learning to dance - my journey

8/10/2019 Learning to Dance - My Journey

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Learning to Dance

The journey begins: What follows is how I got here.

First let me say this. There are tons of good threads teaching good strategies on ForeFactory. This is

just one more. There is a small difference in this one though. This one is aimed s!ecifically atcreating" learning and im!ro#ing a strategy sim!le enough that you can trade without e#er loo$ing atthe news ece!t to $now when to a#oid trading and to create an etremely #isual strategy that allowsyou to loo$ at a chart and see in literally seconds if you ha#e a trade or not and if one is close toforming.

I created this strategy and wrote this manual for myself. I wanted something #isually accurate andetremely sim!le" something I could sit down at the com!uter and $now within seconds" without adoubt whether or not I had a trade" or if one was forming. I was tired of learning so many nuances ofso many indicators and how to inter!ret the signals they create.

I needed to be able to just focus on the chart in front of me and not ha#e to be distracted by all thecra! of eye candy that so many traders seem to lo#e. To me" it was all just confusing.

%scillators that indicate o#ersold and o#erbought areas also failed often and re&uired me to focus onmore than the single chart in front of me. This became e#en worse with multi!le currency and multi!letime frame strategies.

'sing multi!le time frames was cumbersome and confusing for me for much the same reasons asoscillators. (ost use multi!le settings on multi!le indicators so each Time Frame loo$s slightlydifferent. Trying to watch multi!le time frames" fli!!ing bac$ and forth with multi!le indicators alwaysjust seemed lunacy to me. (y attention was always being distracted by the #arious and oftencontradictory signals generated and the different (o#ing )#erages and*or indicators on each timeframe.

Traditional +u!!ort and ,esistance le#els are also etremely subjecti#e and can be difficult to !lace ona chart !ro!erly" then there is the issue that they are not true le#els but more of an +*, -one that notonly fail often" but they can migrate o#er time. The same is true of Fibonacci le#els" )ndrewsitchfor$s /though I really li$e them0" Trend lines" 1lliot Wa#es" Wolf Wa#es" 234 5rea$outs and many"many others. Worse" all of these re&uired not only a fairly strong feel for the mar$et and where to!lace the lines in#ol#ed on the chart" it re&uired far too much !re!aration time for my style.

I6m not the most !atient !erson in the world when it comes to trading. I ha#e always been more of ama$e it ha!!en sort of !erson than a wait for it ty!e. I $now that6s a major shortcoming in tradingand I am getting better about it" but I still wanted something that was less subjecti#e" allowed for morefocus with less effort and with cleaner charts.

+o" I needed something on a fairly short time frame" that automatically drew on the chart e#erything Ineeded. 7erein lies the genesis of this strategy. 8ou see" when I started I had already made and lostlots of money in a traditional business. I made lots" but in the end there was always someone in thewood !ile so to s!ea$ to mess things u! at just the right time. +o" I started to research trading Fore"for the second time" with almost no money but etremely good research s$ills and a #ery &uic$ learnings$ill set.


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%ne thing I am etremely than$ful to my mother for in all this is that she told me once" in about fourthgrade that the most im!ortant thing I could e#er learn was how to learn. Then to ne#er sto! learning.Though she is gone now" that early training when I was a child came bac$ !owerfully when I began thisjourney.

The first time I loo$ed at Fore was in 299 or early 69;. I relied on a mentor who claimed to $nowhow to trade and it led to disaster. The rest of that story comes later in this commentary.

This time around I researched lots of strategies" literally hundreds and hundreds of indicators" I ha#ecollected se#eral thousand I ha#e loo$ed at. I also read almost e#ery thread on ForeFactory" and othersites li$e 5aby i!s" Fore?oobs and so many others I ha#e lost count ofthem all. I ha#e read se#eral" !erha!s as many as 2@@ e


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account in one night and in less than an hour. I also leaned at that !oint" that when !rice mo#es thatfast" there is no way to get out until it settles down a bit and li&uidity returns to the mar$et.

