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May 10, 2015

Visiting MIT


I hope this message finds you healthy!

I am in Boston. I am so happy to be here! I think about you and Jay Forrester and visit MIT to just be there. The thought of being in the same place as you at some point of my life is inspiring.

I fly back to [Country] tomorrow. I wonder if you can sign the book Govopoly before shipping it.

Thank you

Thank you for sharing your process.

I recall visiting Cambridge, England and viewing some of the original manuscripts of Isaac Newton.

I notice that people who achieve fame for this or another accomplishment also lead personal lives and have regular problems, and struggle along with them, like the rest of us.

Especially in the earlier part of his life, Newton was a deeply introverted character and fiercely protective of his privacy.

Even in his maturity, having become rich, famous, laden with honours and internationally acclaimed as one of the world's foremost thinkers, he remained deeply insecure, given to fits of depression and outbursts of violent temper, and implacable in pursuit of anyone by whom he felt threatened.

The most famous example of this is his carefully-orchestrated campaign to destroy the reputation of Gottfried Leibniz, who he believed (quite unfairly) had stolen the discovery of calculus from him.

Yet he was also capable of great generosity and kindness, and there is no lack of tributes to his affability and hospitality, at least in his later years.

Isaac Newton

extraordinary accomplishments
and regular problems.

May 10, 2015

Confronting Father

Hi Ed,

Recently I spend two days alone with my dad. I try to receive him and listen to him. I find that he questions me a lot and when I answer him he tends to reply with some exasperated tones and noises. As I continue to spend time with him my upright posture turns hinched. Before I lead my walk with my heart out. I feel my heart tighten and harden.

I find it difficult to receive him.

I visit my old home and I clean uo the house. I have much vigor and excitement to do productive things although they dont always lead to money.

Today I find myself holed up in my room and I f--king hate it. I feel like I want to vreak every single thing in the f--king house. I want to kick ajd pubch things I want to take a bat and smash the most valuable things in this house. Instead I keep it inside and I find my energy slowly draining. Not wanting to do anything. Bored to death.

Bring this up because I think Im the other side of the father and son FAQ contributor story. Everytime my dad tries to make small talk with me I sense him trying to get friendly and get my guard down before bashing what self cobfidence I have left. I feel my jaw cleching and my eyes water slightly. My breathing heavy.

I dont want to interact with him. I dont know what to do to let this feeling pass. The muscles from the side of my jaw harden from clenching too tightly.

I want to express this feeling and let it out in a healthy way. I wonder how I can express this feeling.

I feel really juvenile venting this stuff to you. Like its something that growb adults just stuff down and repress instead if complaining about and expressing.

I hope you dont mind my sending you emails when I get feelings. If you do please let me know.

Thank you for sharing your process.

May 10, 2015

Workshop Follow-Up

Ed, (bcc support team and my local tribe)

Thank you for your support with my workshop follow up. Thanks to those who provide such useful comments and feedback.

I commit to:

"Work hard on my trading systems for three hours a day: See what feelings come up. Report ... to my support team and FAQ." This starts from Ed's comment at the workshop - approximately "Are you actually serious about trading?"

* I average just under 3 hours per day on my trading systems for the last three months and almost exactly 3 hours per day (3.01 hours) since the workshop.

I fail to meet at 31 March 2014 deadline to be trading and will be taking three of my local tribe members out to dinner shortly. I have a similar commitment for my next visit to the city of my old Tribe in July or August 2015.

Following a hot seat previously reported to FAQ, I have been focusing more on the positive reasons for trading and for getting the system done rather than forcing myself to work.

This seems to give me more space to work on the systems more effectively and I seem to have better insights. So at this stage I am in the final stages of testing. Testing is fairly routine. I find several bugs but I fix them easily.

I make no more predictions about when it will be done.

I have remaining to retest: rollovers, fx rebalancing, some special contract types like Australian interest rate contracts, position size calculations, limit tracking. and some parts of margin accounting for FX. I have tested all of this but need to retest due to changes I have made. Then I plan to optimize the strategies, add code to output orders, arrange a daily data feed, determine which contracts to trade, paper trade for a bit, fund the account as needed, and start trading. I have for my following project: trading stocks. I am looking forward to that.

* I have good health. I have worked out a stable hormone regime which provides good results. A cancer scare turns out to be nothing.

* My other activities are going pretty well. The local Tribe is going well with 9 members now and several lives turned around. Some great hot seats which I have reported to FAQ. Progress with physics continues using the approach I describe in my last report. I am still enjoying reading lots of text books for general knowledge. I complete my project of reading the ancient Greeks after several years. Now, we march on Rome!

Next report 10th August 2015 - in three months. I plan to continue my reports at this frequency until I have either started trading futures or I have given up.


Thank you for sharing your process.
May 10, 2015

Mozart Piano Concerto No 21 C Major - Serkin and Eugene Ormandy


If you have a half hour and want an example of mastery in music, see and hear:

Thank you for sending me the link.
May 9, 2015

Do What Your Partner Says - Brings Up Feeling


After reading 'Do What Your Partner Says' and 'Send in the Clones' FAQ entries from May 7th a lot of strong feelings come up.

I realize I still have fear of rejection and ridicule when I share feelings of loneliness or wanting attention and more US time with my wife.

I find the idea that we feel chemistry with someone who reminds us of a parent that we may finally have a chance to change into our ideal intriguing.

