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<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Jerry Brunet <<A
href="mailto:jbrunet@xxxxxxxxxx";>jbrunet@xxxxxxxxxx</A>><BR><B>To:
</B>RealTraders Discussion Group <<A
href="mailto:realtraders@xxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxx</A>><BR><B>Date:
</B>Sunday, August 09, 1998 3:05 PM<BR><B>Subject: </B>Psychology of
Trading<BR><BR></DIV></FONT>
<DIV>Hi Realtraders,</DIV><BR>
<DIV> I recently bought Mark Douglas's book, "The Disciplined
Trader". I am curious as to whether any of you have an opinion of this
book. One thing he says that caught my attention is that deep down inside,
many traders like to avoid taking responsibility for their trading
decisions. If that be so, I was thinking, that may be a factor in our great
interest in systems. If the system says buy or sell, and I do, then I don't
have to take responsibility for that trade in my internal thought
processes.</DIV><BR>
<DIV>What do you think?</DIV>
<DIV> </DIV>
<DIV><FONT color=#000000
size=2> Hi
Jerry,</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000
size=2>
This is one of three books I keep on my desk and re-read sections of it
frequently. While, like any book like this it is subject to
interpretation, I think you have missed the point here. On page 53 he
states; (parentheses are my comments)</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2> "In an unstructured environment
(such as the market), the less structure you create for yourself, the less
accountable you are, the more easily you will be swept along by the force of
events, and the less control you seem to have over life (trading).
However, having less structure has the benefit of shifting responsibility
for the events in your life to other unidentified forces." (such as
superstition)</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT><FONT color=#000000
size=2></FONT> </DIV>
<DIV><FONT color=#000000
size=2>
Systems add to structure and help you develop discipline, the goal should be
to trade perfectly. Most of us have experienced one or all of the
following at some point: We see a signal to make a trade but hesitate,
only to learn later the trade would have been very profitable; or, we enter
a trade which goes against us but we fail to get out, hoping it will come
back, only to turn a small loss into a huge one; or, we enter a trade which
becomes profitable but out of greed stay in to long and watch the profits
disappear. All of these are occur from a lack</FONT><FONT
color=#000000 size=2> of discipline.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000
size=2>
Even the most basic system should include methods to avoid all three of
these problems. In Chapter 16 he recommends buying or getting a simple
system from a book (not developing one at this point) with well-defined
entry and exit points. Trade the system exactly according to the
rules. The goal is to overcome any resistance to following rules and
develop the self discipline to trade correctly.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000
size=2>
The point he is making is that by failing to act appropriately in any given
situation the trader is giving up responsibility to forces beyond his
control, usually with dire consequences.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000
size=2>
Good luck and good trading,</FONT></DIV>
<DIV><FONT color=#000000
size=2>
Ray Raffurty</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sat Aug 08 15:15:26 1998
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From: "BrentinUtahsDixie" <brente@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: X Bar and more
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Mr. Terry Quinn,
> The morality/rationality/ability
> discussion(regarding 16 year olds trading) most likely doesn't belong on
Real traders > anyway.
This little diversion probably does skirt the boundaries of what this forum
is intended to be about. However, this type of discussion allows for a
little color and discussion to come into what is often a very boring
subject area. I though it was really quit amusing the way some respondents
got so excited. You'd have thought that they were talking to their old man.
"No you can't take the car Friday night," type of thing.
If you boil down the basics of trading down to the essentials we could post
them someplace and the rest of this forum would be post after post of, "I
just heard of Mr. Somebody. Has anybody else heard of him and just what do
you think of him" type of posts.
BTW the Quinn/Downs set of indicators is a nice little set of indicators. I
use price in relation to my own proprietary indicators(some quite similar
to yours) to make trading easier for myself. Of course your approach isn’t
revolutionary but if it’s working for you then its good enough.
Best Regards,
Brent
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