I was tired and went home for the night as it was about 3:@@ a.m. and I had been u! all day the day!rior. I told the man su!!osedly mentoring me to lea#e the account alone and not to trade it at all until Ireturned. Instead" he tried to catch a bounce off what he thought was the bottom" it went against him"

and with no way to get out in a fast mo#e" he lost most of what was in the account. There was onlyabout A3"@@@.@@ left when I returned. I was furious and didn6t trade again for almost ten years" untilmid 3@@;.

The reasons I decided to try again are not im!ortant" ece!t that I was fed u! with traditionalbusinesses" and what ha!!ened when I started and built one. I was also a bit disillusioned by some ofwhat I had seen of those who were on the 5oards of international com!anies.

%ne such e#ent occurred in a 5istro in 1ncino" Balifornia where I was on the 5oard of a startu!com!any with the li$es of the !resident of Disney International" ,iot /a !ost !roduction house in thefilm industry0" the e in#estment manager of +un )merica fund and a cou!le of others. The to!ic ofinterest was the reser#e !olice officer status and badge one of them and and how easy it made it to !ic$u! women. Disgusting to say the least for a business !rofessional to act that way.

+o" I started researching again and loo$ed at !robably 4@ or so bro$ers and their accounts* terms oftrading" e#ery single Fore site I could find in 1nglish" and read most all of them. I finally settled onForeFactory as the main one I would s!end the most of my time at reading and learning. I startedusing %anda" but the le#erage is atrocious. I switched to )l!ari" but the fills were so slow that oftenwhen I got filled the mo#e had already !assed.

I loo$ed at lots and lots of strategies and I started !racticing the %GF> strategy when it was the newand hot one and did ama-ingly well. I was doubling the account about once a month or so" e#en on%anda with almost no le#erage to s!ea$ of and was so ha!!y I could hardly stand myself. That didn6tlast long. What I didn6t reali-e is that the strategy was critically flawed. It wor$ed great in a sidewaysmar$et with fairly large swings on a daily and wee$ly basis" but when the mar$et !lunged in mid 3@@;and the 1uro dro!!ed from around 2.H to about 2.4" the strategy seemed to &uit wor$ing.

In fact what had ha!!ened was that it still wor$ed after a fashion" but the real signals were so fara!art that it was difficult at best for a newbie to figure it out. That started me on a new search for astrategy that I could be successful with.

I read most all of the threads on ForeFactory at that !oint and at least s$immed through e#ery singleone of them" including the !osts to the Interacti#e Trading threads and all the others.. I s!ent tons oftime on the Cames2H thread reading about and trying to understand the use of rice )ction" then theCac$o6s Fore 7ouse of leasure and ain thread trying to get a handle on how to trade a trend" butthere wasn6t much of a trend at that time" just the !lunge in !rices and huge swings. I studied hil ?el6sstrategies and how he tal$ed about the flow and rhythm of the mar$et" but had a difficult timefiltering out the bad trades e#en with his use of the ()BD.

I tried the 5ago#ino (ethod but didn6t understand enough about using a filter to $ee! me out of thebad trades" and hel! me get into the good trades" so I mo#ed on to the 3@ method" loo$ed at )ndrewsitchfor$s" the 5line (ethod" most of T156s strategies" the IBW, strategy /Im!ulse Borrecti#e Wa#e,etracement0 and did reasonably well with the latter.


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The !roblem with IBW, was it was #ery time intensi#e and re&uired a lot of wor$ to use. 1#en withthe indicators I found it was still a bit daunting though it seemed to hold /and still does hold0 great!romise. I finally settled on )ndrews itchfor$s because of the fact that )ndrews had used it to amassmillions of dollars" in the early years of stoc$s before the De!ression" it was well documented" seemedeasy to use and so on.

I was !articularly im!ressed with the fact that !rice does indeed seem to always come bac$ to themean or the median line of it6s range etremely often. There was a !roblem with it though. First" itwas etremely subjecti#e for a newbie to try to use consistently. The higher time frame usages of itwere the most successful" but re&uired huge sto!s" often @ to 2@@ !i!s to allow it room to breathe.