I take some time to think of my own relationship with my mom, the feelings feel unclear. I can recall my father making fun of me for wanting/missing my mother at the age of 12ish. I also recall feigning sickness or creating drama to grab my mother's attention. I do the same thing as an adult when I want attention from my wife.

Deep feelings surrounding my mom occupy my emotional blind spot. I ponder how my mother's upbringing with a semi absent mom and dad affect our relationship and what rocks get pass down through the generations. I feel gratful to have a Tribe to assist with my exploration of my emotional blind spots

It takes me a week to express my feelings to my wife around wanting to spend more time together.

Knots of anxiety occupy my stomach I feel fear as my emotional risk control kicks in. After talking my anxiety subsides. I now wonder about my propensity to feel distrust toward the longevity of my happiness and how I remain on guard just in case.

Thank you for sharing your process.
May 9, 2015

Wants Book Endorsement

Dear Mr. Seykota,

... i am a professional trader - I have been actively trading the markets for the past 8 years. For the past 2 years I have been working on a book called [Name], which I am pleased to announce the release in a few days. The book essentially deals with the psychology of trading. I am a Zen Buddhist and I firmly believe that self knowledge (an indispensable ingredient in trading success) comes through a spiritual practice of some sort. Spirituality does not have to have religious connotations. Sitting in contemplation of your body, mind, and breath is a spiritual practice in and of itself.

I really enjoyed your interview in The Market Wizzards. Your Whipsaw song is almost always on my mind when I get stopped out. I would be so honored if you would consider endorsing my book, in the form of a few words that I could put on the back cover. I am getting an endorsement from authors and experts - [Names], etc. I have also contacted [Name], but since he only does endorsements for people in his close circle instead he offered me to share a list of my best trading practices for his next book ...

Every year for the past 3 years I have been donating 5-10% of all my trading profits to [organization]. My next plan is to continue supporting them with what I can, so a good percentage of all the proceeds from the sales of this book will go directly to this foundation and that regardless of how many copies I have sold. I believe that our lives has to be more than an exercise of accumulating money. I think we were all meant for a greater purpose - and donating to charity is my contribution to this world. It's something that gives purpose to my life

You will find attached to this email a copy of my book. If you do decide to give it a try, I hope you enjoy it as much as I enjoyed writing it.

Kind regards

Thank you for sharing your process.

From your forward:

"Equanimity is an important aspect of trading and it plays a fundamental role in trading success. Consequently, one cannot expect to extract money out of the markets on a consistent basis if it is missing."

You say "consequently"- and then your conclusion does not follow from the premise.

You state "one cannot expect" - and then you do not indicate how equanimity controls expectations - or how expectations relate to extracting money.

You imply that people have to enter a calm and peaceful state to succeed.

You might consider soliciting opinions on this from Donald Trump, Donald Duck and, even, Ronald McDonald on the conditions for success.

Also, you might consider hiring a good editor.

Also, you might also consider taking your feelings about <mastering English> to Tribe.

For your back cover, you may use everything in this panel, or none of it; you may not take any part of it out of context.

A Highly Successful Man

evidently demonstrating


May 8, 2015

More on Father and Son

Dear Ed,

thank you for your observations.

Regarding 2: you might re-read my posting. In fact I ask my son if he allows me to command him to move.

Please observe that I am not trying to show that I am right in this. Maybe my text is not clear, or maybe I am missing a subtle tone.

Best regards,

Thank you for amplifying your remarks and for sharing about how you relate to your son and how you have a pattern of requesting permission to give him commands.

Method #1: (control and manipulation)
Father: Do you want me to tell you what to do?
Son: Uh, OK, I guess.
Father: OK, I command you to move.
Son: Uh, OK, I guess.

Method #2: (intimacy-centric)
Father: I wonder how you feel about moving.
Son: Uh, I don't know.
Father: Thank you for telling me.
Son: Hmmm ... I kind of like how you don't try to run my life anymore.
Father: Thank you for saying. I like it better too.
Son: Maybe I could try moving in with you ...

You might consider taking your feelings about <sharing your feelings with your son> to Tribe, as an entry point.

May 8, 2015

Trading With Logic and Skill

Hi Ed,

thank you for spending some of your life time to check my material!

I feel overwhelmed at this point how to back test all of my trading with an algorithm.
There are components of my trading that I don't know how to put in an algorithm like for example: "Observed behavior of growth stocks in relation to the general stock market behavior" which gives me valuable indications of the general stock market strength. Another example is: "how is the market reacting to a change in conditions/news?" The change in conditions/news doesn't matter from my experience but its how the market is reacting to this event where I get valuable information.
For example there is super bullish news for Gold or Oil like a coming war and after a very feeble break out Gold/Oil are behaving very weak but still above its breakout level. That could be a very good short chance and my pure technical system would not see that as early as I could.

Another example is my observation: "The majority is always wrong at the turning points after a strong trend" so how can I put an observed myriad of negative Euro currency comments and near media hysteria about the imminent end of the currency after the 10 month long down move of the Euro into a pure technical system? Maybe my pure technical system would have stayed in the trade despite of clear hints from the media/masses which had strongly diminished the chances of a further continuation of trend.

In my case because of this additional available "hysteria" information there was a very high probabillity for going EUR/USD long directly after the failed technical lower low 12/13th. of April (with a stop in the system below) instead of waiting for a technical system that reacts maybe only after the currency pair is crossing the SMA50 for the first time since 10 month. So in this case one could get additional profit which I don't know how to back test.

