The Trading Tribe
(c) Ed Seykota 2003-2011 - Write for permission to reprint.
Ed Seykota's FAQ
Readers Say Ed Says

September 21, 2011

Trading Full Time

Dear Mr. Seykota and Tribe.

Leaving day job to trade full time. Have done this before without trend following and you know the results. In Austin and using the "essentials" and the results are much better. (up 15% in 90 days).

Please advise and thank you.

Thank you for sharing your process.

September 21, 2011

Experiencing the Martyr

Dear Ed,

I follow your suggestion and send the list of events that I can generate to definitely feel like a martyr and get a lot of commiseration from people:

1. I quit my current job to start working freelance. My health worsens further (more insomnia, more anxiety). I am not able to work and have to live from the social insurance.

2. I find a new apartment. The sound of water flowing through the pipes is so loud that I cannot sleep and cannot concentrate.

3. I have a relationship with a girl who stalks me and starts harassing my children with phone calls or letters.

4. I lose my voice and a finger and cannot sing / play the guitar anymore. I visit shows of my fellows musicians and they express to me their condolences.

5. I lose all my savings at the stock market. I end in the poor house. My wife, who is wealthy, supports my children. They don´t want to see me. I feel ashamed and guilty.

6. I lose my mobility due to a stroke or neurological disease. I am wheelchair-ridden and can barely talk.

7. I develop an erectile dysfunction and halitosis.

8. I have a brain inflammation and lose my sense of smell and taste.

9. I get floaters ( and, while I can see, I have trouble reading and driving.

10. I am an angry, sick and poor man. I am alone as a mad dog.

I think that these events cover all scenarios: health, relationships, money, job, security, joy, pleasure, partnership, the ability to support and take care of the loved ones.

Best regards,

Thank you for sharing your process.

I notice you can still type and send emails.


September 22, 2011

Hope this mail finds you well.

Trust everything is OK at your end. You have stopped updating the FAQ page and hence this question.

How is your world tour coming along?


I have the World Tour on hold for now.

September 26, 2011

IBD and All In


Investor's Business Daily's charting product Marketsmith offers, on its site, Chart Arcade. Where you buy and sell stocks or even sell short stocks. You are given only the price and volume action, and a couple of moving averages.

It keeps track of how much you make per trade and overall performance. You cannot set stops. And final price based on close of the day. You trade one stock at a time.

The one particular feature I came to appreciate is the "heat" level it employs. You are "all in" with each trade you make. So if a stock gaps down 40% you have an immediate 40% drawdown! I went through several drawdowns of 40-50%. I stuck with it and on to the next chart and the next big winner, away you go. A couple of winners back-to-back make a huge increase in profits. The compounding factor really plays out.

In real life could I go "all in"? Nope. I do see how increasing the heat factor to your system that offers you an edge leads to some fantastic profit gains.

After learning to trade only the clear trends and figuring out a few other quirks of the game, I ended up in the Hall of Fame and my screen name was retired.

Now, I will transfer some of my observations to real life.

Thank you for sharing your process.



September 26, 2011



You might enjoy this, by Hugh Hendry:

Thank you for the link.

September 29, 2011

100 Best Investors

Dear Ed,

Sorry to disturb you on this e-mail but I have tried the other one without success. I am writing a book called "the 100 best investors in the world".

After your 65% annual performance in 16 years you are on the list.

I have asked all investors to share the three most important insights from working in the market. Some investors have written three sentences and some a bit more.

The book is a gift to the next generation investors and all surplus will go to charity for the environment. Hopefully it will be some goodwill to your company as well. The book will be distributed in all mayor countries.

In the attached letter you hopefully will find all needed information. I have also attached answers from a couple of investors to give some inspiration. If you are loaded with work I have compile a couple of public quotes. I hope you replace them with better ones but in worst case they work fine in the book.

Best Regards,

How about this one: "Good luck with your venture."



September 30, 2011

Mysterious Gap

Hi, Fellow Austin Workshop participants & greetings from The Netherlands !

Does anyone know if Ed is in good shape: it's an unusually long gap in the FAQ updates? I find myself wondering if he has his John Galt moment and retires to his ranch, complete with shielding devices of his own design...

Hope you're all well and enjoying this wonderful & often mysterious life.

Hmmm ... let me know if you hear anything.