That meant I had to ha#e a larger account than I did" use less le#erage or ris$ than I wanted to achie#emy goals" which in turn meant a much longer time to be able to li#e off my trading. It was successful"and I did reasonably well with it" about HE accuracy in my trading. 5ut I again mo#ed on because ofthe com!leity of the discretion in using !itchfor$s. If you search some of my !osts" you can read allabout that on the itchfor$s thread started by justcatalin.

This was also all during the !eriod of greatest #olatility with huge swings in !rice in late 3@@;. Thatactually made things worse for me as I would see these huge mo#es of se#eral hundreds of !i!s" se#eraltimes a day and miss most of them e#en though I was at the com!uter when they ha!!ened." so mysearch continued for an easy to see and easy to use strategy that re&uired little effort to actuallyim!lement successfully.

I wanted something reasonably mechanical. If >" do G ty!e of stuff. Discretionary trading seemed all=ree$ to me" and a bit of #oodoo thrown in for good measure. I understood using trend lines andloo$ing for chart formations" but that re&uired a lot of manual wor$ to draw those lines and !ut mes&uarely bac$ in the Discretionary cam!. Drawing those lines can be etremely discretionary and ifyou loo$ at the charts they create" they can be #ery confusing for a newbie" which I was" and may bestill considered by many.

This was about the time I ran across the ?o 5rainer Trades Thread and trading using nothing but+u!!ort and ,esistance le#els. =reat strategy and a great thread to read" but again" it6s a bit more longterm than I wanted and also a bit more discretionary when it comes to drawing the lines.

I later ran across the thread started by 1ndroute about trading the B%= indicator /Benter of =ra#ity0titled The art of Trading ()s and was suitably im!ressed" but it too$ me bac$ to trading using(o#ing )#erages and was #ery similar to the 5ago#ino Thread I had already tested and left. 5ut hedid get my attention with a comment he made" that no one e#en challenged him on /and no I won6t tellyou what that was" go read it for yourself0. +o I sent him a ( and as$ed a few &uestions

To his credit" 1ndroute not only answered" but s!ent &uite a bit of time with me teaching me how to use(o#ing )#erages and +!udFyre6s +tochastic Threads in trading the way he did. We became goodfriends in the !rocess.

7e was doing ama-ing things with that strategy but I couldn6t seem to get a handle on it !ro!erly. I hadsome great trading days" and some really" really bad ones. With his hel!" I continued wor$ing on mytrading and decided that I needed something so sim!le a total idiot could sit down and sim!ly see atrade and ta$e it.


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+till" watching him har#est 4@@ to @@ !i!s each and e#ery wee$" wee$ in and wee$ out no matter whatthe mar$et was li$e was #ery" #ery ins!iring.

I wor$ed with se#eral different (o#ing )#erages in an attem!t to find a way I could use just one withsome sort of filter and sim!lify the charts the absolute most !ossible. I had some success with that" but

mastery of a strategy enough to create trading consistency eluded me still.

I researched and tested scal!ing techni&ues" the B strategy on FF and all of this has led me to concludethat trading is really more li$e learning to dance or !lay #ideo games than anyone but !ossibly myselfwill e#er admit" which brings me bac$ to Discretionary trading. It is filled with tons of self fulfilling!ro!hecies" which I will come bac$ to later.

+omewhere along the line" reading Tur#eyd6s thread (2 only traders thread" any air" I encountered(agnumfrea$ and his trading journal and strategy. It was etremely sim!le" #ery" #ery close to what Iwas loo$ing for" but (2 is a bit fast for my tastes and e!erience le#el. +o I mo#ed on" but ultimatelyfound a way to modify it and used it as a basis for my own strategy. Later I modified it e#en more tothe strategy I now use on (2.

Trading #s Dancing

In defense of discretionary trading" it is sort of li$e dancing. If you ha#e e#er been on an o!en dancefloor" say li$e in a country western bar or a ballroom of some $ind" you $now that there are a few basicrules" but loooooooooots of human discretion in the !rocess. Those few rules can !roduce the mostwondrous and elegant !hysical harmony between a cou!le and all the other cou!les on the floor onecan imagine.

The flow of the dancers on the floor is all in the same direction" but occasionally you see a cou!ledancing counter to the flow. We6ll ta$e country western dancing as the eam!le because I am morefamiliar with it than ballroom dancing.