My questions reveals either that I don't know what is possible with a pure technical trading system or that a part of my trading happens in a non back testable way (which maybe reveals more things about how I run my life...)

Thank you for helping me in this area.

Have a nice day!

Thank you for sharing your process.
May 8, 2015

Relating to Son

Dear Ed,

some months ago my son announces that he wants to move in with me. He says that he prefers the way I do things to his mother´s. I hear reproaches from her about his behaviour, being lazy, staying late at night playing PC and causing her a lot of distress. In fact, he sleeps most of the time, forgets most appointments, to get him out of bed in the morning is a fight... somehow very frequent teenager traits. I tell my ex-wife that I am willing to listen and to search for constructive solutions if she wants to talk about her troubles with our son and how she feels about it, but I am not willing to listen if someone attacks or badmouths my son. She prefers not to speak.

I consider that my son is just reacting to a surrounding where he experiences criticism and lack of acceptance. I wonder how he behaves when the system changes.

I rent a new apartment and buy the furniture, but my son hesitates for several weeks and stays with his mum. I don´t know how to proceed, since I don´t want to force him, but after I make a huge effort to have a nice place for him I feel frustrated and angry.

During a walk with him and his best friend I tell them that my son announced his resolution, but is not acting accordingly, and that creates me some problems. I ask them how they think that I should proceed. His friend says "your son needs a kick in the butt to move forward". I ask my son if he agrees. He does. I say "you are moving in with me on Sunday in spite of rain or meteorites". He does.

In the following few days I observe huge changes. My son assumes more and more responsibility, wakes up in the morning and stands up without problems, helps me with the house chores. I teach him how to cook and new songs, he teaches me about programming. I am really happy about this development. I observe how he behaves in a completely different way when the system surrounding him changes.

He mostly forgets to clean the toilet after using it. Each morning I tell him how happy I am to see his poo in the toilet, showing that he has a healthy bowel and reminding me that he is at home, and giving me a chance to teach him something about hygiene. We both laugh wholeheartedly about it. Every morning. Maybe he starts cleaning the toilet, and I have less to do. Or he does not, and we have a running gag to start the day. In both ways, I win.

I think that these developments would not have been possible without your help and the support of the Trading Tribe.

On the other side, I think that the departure of our son is a painful experience for my ex-wife. I feel sad about this and hope that we can develop an interaction which yields positive results for our children.

Best regards,

Thank you for sharing your process.

I notice:

1. Your unwillingness to listen to your wife - and her preference not to speak to you.

2. Your saying you don't want to force your son - and then your forcing him when his friend authorizes it.

3. Your son leaving messes in the toilet - and your making jokes about it rather than telling him your feelings.

You might consider taking you feelings about <controlling your son> and <revealing your feelings to your son> to Tribe as entry points.

Like Father

like son

May 8, 2015

Paul Tudor Jones on Explaining Things

Dear Ed,

Recently I come across a quote attributed to Paul Tudor Jones that you and the FAQ readers may enjoy. The last sentence about pain and gain is especially interesting:

"There are many more deep intellectuals in the business today. That, plus the explosion of information on the Internet, creates an illusion that there is an explanation for everything. Hence, the thinking goes, your primary task is to find that explanation.

As a result of this poor approach, technical analysis is at the bottom of the study list for many of the younger generation, particularly since the skill often requires them to close their eyes and trust price action. The pain of gain is just too overwhelming to bear." (Source:

I thank you for helping me live a better life.
Warm regards

Your student

Thank you for sending me the link to the list of quotes.
May 7, 2015

Aspires to Trading

Mr. Seykota,

Jack Schwager is a very close friend of my Uncle, [Name]. I have read his Market Wizard Series several times and greatly aspire to lead a career in trading. Your work in the industry is truly astounding. Thank you very much for your time.


Thank you for sharing your process and for acknowledging me and the work of the Trading Tribe.
May 7, 2015

Likes Whipsaw Song Wants a Workshop


Just saw the video of the Whipsaw Song, I loved it.

Reading your responses on the blog is very helpful, so I look forward to reading your book. When is your next workshop?

Thank you for acknowledging The Whipsaw Song.

I generally schedule Workshops when I perceive demand.

Including your request, I have about three inquiries for a Workshop at this point.

May 7, 2015

Geithner on Government Protecting the Economy


What a machine !

Thank you for sending me the clip.

I wonder how you feel about this.
May 7, 2015

Send in the Clones


This posting relates to the previous three of May 7 about relationships.

After my divorce I meet a woman which fascinates me. She is very attractive, young, cultivated, extraordinarily wealthy, classy. She has also divorced and has a child. We share several interests. During our first date, after about one hour, we have great sex in her car. I really like her and enjoy her company.

During our second date she mentions that she likes to have everything under control. She describes her relationship with her ex-husband (mistrust, cheating), with her son (she lies to him about her smoking habit on order not to hurt him), and how she runs her company.

When I ask her if their employees like her, she mentions "they respect me": She mentions feeling very lonely, not having an associate which she really can trust (in a company with some 500 employees...), and that loneliness is her main issue.

She starts crying. When I offer her to share her sadness with me, she sends me home. Lately, per messaging, I mention that "fear" impedes her to share her feelings. She asks me "what is the alternative?", and I say "Courage, but this time not alone". She answers "But this is how I got my life to function".

She has all the resources for a really wonderful life, and she is so unhappy that she visits a therapist!

