrounds some or another rule you are unwilling to follow.

 

See Breaking Rules, below.

Sat, 17 May 2008


Stubborn


Hi,

I first came across Mr. Ed Seykota's name in the Market Wizards book by Jack Schwager. While his comments in the book struck a chord i just left it at that.

 

I was new to trading and i was still stubborn arrogant and more dangerously smug in the belief that i knew where the market was going. Later on i got to know more about Mr. Ed thru the website and also heard about him more thru friends who read about him.

Needless to say i have suffered huge losses since then and being stubborn by nature have still not given up.

Also, i have definitely been fighting my feelings. What i noticed is that the more i resolve to do something the more i end up doing the exact opposite thing, and this is not just limited to trading. I was also of the belief that i could not allow my personality / personal habits or tendencies to affect my trading, but the bottom line is, they do. It would probably be a rare inherently gifted trader who could separate the two (in my opinion).

At this point, my trading life is in a shambles and the only saving grace is i have not let my losses affect my personal financial situation (but my losses are still huge and unacceptable). Also, nothing else is working.

 

The best thing i can say about my trading system (it is not a clearly defined one) is i don't stick to it. My main problem, i have noticed is that i get complacent as the instrument i trade is in a trend. In this situation no matter what i do, i end up making money. However as the instrument stalls or becomes trendless for the short term, i get whipsawed and end up losing all i made and more, and THEN the instrument starts delivering again, without me participating!

Given the amount of negativity within me and in my outlook i am wondering if i would even be allowed into a local trading tribe meeting for the risk of damage i might cause others.

 

So, my simple question is, would i still be allowed into a local trading tribe meeting? I am in the process of getting the book and i would first go thru the book so it will be a while before i am ready for a meeting, unless the book is not a prerequisite.

All in all, thanks for having this whole support system out there that is not judgmental and that seems to me to have a chance to work.

Thanks,

Thank you for sharing you process.

 

You might consider taking your feelings about <your feelings being toxic to others> to Tribe.

 

Then again, you might prefer to experience <stubbornness> about doing the above.

 

 

 

Trend Trading Systems

 

are stubborn

while the markets trend

 

and otherwise

they are compliant.

 

 

Clip: http://www.lazy-lranch.com/stubborn.gif

Sat, 17 May 2008

 

Repressing Emotions Can Harm Health

 
Hey Ed,

Check this out.

Scientist Magazine:

Smiling Can Hurt Your Health

Germany, May 16 (UPI) -- A German scientist has proved that people forced to smile and take on-the-job insults suffer more and longer-lasting stress that may harm their health.

Dieter Zapf of the Johann Wolfgang Goethe University in Frankfurt studied 4,000 volunteers working in a fake call center. Half were allowed to respond in kind to abuse on the other end of the line while the other half had to suck it up, The Telegraph reports.

He found that those able to answer back had a brief increase in heart rate. Those who could not had stress symptoms that lasted much longer.

"Every time a person is forced to repress his true feelings there are negative consequences," Zapf said. "We are all able to rein in our emotions but it becomes difficult to do this over a protracted period."

In an interview with the German healthcare magazine Apotheken Umschau, Zapf suggested that people who must keep smiling on the job should get regular breaks to let it out.

 

Source: http://www.upi.com/NewsTrack/Top_News/

2008/05/16/scientist_smiling_can_hurt_

your_health/2772/

The TTP forms process helps people get feelings out and helps them get to the zero point.

Fri, 16 May 2008

 

Nice Drawers

 

Ed,

 

Here is some fractal furniture.

 

 

Clips: http://www.tmiyakawadesign.com/

fractal-2.html

OK.

Sat, 17 May 2008

 

Whipsaw Song


Hi Ed,

i am just listening zu your whipsaw Song. It's really cool. Thanks. You still got your good old voice.

Take care

Thank you for your support.

Fri, 16 May 2008

 

Overcoming Bad Habits

 

Ed,

Here is my method for breaking bad habits or a self-defeating addiction.

1. admit there is a problem.
2. stop playing the blame-game.
3. ask for help.

4. stop medicating - to heal it, feel it.

Thank  you for sharing your process. 

 

I wonder how your method is working for you and if you can provide an example.

 

 

 

At The Heart of Every Bad Habit

 

lies a judgment

that it is bad.

 

 

Clip: http://uwadmnweb.uwyo.edu/bettergrades/

tips/images/good%20habits%20bad%20habits.jpg

Fri, 16 May 2008

 

TTP Workshop July 18-20, 2008

Hi Ed,

I realize that I omitted an answer to your original set of follow-up questions in my previous response.

2. Define the country you intend to visit for two weeks, and the dates for that visitation.

My use of country is incorrect. I mean to say a location outside of the 48 contiguous US states.

My wife and I will travel to Hawaii from 6/5 to 6/19 - in 2009.

Thank you for sharing your process.

Fri, 16 May 2008

 

Whipsaw Song - Congrats.


Hi Easy Ed,

Just got a chance to sit and listen to the good BG pickin' and grinnin', and I must say - the words simply say it All. Any trader that has the discipline (or can develop it) to "always follow" your 6 simple /but not easy rules will be amazed at their annual results, just by trading the basic group of commodity futures. Congratulations - Great work Ed.

Your un-selfish service to serious traders, is making a big difference.

Thank you for your support.

Thu, 15 May 2008

 

Breaking Rules

 

Dear Ed,

Thank you for the website response to my email. I though long and hard about breaking rules and I concluded that in truth, I was designed to break rules.

 

My heroes are the people like Oskar Schindler  www.oskarschindler.com and all the other people who broke rules, to do the right thing.

 

I know in my heart that in times of trouble, when all is collapsing, I will stay true to my fundamental morals.

 

I would not hesitate to be another Schindler. It is true, I don't operate well when I am in comfort and sometimes struggle to deal with people and trivial things. I have a much bigger picture in my head. I guess I will always be an outsider - and I am happy to be that.

You might take your feelings about <the positive intentions of rules> to Tribe

 

 

 

Your Ability to Follow Rules

 

has a lot to do

with how you view

authority and support.

 

 

Clip: http://users.ox.ac.uk/~peter/workhouse/

Aylesbury/AylesburyRules.gif