1#eryone is on the floor at the same time" sometimes hundreds of cou!les. +ome dance west coastswing" some east coast swing" some straight swing" two ste!" Teas two ste!" tra#eling two ste!" halftime" just to name a #ery few of the !o!ular dance ste!s. Thing about it is that more li$ely than not"they are all going in the same direction and no one collides" no one gets hurt and e#eryone has a lot offun.

It loo$s chaotic" but in reality there are lots of smaller sets of rules in !lay. If you loo$ at just onecou!le" that becomes #ery !lain and a good set of !artners can ma$e it loo$ li$e music in motion.

Trading isn6t much different. Lots of smaller sets of trading systems rules in !lay" all !retty muchgoing in the same direction as the trend" or a few in counter trend style. The only ones who get trulyhurt are the ones who ignore the rules and end u! colliding with someone else6s strategy. Those gettinghurt in Fore would be the newbies who !ro#ide so much li&uidity for e#eryone else.

It loo$s chaotic" but really all that rice )ction is made u! of millions of rule based decisions by all the!artici!ants. The true rules of the dance in the case of trading anything is what has been stated so#ery many times by the =reats of trading" )ndrews" Dow" (erchal /who most ne#er heard of" but!redicted the Dow )#erage 2; months in ad#ance" co!yrighted his chart and missed by fractions really


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in each swing of his chart com!ared to what actually ha!!ened0" 5abson" Fibonacci" 1lliot" Tim (orgein more recent times and se#eral others.

Learn those basic rules" gain the floor time /chart time in trading0 and you too can ma$e it loo$ easy"fun" musical and li$e !oetry in motion.

It too$ me about a year to get really good at dancing" but when I did I could dance with any !artner"e#en one who had no e!erience at all" and ma$e the dance loo$ sim!le" easy" musical" elegant and li$eshe had been dancing most of her life.

Trading isn6t any different" no as!ect of life is. There are basic rules" a flow to learn to becomeaccustomed to" a rhythm to follow and wallahJ" you ha#e a new Fred )stair loo$ing for his =inger,ogers. hil ?el in his thread here on FF tal$s incessantly of the flow or the rhythm of the mar$et"and that the most im!ortant thing is to learn it.

I ha#e tal$ed with many and researched literally thousands of hours of strategies" methods and it allboils down to this" just li$e dancing6s rules" there are rules for successful trading.

2. What goes u! must come down. /=ra#ity03. For e#ery action there is an o!!osite and e&ual reaction. /(edian Lines04. Life follows !redictable !atterns. /1lliot Wa#es0. It ta$es a lot of energy for a trend to turn. /Inertia0. There is a rise and fall to all rice )ction. /+lee! cycles* Bircadian ,hythms0H. 1#erything is built on smaller things. /Fractal +cience* =eometry" etc.0

Want to trade 1lliot Wa#esK Then learn what they are and how to identify the major ones and they willa!!ear on e#ery chart in e#ery time frame you can find. Then learn the flow and go with it.

Want to trade Fibonacci" it6s not roc$et science" just ta$es some floor time to learn the dance.Boincidentally" Fibs will hel! you find wa#es and wa#es will hel! you find Fibs. )ma-ing huhK %h""""the 3@ (o#ing )#erage and the 2@ (o#ing a#erage ha#e an uncanny way of following bothJ (aybethat6s because they are built on rice )ction that creates the dance of both. +o you could trade(o#ing )#erages too" loo$ing for Wa#e signals or Fib le#els and it will wor$. 8ou just need floortime to learn the dance in#ol#ed.

+ame with any and e#ery other strategy or method out there. ?ot one of them is truly significantlybetter than another one. They are all just #isual aids to hel! you see rice )ction" shorten the learningcur#e in the dance and to hel! you find that ,hythm in the dance flow. It is the trader who ma$es thedifference" not the strategy" just li$e in dancing it is the dancer.

1#eryone is different" my brother lo#es wa#es and counting them. I li$e the sim!licity of (o#ing)#erages cou!led with good rice )ction setu!s.