Shortly after that, she calls me and tells me that she feels under pressure, and that she would like to dictate the rules in our relationship.

As I hang up, I realize that I AM DATING A BLOODY CLONE OF MY EX-WIFE. I start running away and am still on the road.

In the meantime, I meet this humble, kind, nice, adorable woman with a extraordinarily optimistic attitude in spite of an utter tragic story, who keeps on sharing her fears and her sorrow with me, which I want to protect.

Together, we work to create a home full of love and understanding and to share our lives with each other. I don´t know how it is going to work and have no expectancies. I observe how the relationship unfolds and experience and share my feelings in the ever-changing moment of now.


Thank you for sharing your process.

Method 1: (Control-Centric)

He: "Your fear impedes your sharing your feelings." (Analytical)
She: "So tell me an alternative." (Defensive challenge)
He: Courage - and not alone. (A plan to fix her, make her more perfect)
She: I like how I have it now. (Defensive resistance)

Method 2: (Intimacy-Centric)

He: "Thank you for telling me about feeling lonely."
She: "I really don't want to talk about my feelings right now."
He: "Thank you for telling me that, too."
She: "Actually, I think loneliness goes with my job."
He: "Yeah, I hear you on that."
She: "You know, you just can't trust anyone near the top."
He: "Hmmm ... I wonder how you cope with that."

Method 3: (Cyclo-Matic)

Dump Ms. Assertive Hot-Sex, medicating your feelings by calling her "wife clone" and go for a fuzzy-feely codependent relationship with someone who lets you protect and dominate her for a while before she develops a passive-aggressive counter attack.

Counter the counter attack by developing self-pity and then having justifiable affairs with Ms. A.

A Handy Reference Page

from the Passive-Aggressive Playbook


May 7, 2015

Your Fault or Mine

Dear Ed,

during an discussion with my fiancée, she says "You [maintain] that (this event happening) is my [fault]?".

Some days later I mention to my ex-wife that I feel worried about the communication style of our children, and she mentions "and you mean that it is my [fault]". These events let me wondering about the nature of "[fault]".

I understand "responsability","intention", "wickedness" and simmilary concepts, and also the feelings of "remorse" and "regret".

These last are somehow tricky, because they mostly refer to events in the past, which I by definition cannot change.

Hence, I wonder if they have a positive intention or are mostly dysfunctional.

I reckon that I have problems to conceptualize "[fault]". After thinking a lot about it, I still do not understand what this girls mean when they say "you mean that it is my fault"? When I ask them, they also cannot clearly say what they mean.

I associate "[fault]" with the intention to manipulate a person (to make him/her feel guilty) or in a larger, control centered system, to get people out of circulation by imprisioning or executing them. I wonder if "[fault]" does exist at all.

I would appreciate your ideas regarding "[fault]" and its role in TTP.

Best regards,

Thank you for raising this issue.

In the TTP model, we have nothing occurring in the non-existing past or future. We do have memories that operate in the present. We can, indeed, re-frame our memories, and change the way we respond to situations in the ever-evolving moment of now.

Fault, blame and guilt all belong in the causal dynamic model. You flip the switch and this "causes" the lamp to go on.

TTP employs the system dynamic model. You notice a whole system that contains the lamp, namely: the time of day, what you plan to do in the room, if you pay your power bill on time, if you have an automatic timer in the circuit, etc.
May 7, 2015

Do What Your Partner Wants

I feel glad that a reader asks you to to expand on the ways that doing "whatever your partner asks" may contribute to intimacy-centric relating.

I feel confused by your statement that "both persons, naturally, ask their partner to do things that benefit the partner more than themselves." I try to imagine examples of this.

If I say, "I feel hungry; would you please get me some food?", I wonder how that benefits my partner, other than providing the feeling of being of service.

If my partner says, "I don't want you to go out with your friends without me," I wonder how doing that benefits me. It seems more like endorsing codependency if I agree to do what they ask.

If your doctor suggests that you lose weight, that would seem to benefit you, but the doctor's role is not personal and you wouldn't lose weight for the doctor, at least I don't think that would be the reason.

So, obviously, I don't get it. I wonder if you might help me understand this principle.

Thank you for raising this issue.

Yes, the examples of the doctor and the FAQ contributor do not go into the deeper dynamics.

In practice, people tend to pick people with whom they feel "chemistry." In many cases this has a lot to do with seeing, in each other, an image of one or another problematic parent, and an opportunity to realize their childhood dream, namely: to change their defective parent into an ideal parent.

At first, after experiencing this chemistry, the partners work to please each other - and to make concessions. This reinforces, in each other, the fantasy that, finally, they have an opportunity to change their mate into the ideal partner.

Alas, as the relationship progresses, the parties grow weary of the pretense and drift back into their normal patterns, that happen to replicate, for each other, their fundamental childhood dynamics, replete with a full complement of K-Nots and Rocks.

In this way, both partners naturally and normally have a laser-like ability to locate each others' buttons and push them, all the way in - and then some.

In many cases, people conclude that the intimacy-centric model does not and cannot work with their spouse (see the item directly below) so they shut down, lead lives of quiet desperation and eventually seek solace through divorce - that typically leads to a replacement spouse with whom to continue the pattern.

In the TT Relationship Model, we accept the inevitability of attracting partners who "plug us in." We then consecrate this inevitability to personal growth.


Her: "Take out the trash, OK hon?"