Find a dance you li$e" can understand and see then D)?B1 ITJ Learn the flow" learn to see the!atterns of your !articular trading dance and &uit listening to gurus who want your money. uitarguing about which one is best they all wor$. Learn to use the mind =od ga#e you and learn 8%',D)?B1J It will most li$ely be at least a tiny bit different than anyone else6s" because 8%' aredifferent.


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%h" and finding a mentor for your !articular style of dance would be a great thing. They can hel! youlearn the ste!s and the rhythm of the dance. To find a mentor isn6t hard" that is what all the threads onFF are about" !eo!le sharing their strategy with you so you can learn.

,esults are all that countJ:

I lo#e this &uote" Those who say it can6t be done are always being interru!ted by those actuallydoing it.

%r how 6bout this one" Ban6t ne#er couldJ %r this one" )rgue for your limitations" and sure enough"their yoursJ 7ow 6bout this one" Lead" follow" or at least get out of the wayJ

ersonally" I wanted more than the status &uo of trading. I wanted to really master it and still do.+o" I traded at way abo#e the recommended ris$ le#el" in %FF hours" and %?L8 the basic system*indicators of the things I tested. I wanted to train myself to ignore the account si-e" the moneyin#ol#ed /e#en in demo0 and to get to a !oint where neither greed nor fear had any effect on mytrading. I6m not com!letely there yet" but I am #ery" #ery close.

It has already been said" those who insist something is im!ossible are always being interru!ted bythose doing it. I once had a friend who started a business with almost no money and no businesse!erience and made #ery good money. When I as$ed how he did it" he said" I was too stu!id to $nowit couldn6t be done" so I did it. Lots of truth in that.

Loo$ to Cac$o6s or 1%7ater6s threads. They and many others ha#e already !ro#en that #ery high returnsare !ossible on a #ery consistent basis. Cac$o went from trading one standard lot to an amount thatwould shoc$ the nattering na


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There is literally ?% field of human endea#or where the following doesn6t a!!ly. If you can hold it inyour mind" you can hold it in your hand. Cesus taught it this way" ?othing is im!ossible for him whobelie#es.

Why should !eo!le be limited to trading styles and !ractices that $ee! them from sur!assing 3E !erdayK The holy grail is you or me and how we choose to belie#e and a!!ly our efforts to )?8

field of endea#or.

+hould I go on and on about all the things that were im!ossible that are now e#ery day e#ents" hearttrans!lants" organ trans!lants in general" sur#i#ing cancer /and by the way" !hysicians in that field willtell you that mental attitude has a tremendous amount to do with beating that0" laser surgery to correcteyesight" lasers to remo#e ecess fat without incisions" !ersonal com!uting is now common !lace whenit was thought early on that it would be im!ossible to ma$e the B small enough or chea! enough fornormal !eo!le to own one. The amount of data currently !ossible to store in a B is ama-ing" mostlibraries in the early days of the 3@ thcentury didn6t ha#e that much information. In fact" as I write this"it is !ossible to transmit data in terabytes !er second. ) cou!le of those seconds is e&ui#alent to theLibrary of Bongress. The list of !re#iously im!ossible things that are now common !lace is almostendless.

Those who choose to belie#e it !ossible" $ee! at it and e#entually achie#e it whate#er it is forthem. 8ou WILL ma$e it in trading" if you stic$ to it. For those of you who choose not to belie#e"you6re right" and you will ne#er ma$e it.

5y the way" )lan )ndrews" trading STOCKSin /if I remember correctly0 about 292 or so made hisfirst (ILLI%? in a year at the challenging of his father and in#ented the )ndrews itchfor$ methoddoing it. 'ltimately he made o#er A@"@@@"@@@.@@ /the amount might be off a bit0 and 5abson did e#enbetter before )ndrews came along.

+oros made 2 5ILLI%? in %?1 D)8 doing this sort of thing. %h" and there are others who ha#e donesimilar things.

htt!:**www.in#esto!edia.com*articles*fore*@;*greatest


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For the most !art I ha#e found trading to be an arena filled with tons and tons of self


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If one o#er analy-es a dance techni&ue they mess it u!" the flow of the dance suffers and sometimesthey e#en get hurt. If they don6t understand the cues the same thing ha!!ens" only often it6s worse .Trading is no different.