Him: "OK. Right on it." (And then he conveniently "forgets" to do it.)

Her: "Ahem ... I notice the trash still needs to go out."

Him: (Rubbing his hands together) "I have to go down to the pub and meet up with a couple guys from work - kind of a business thing - see you later."

TT Relationship Model:

Her: "I feel weary and wonder if you can help me in the kitchen."

Him: "OK, I wonder how I can assist you."

Her: "Well, for starters, you can take out the trash."

Him: "I feel a little sick to my stomach and my hands itch."

Her: "I wonder if you can tell me more about that."

Him: "As I recall, my mom always has me take out the trash as punishment for not washing my hands. She makes me stick my hands in wet garbage and then says, 'so I guess you must really like your hands now - so now take your dirty hands out of here and go outside .'"

Her: "Wow! No wonder you don't like taking out the trash. I wonder how you might deal with her now."

Him: "Well, I might ask her to tell me her feelings about trash and about dirty hands and then discuss our feelings about it in an intimacy-centric way ... kind of how you and I do it."

Her: "Thank you for telling me about that." (Hugs) "I can take out the trash myself if you like."

Him: "Allow me. How about you go up to bed and I can finish tidying up the kitchen and take out the trash and then we can continue our discussion of all this in bed."

Her: (Giggling) "Hmmm ... I like your dirty hands, you bad boy."

May 7, 2015

Divorce, Willingness to Feel Fear and Setting Limits

Dear Chief,

I contemplate taking legal action to enforce the custody agreement I have with my ex-wife.

I feel a sinking feeling in my throat that feels linked to my abdomen. I notice a subtle twitching in my gut and a mild cramping sensation.

I notice memories or thoughts about anger directed at me by my ex wife. I feel pain between my eyes as I consider the image of an angry face and an aggressive tone of voice.​ I especially hear the word "you" and feel a sharp jabbing feeling in my ears.

I have thoughts of my daughter's reaction to her mother's interactions with me. I see my daughter's face shift from comfortable and happy to sad and unsure as her mother begins to speak to me.

I feel pain inside my eye sockets and at the back of my throat. I feel my brow furrow.

I acknowledge how I feel (to myself) and feel the feelings while I listen and focus on the feelings of what is being said along with the words.

I feel calm as I use the intimacy model and notice that it works with everyone but my ex wife.

I find that when I share my feelings it provokes aggressive responses. I ask her how she feels and notice that there is a lot of explaining and story telling along with angry sounds and gestures. When I acknowledge the feelings and words, they escalate into actual threats against me.

I thank her for sharing how she feels and that I appreciate that she has willingness to tell me.

I notice that I like to keep my end of agreements but that many times I dislike enforcing agreements when others don't keep their end of the deal with me. Remembering past instances of broken agreements, I notice that I prefer to avoid feelings of conflict instead of saying how I feel and standing up for myself.

Something has changed. I don't mind feeling afraid of the conflict and I have willingness to do what I can to establish boundaries and protect my best interests.

I contemplate protecting my rights and my daughter's and feel "sure" sure is a solid feeling of radiant heat emanating from my chest.

Thank you for receiving this.​

Thank you for sharing your process.
May 7, 2015

Trading Method

Hi Ed,

after reading your reply in FAQ a second time I see that I forgot to answer two questions.

- About position size: My position size is determined by my stop. From initiating a position to stop-loss I risk 1% equity. Stop loss is in the system after initiating the trade.

- Bull market vs. skill: My traded instruments and my biggest winnings during the last 12 month are giving a good hint that my results where independent from the bull market in stocks. My biggest winnings in 2014 where Euro short against US-Dollar and Russian Ruble short against USD because of the very strong trends.

My biggest winning trades in 2015 was again a Euro short position against the USD after new lows where made in the trend after the weak recovery end of February 2015; and NQ Futures long in February after the breakout to new highs from the flag formation in the Nasdaq100 chart. Because of a tight stop (clear breakout signal) I could take a good position there and risk only 1% equity.

Since mid April 2015 I'm now Euro long against USD after the chart was basing and not making lower lows around 15th. of April. I have EUR/USD market data from 1980 (currency basket before 2001) and with the exception of 1981 the Euro was never more far away from his moving averages than in April 2015.

This together with the failed lower lows and a myriad of analysts that where convinced that the Euro would further fall was giving the trade a good probability. (but nothing is for sure so my stop loss would have taken me out at -1%).

Thank you again for everyting you do and have a nice day Ed!

Thank you for sharing your process and your notions.

You might consider formalizing an algorithm that can replicate your results through back testing.
May 6, 2015

TT Relationship Principles (see above)

Dear Ed,


Thank you for adding the TT Relationship Principles link (TT Relationship Principles) to your website.

I feel a sense of unease as i read the last point on your list: "do whatever your partner asks you to do". I feel a strong sense of resistance towards it. I don't want others to force me into doing things. It does not sound like an intimacy-centric thing to do.

Could you please shed some light on how this relates to intimacy-centric relating?

Warm regards,

Your student.

Thank you for raising this issue.

Once you establish an intimacy-centric relationship, you can up the ante and agree to assist each other. This puts the relationship on the track toward mutual self-realization.

Both persons, naturally, ask their partner to do things that tend to benefit the partner more than themselves.

For example, my doctor tells me to lose some more weight; this drives me to consider what feelings prevent me from staying on a healthy food plan - and winds up helping me.

For another example, an FAQ contributor asks me to clarify a point about relationships; this motivates me to think more deeply about relationships - and maybe learn something and further develop this site.

You might consider taking your feelings about <people forcing you to do things> to Tribe.

A Good Friend
would help you move.

A really good friend
would help you move

a body.

May 6, 2015

More on Tribes for Families


I am short of regular Tribe members. Most members who come from FAQ directory, have to go through long commuting and show up few times then quit. Now I have two regular members, plus a new recruit, one can manage my process. My wife starts to help me in role play and I start to feel a lot more certain that I can keep tribe meeting going. Family is the essential Tribe, as you say.

I post on some mobile social group for local Chinese residents, and another group for parenting, on WeChat and share my experience of TTP. I get a lot response then I create a mobile social WeChat group for local TTP fans. I find that most of them are ladies. Some of them come to my meeting couple times, some come one time and most never come. Nobody stays as regular member but they all like TTP.

I feel glad I am able to create rapport with them and I tell them I welcome them come back anytime but I don't want to give them pressure. They like it and some come back occasionally. I realize I might be giving pressure to previous regular members by telling them I hope them to have longer term commitment. This is a big personal progress in me, to accept people the way they are, be delicate not to make them feel uncomfortable and maintain rapport.

These ladies help me to have enough quorum to run Rock Process role plays for the past few month. My regular tribe fellow friends and I have quite few good hot seats with their help. I am glad they all like the meeting and also get benefit from the meetings they attend. They need to take care children and feel hard to keep commitment of long hours meetings, usually to midnight.

I also create a Facebook group introducing TTP to local English speaking people, and I am still building it. And I find it's a huge resource. I post meeting notice each week and start to get interests. I get a new member who lives very close to me. He comes to my meeting last Friday and wants to come back.

I create another group introducing TTP and for two years, I get one member. She comes regularly and get the concepts very quick.

So I have about 4-5 regular members now and our next meeting is next Friday. Somehow I feel my FB group can help me find more local like-minded people. I feel confident about it.

Now I am thinking more about finding members in nearby local community. Some parents are interested in meeting mixing children and the parents. I feel uncertain what it can lead to for Rock Process, when the parents might role play themselves?


Thank you for sharing your process and for reporting on your extension of Tribe to include family members.

In general, Tribe members do not have much personal connection with each other outside of Tribe; they can flow in and out of roles without much attachment and they do not have an investment in manipulating each other.

Psychologists who work with family dynamics sometimes prefer to work with family members one-at-a-time to try to contain the risk of exciting family drama to the point it overwhelms the container.

I would like to hear more about your experiences as you proceed along this path.

May 5, 2015

9-Year Old Sings O Mio Babbino Caro

Ed, you might like to see this:
Thank you for sending me the link.
May 5, 2015

Wants To Establish Contacts

Dear Ed,

You never meet me but I was a Trading Tribe Berlin (Germany) member from 2010 to 2012 before I moved to the US and I'm reading your FAQ ever since I learnt about you from the market wizard book in 2007. I want to thank you for everything you did for me! You were and are a shining light for me in times when I was still trying to put the pieces together. With tribe I could overcome childhood drama that I did not know was existing that was corrupting and limiting me.

I hold a M.S. Mechanical Engineering degree and in my first career I work in a strategic managing automotive position [at firm]. In my second career I'm a trader with now 15 years market experience. I started with virtually nothing in 2001 and from 2004-2007 made huge winnings with stock trend trading in the markets but I still had to learn my lessons about risk management and my own limiting patterns in 2008.

My trading really took off after my Trading Tribe time and I have this clear picture that I want to trade fulltime because it's my true passion. You are part of the reason why my last 12 month cumulative return is 80.7% with a max drawdown of only 4.35%.

You wrote that when people want something they should openly ask for it. Ok so here I go: I want to be a trader in the hedge fund industry in the next few years. My question for you is if you can help me to establish contacts to serious hedge funds that would let me trade my own system. I don't have any contacts towards the trading industry and it would really help me if you can guide me towards the right people.

Thank you very much in advance and have a nice week!

Thank you for raising this issue and thank you for partially crediting Tribe work for your success.

Your record indicates large gains on a few large positions. Your materials do not specify how you implement risk control in case a position goes against you Your materials do not specify how you pick your instruments or size your positions.

You might consider running some back-tests to see if you can duplicate your results; this might help show how much of your trading follows systems and how much follows hunches.

This might help you show your customers the difference between a bull market and trading skill.

At this point, I do not have enough information about your trading to form much of an opinion.

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

May 5, 2015

Junior Trading Tribe


I am thinking of starting a Junior Trading Tribe. This Tribe are mostly children. Only one or two adult including me to get them start and on track. Then the children run their own Tribe, like a boy scout.

There are plenty of topics for role playing, how to handle peer pressure, how to deal with bully, how to say no to drugs, how to ask a girl out, how to communicate with a tiger mom, lots of things to do.

Since most parents don't want to change themselves, |-), we might give the juniors the opportunities initiate the transformations. Pretty soon we might find that the children are handling disagreement, more maturely, than some adults. |-)

I plan a 8 meeting session summer camp for free. There are 3 moms sign up now. I let you know how it turns out.

I send you a separate e-mail on how I market my local tribe.


P.S. I wonder how the parents feel if they find out the junior Tribe is fore-giving the family rocks they pass on to their children? Let's see how this turn out.