8ou could also com!are it to a #ideo game. There are rules to !lay by and when you learn them" it

becomes #ery sim!le to win or at least !lay really" really well. There are rules as well in the mar$ets.Those rules are all based on these self fulfilling !ro!hecies of human !sychology. Learn a few thatma$e sense and you can !lay the game really well too.

%ne last thought about these self fulfilling !ro!hecies where indi#iduals are concerned. 1#eryonegrows u! in life with certain limits im!osed on them by those raising them" and then on those theysurround themsel#es with and those they loo$ at as authorities in any area. These limits then alsobecome self fulfilling !ro!hecies.

I once had a boss tell me that the only reason I wasn6t ca!able of ma$ing a si figure income wasbecause I ne#er had. It made no sense to me at the time" but man was he rightJ eo!le all around me inthe field I was in were ma$ing si and se#en figure incomes and I was struggling to ma$e the midfi#es.

Then" something miraculous ha!!ened" I hung around them long enough to learn to get !ast that!ersonal limit and the day came that I had way more than si figures in my ban$ account.

8ou can ma$e a strong li#ing with only a small account to start with. It may ta$e a while for you to getto the !oint you belie#e that" but once you do" it WILL ha!!en. Mee! at it long enough and you willultimately become #ery wealthy. It de!ends on what you are willing to belie#e and what you are notwilling to belie#e.

5y the way" you don6t need a lot of education either to be successful. ersonally" I thin$ I6m !rettyintelligent and I will be the first to tell you that intelligence often got in my way of becoming aconsistent trader.

Let me gi#e you an eam!le. During World War II" there was a se#ere need for good lenses for all sortsof uses" telesco!es" !erisco!es" binoculars" etc. +o they brought in a bunch of !eo!le to be trained toma$e lenses by a master at the craft. /no in those days they did not ha#e the elaborate machinery oftoday to do it.0

The !roblem was that not one of the students could turn out a flawless lens e#en after months andmonths of attem!ting it. Then %?1 student started turning out !erfect lenses. Immediately they beganto &uestion the student about what he was doing that the other students weren6t.

7is answer was startling" it went something li$e this. I don6t $now" I just started watching the masterlens ma$er and noticed that he ne#er used his wrist to turn the lens. 7e only flees and turns from hiselbow. +o I started doing it that way.

T71,1I? is the great lesson of all this. There are great traders" great students of those traders" andthey are always im!ro#ing things" creating better strategies" modifying and im!ro#ing what they do"!erfecting their craft. There are a few who can actually teach what they do that ma$es or made themsuccessful enough to hel! others. Then there are limitless numbers of !eo!le who do not $now how to


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learn" cannot teach worth a cra!" and sit around telling e#eryone else how it can6t be done.

Trader discretion is the %?1 thing that sets a masterful trader a!art from all other traders.+%(1TI(1+ they $now what it is they are doing instincti#ely or intuiti#ely sometimes they don6t.IF they do" they can teach that !art of trading to others who can then im!ro#e on it" ma$e it their ownand ho!efully hel! others.

8our %W? BhainsJJ

The first obligation of e#ery trader is to themsel#es. It is to become free from the chains of your ownlimitations and those im!osed on you by a lifetime of good intentions from others to hel! you see thelimits of the real world. )s a trader" you absolutely must find and stic$ to one strategy long enoughto become consistent first" then stretch it to the le#el of financial security. In the !rocess you will learnmore about yourself than trading and you will e#entually ma$e that strategy your own bycontinuously im!ro#ing and twea$ing it to fit you.

ersonally" I ha#e just turned the corner on being more consistent" after a little o#er a year. I ha#e alsofinally de#elo!ed a strategy that I can use and sim!ly sit down and see whether or not I ha#e a decententry. I ha#e steadfastly refused to acce!t the normal trading limitations that so many others succumbto in their journey.

I get so sic$ and tired of the tirades of traders who s!end so much time telling others how it B)?6T bedone I just wanna !u$eJ

There are lots of traders who do etremely well" far" far better than the gurus of trading mediocrity.