Thank you for sharing your process and your plans to start a Tribe for juniors.


May 5, 2015

Ferguson and Baltimore

Dear Ed,

A friend and I discuss recent events in Ferguson and Baltimore. I realize I feel confused as I search for a context that includes both but doesn't oversimplify.

I wonder, do the events differ because in one case the police are found to be blameless and in the other they are charged with murder? Do these episodes occur because of racism, or because of "income inequality" (the new buzzword), or because of poverty?

I remember reading in "Govopoly" that politicians look for "causes" of problems that really don't exist independently of the system we live in.

I wonder if you might share your understanding of what's really going on.

Thank you for raising this issue.

Extending, from my book, Govopoly in the 39-th Day:

The Govopoly System entices inner-city folks into lives of confusion and dependency. Women marry their welfare checks, consigning men to performing random acts of pollination at the periphery.

The hapless dependents occasionally punctuate their emasculation, degradation, and hopelessness by rebelling, impotently and self-destructively.

The media seizes these moments to fan the flames, re-frame cries of anguish as class warfare, anoint token heroes and villains and enable a grand spectacle.

The distraction invariably works - and also sets up justifications for additional intervention by the Govopoly System.

Govopoly: Monopoly by government sanction.

May 5, 2015

Taking it for Granite


I'm trying to figure out my dream. I dreamed about granite and concrete all night. Visiting a granite factory with my dancing buddy that I danced with last night. Me finding a secret that the granite hardens the power source that is supposed to stay flexible. I was afraid because I found the secret.

I know where granite and concrete come from. I'm thinking about visiting my friend on the lake. He lives in granite shoals. Most of his yard is granite. Then I saw an ad on TV for plastic surgery show where a lady said she injected concrete in her face

Sometimes in my dream the hard granite was like a shield or mask to keep me from getting hurt

This morning I thought what does the granite mean.

My heart felt like granite

Thank you for sharing your process.

You might consider meditating upon your existence as granite.

You might also consider taking your feelings about <granite> to Tribe as an entry point.
May 5, 2015

Wants to Attend a Tribe in Mumbai

Hi Ed,

I received the book a few days back and am halfway through reading it. Many thanks for writing the book.

I will be really grateful if you could introduce me to a few trading tribes in Mumbai. I would love to be part of one!

Look forward to hearing from you.

Best regards,

Thank you for raising this issue.

Occasionally, a Tribe posts a listing to the Tribe Directory at Resources, above.

If you don't see a Tribe near you, you may start your own.

The network of Tribes runs without any formal organization, such as you might find in a for-profit business.

Setting the Trading Tribe up as a for-profit business might, in my opinion, change its character. In particular it might provide subtle motivation for Tribe leaders to administer more medication and less accountability.

I do not wish to get into the business of pumping people up like balloons and then watching them fly around the room, emitting strange noises for a while.

Trading Tribe principles seem to work their way into the commercial psychiatric community, slowly, as formal practitioners come to embrace them and integrate them, responsibly, into their practices.
May 4, 2015

Market Dynamics

Dear Ed,

I am a novice trader and trying to develop a systematic momentum system that can be translated into trend following. What inspired me is your TT Chartbook that I follow for a couple of months. I like that you provide real time trades that I can follow unlike many other traders who give a complete chart with the patterns etc.

My view of the markets can be summarized as the old saying: "It takes a buy to move the price up, but it can fall under it's own weight".

Therefore, I was wondering whether it is important to have volume increase prior/during the uptrend to confirm a Trend and whether it is an indicator of outstanding stock, combined with strong price movement.

Also, is it important to have sector/industry support for a stock that shows the same patterns as the stocks in your TT chartbook (e.g. long-term trend, current chart pattern, picking a good spot to buy and sell).

Thank you very much,

P.S. I'd like to show you my strategy and get some feedback if it is possible.

Thank you for raising these issues.

Your view about "what it takes" invokes the causal model.

Trend traders generally discount all explanations for market movement and focus on the trend.

You might consider taking your feelings about <wanting to understand the markets> to Tribe as an entry point.

If you would like me to evaluate a specific system, you might like to see my terms for private consulting under Ground Rules, above.
May 4, 2015

More on Seeing Feelings

Dear Chief,

Thank you for your reply regarding glasses to detect forms.

I appreciate your observations. Your observation helps me to see the technology from a different perspective and brings up different feelings too.

I feel I am smiling at the corners of my eyes, that I like the warm feeling in my chest and breathing easily while I consider tools for monitoring and learning from forms.

Thank you.

Thank you for sharing your process.
May 4, 2015

Hello Dalai

Hi Ed,

I am grateful for your response and your major work on intimacy-centric relationships. I read it with great interest and it answers questions I have. I feel myself calm and breathing deeply at the end.

You write:

"I might mention that the intimacy-centric model does not and cannot spread by force or coercion. You cannot sell, coerce or legislate the intimacy-centric model. You cannot set up an intimacy-centric political party. The intimacy-centric model spreads best, perhaps only, by example."

This reminds me of the following quote:

Just as ripples spread out when a single pebble is dropped into water, the actions of individuals can have far-reaching effects. – Dalai Lama

Your work really is meaningful.

Thank you,

Thank you for sharing your process and for acknowledging the work of the Tribe.
May 4, 2015

Eliminating Emotion


I hear this a lot, mostly from people who backtested and started running a system within the past few years:

"Our systematic and rules based approach also allows us to eliminate the human emotional from the process".