Let6s see" (ystic=enie did an ama-ing thing when he traded" just read it and the bashing he too$ for it./7ow I Turned 2$ To 2@@$ In ) W$JJJ0 (agnum Frea$ does really" really well e#en on the (2 chart/The %gre6s Trading Cournal0. Cac$o has a well documented trading history /Cac$o6s Fore 7ouse ofleasure and ain N Fore Factory0. )nd" don6t forget the !eo!le o#er at 1%7ater6s thread. /Tradewhat you see ?%T what you e!ect0 If you read" there are lots and lots of others who are doing reallywell too.

roblem is most end u! getting bashed by the nattering nabobs of negati#ity and just gi#e u!. ?1O1,'ITJ

%h" and lest I not include ?on FF records of wining traders. There ha#e been many in the outsideworld who ha#e done ama-ing things as well and not just the huge ones" but done ama-ingly wellconsistently.

In#esto!edia has a short list of some ama-ing trades made by at least three that would shoc$ most!eo!le. /The =reatest Burrency Trades 1#er (ade0 7ere are some ecer!ts.

'sing the relati#ely new techni&ues afforded by o!tions" Mrieger too$ u! a short !ositionagainst the $iwi worth hundreds of millions. In fact" his sell orders were said to eceed themoney su!!ly of ?ew Gealand. The $iwi dro!!ed shar!ly as the selling !ressure combined withthe lac$ of currency in circulation. It yo


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wor$ing as a trader for =eorge +oros6 uantum Fund. /and this was in 5%?D+ of all thingsJ0

(any s!eculators" =eorge +oros chief among them" wondered how long fied echange ratescould fight mar$et forces" and they began to ta$e u! short !ositions against the !ound. +orosborrowed hea#ily to bet more on a dro! in the !ound........+oros made at least A2 billion off thisone trade. /)?D" horror of horrors" he 5%,,%W1D (%?18 to do itJ0

+o""" B7%%+1J 8ou can allow !eo!le to lie to you that all this is difficult" that starting with a smallaccount is im!ossible" that building that account into a #ery large one fairly &uic$ly is im!ossible andstay in the chains of doubt" or grow u! and o#ercome all of that cra!.

I heard e#erywhere I researched that I needed to find a strategy and ma$e it my own. That is whatthis strategy is about and why I s!ent the time to write this" so others could read of the journey of onetrader and benefit from it" !erha!s sha#ing !recious time off their own journeys.

The net thing is that trading absolutely must be treated as a business" not a ris$y gamble li$e in acasino.

1#ery business I ha#e e#er started or owned re&uired two core elements. +acrifice and tenacious"!ersistence. (oney was always secondary to success.

Learning to actually belie#e and training the mind was always the most difficult !art. The mind can!lay tric$s on one. 1motions such as discouragement" de!ression" feeling tired" fear and other suchnegati#e emotions are the tric$s it !lays on you. +o are some of the more !ositi#e ones.

1#er heard of manic de!ressi#e disorder. Letting one6s emotions run wild in 1IT71, direction iswrong and a !roblem to be dealt with harshly and early on in the effort. If someone else has done it"that establishes %?L8 a baseline against which to im!ro#e. If 8%' ha#e done it" the same is true.

Find ways to stay moti#ated" to eliminate greed" fear" too much enthusiasm" too much ecitement about

the results. Too much of any emotion in trading is an issue to be dealt with. Trading ,1)L money in#ery" #ery small accounts is the 51+T way to learn to deal with that.

Trust me" you can get just as ecited o#er a balance of 2; cents that grows to 3 cents in a wee$ as youcan going from 2;@@.@@ to 3@@.@@ in an account. /yes" there is a com!any where you can trade li#ewith 2; cents" %anda is it6s name. I belie#e that !ossibly I5F> can do similar" not sure.0

If you don6t belie#e that" as$ 1ndroute" he heard meJ

)s for newbies just starting to learn" D%?6T =IO1 '" ?%T 1O1,J %r" to &uote one of the mostgiftedly determined men of our time" ?e#er gi#e u!" ne#er gi#e u!" ne#er gi#e u!J


13/14

It6s ne#er too late" ne#er" ne#er" ne#er" ne#er" ne#er" ne#er e#er gi#e u!J If e#eryone in the whole worldsays it can6t be done or you6ll ne#er get there I=?%,1 T71( and $ee! on $ee!ing onJ 8%'WILL =1T T71,1J

5y the way" the 51+T TW% boo$s I e#er read was Thin$ and =row ,ich by ?a!oleon 7ill and The

=reatest +alesman In The World by %g (andino. )wesome boo$s" great life lessons.

I li$e to say the cru of Thin$ and =row ,ich this way. If you can hold it in your mind" you can holdit in your handJ

?1O1, =IO1 'J

)s for logic it6s way o#er rated. 1instein was not using logic when he daydreamed about riding abeam of light and started wor$ing on his Theory of ,elati#ity. 7e was in F)BT using the facility ofimagination which s!ecifically remo#es the need for logic to achie#e that.

I mean" really" how logical is it for a !erson to thin$ of riding a beam of lightK

Logic has it6s !lace in )++I+TI?= one to sur!ass limits" ?%T in !lacing them. 1instein only usedlogic )FT1, he dreamed or day dreamed of riding a beam of light.

T71 +)(1 is true of any and all careers" including trading. Dream it FI,+T" then use e#ery tool youcan find to achie#e itJ

Let6s ta$e that one to the etreme. 1instein6s famous formula can actually be used to !ro#e the secondline in my tag line of If you can hold it in your mind" you can hold it in your hand.

1Pmc3 1nergy is e&ual to mass times constancy /s!eed of light0 s&uared. Thoughts are energy"basically bio


14/14

I ha#e already listed se#eral who ha#e done this. ?ow" it6s your turn" and mine. 8ou will ha#e lossesand it6s as much a !art of your business as sho!lifting is of retail" but you can o#ercome any loss youe!erience. Trust me" I ha#e lost literally e#erything in my life a few times and always got it all bac$each time.

With that" I may ha#e said all I can for the moment. ?ow lets loo$ at one of the biggest myths in

Fore. It is the (yth of im!ossibilities.2. It is !ossible for one to do #ery" #ery well from day one. Cust as$ Tim (orgue" who !aid

his way through college trading ForeJ3. It is !ossible to gain great wealth in a relati#ely short !eriod of time. The !eriod will

#ary from trader to trader.4. The 7oly =rail is the trader not the system and the better the trader6s discretion" the

more !owerful the =rail and the results. Time frames are not as rele#ant as many want you to thin$. The only two times the

mar$et itself e#en recogni-es is the o!en and close of the mar$et. The rest is how we!ercei#e and dissect it for our own !ur!oses.

. Larger time frames allow for longer !eriods of decision ma$ing and eliminate thenoise often tal$ed about.

H. +horter time frames re&uire the ))) game from any and all traders using them" but theyalso ta$e great ad#antage of the noise or breathing of the mar$et allowing for moreand greater returns in a shorter !eriod of time

. +afety is a !ersonal thing for each trader and is based eclusi#ely on that s!ecific trader6s!ersonality" !sychology and emotional self control.

;. ,is$ is also a #ery !ersonal thing. 1ntre!reneurs engage on a daily basis in acti#itiesstarting businesses that others would ne#er dream of because of the !ercei#ed ris$ indoing such things. The ris$ of larger !ercentage trades" smaller time frames is eactlythe same thing.

9. +trong returns de!end also eclusi#ely on the trader6s style and ability to trade his orher !lan flawlessly.

3. Bom!ounding increases returns more ra!idly if done an a !er trade basis as does lettingthe account grow without withdrawals for a !eriod of time.

2. +$ill is gained with e#ery trade" whether or not one understands or e#en com!rehendsthat. The 7uman mind was designed to learn and the only !eo!le who don6t learn arethose who set themsel#es in the concrete and chains of their own self limiting beliefs.

3. %nly &uiting can e#er sto! you from achie#ing your goals. The mar$ets can6t" othertraders can6t /unless you listen to their negati#ity and become infected with it0 your ban$account can6t" only you can &uit. If you refuse that" you WILL get there" where e#er yourthere isJ

I could !robably go on and on" but it6s late and I want to go trade.

=od bless and good trading

learning to dance - my journey

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