What do you think?

Thank you for raising this issue.

I might hesitate to place funds with a manager who makes claims about eliminating his emotions from his trading - or, for that matter, eliminating any of his other body parts.

The desire to eliminate emotions may indicate a tendency toward judging feelings and emotional repression - and the probable existence of, in TTP parlance, lots of k-nots and rocks.

This might further indicate algorithmic bias toward medicating feelings and away from optimizing MAR.

Furthermore, systematic trading does not and can not eliminate emotions - it can only move their focus upstream, from the instrument level to the portfolio level; you might sweat less about the volatility of individual instruments as your clients start sweating more about your overall portfolio performance.

In Tribe, we work to acknowledge and celebrate our emotions and to include them in our lives and in our trading, proactively and constructively.

You might consider taking your feelings about <establishing rapport with your clients> to Tribe.

Get Me Out

I don't care if you think
you have all your feelings
out of your system.

For your emotion-free information
your emotion-free system
now shows a huge emotion-free
drawdown in my account
and I want out.

Out, I tell you, out.

Out, out out!

Out !!!

May 2, 2015

Boy Plunger

Dear Ed,

I enjoy reading these original newspaper articles about the Boy Plunger almost as much as I enjoy reading your & readers' recent FAQ entries.

Best to you,

Thank you for sending me the link to some early newspaper accounts of Jesse Livermore.
May 2, 2015

Sharing the Journey

Hi Ed,

Thank you so much for sharing your journey. It helps me feel, well, not alone, like someone very wise has gone on this journey before me. You are the wisest person I know. I am truly honoured to meet you in person. You help me make sense of this world.

I re-read your post and I laugh, I think of you, and I find your description really humourous:

"I discover my personal incompatibility with the political machine and, ......, thank my lucky stars and move away from direct participation in politics."

This tickles me. :)

I chuckle. I gain a sense of closure and relief. I beam a smile and I shed a tear, I think in laughter or in closure, I am not sure which. I shake my head and wonder what a peculiar world we live in.

I really appreciate you sharing your thoughts, your feelings and your journey. I feel somehow closer to you.

Not only do you lay out your philosophy and understanding of the world but ,you also relate to the past in the present tense providing a great example of SVO-p-b.
I think the sharing is great example to help us understand your process.

Thank you Ed,

Warm regards,

Thank you for acknowledging me and the work of the Tribe.

I also thank the readers of FAQ and the many members of the many Tribes for raising interesting issues and for helping to educate me.

May 2, 2015

Glasses that Read Emotions

Hi Chief,

I wonder how you feel when considering the proposed technology in this article (link below).

I feel myself inhale and hold my breath. I continue to inhale. I inhale smaller and smaller additional increments of air and then exhale slightly.

It trembles at the limit of how much I can inhale without fully exhaling.

I feel a tickle in my chest and a lifting sensation.

It alternates between discomfort at the limit of my capacity to breathe in and pleasure while letting some air out.

I think of this feeling as apprehension.

Microsoft won a patent for goggles that detect feelings of people near you

Thank you for raising this issue.

I notice the article describes a patent to detect forms. I do not see an actual functioning device yet. I don't have much of an emotional response to the patent at this point.

I wonder if the inventors might consider designing a model that enables people to monitor their own forms so as to learn more about their own dreams, desires - and blockages.
May 1, 2015

Reading List


How are you? I am very interested in trading and have greatly benefited from your insights (I bought and read your wonderful books "The Trading Tribe" and "Govopoly in the 39th Day"). On my side, I should say I am not a professional trader. So I wonder if you could suggest a reading list of books which could also be useful?

Thanks and have a nice weekend.

Thank you for raising this issue.

You might consider reading books on topics you enjoy, letting your feelings do the choosing.

In my case, I enjoy reading biographies in which people tell about their accomplishments and personal struggles. I also read books on programming, to stay somewhat current with the evolution of computer languages. I can also now read, to my amazement and delight, some elementary books in Spanish. I also enjoy reading older Mad Magazines, especially the ones that show William Gaines as the editor.

Mostly, I read letters to FAQ, such as yours - and then read more, in consulting search engines to try to get myself up to speed to post my replies.

May 1, 2015

Mexican Fisherman


I would like to pass along this story - that has me thinking.

- - - - -

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied, "only a little while." The American then asked why didn't he stay out longer and catch more fish? The Mexican said he had enough to support his family's immediate needs. The American then asked, "but what do you do with the rest of your time?"

The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siestas with my wife, Maria, stroll into the village each evening where I sip wine, and play guitar with my amigos. I have a full and busy life."

The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually New York City, where you will run your expanding enterprise."

The Mexican fisherman asked, "But, how long will this all take?"

To which the American replied, "15 – 20 years."

"But what then?" Asked the Mexican.

The American laughed and said, "That's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions!"

"Millions – then what?"

The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siestas with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."

Thank you for sharing this story.

I have to keep my response to this one short - gotta go fishing.
May 1, 2015

Enjoying Feelings

Dear Ed,

Thank you for your continued guidance. I live better now that I practice some of the arts I learn from you.

Recently I feel sad and depressed. I acknowledge my sadness and also of my awareness about the sadness. I honour my feelings by fully expriencing the gloom that engulfs me. The episode lasts about one evening and then other, more positive, feelings come to the fore and life goes on.

My question to you relates to the "enjoyment" of our feelings. I recall from Tribe meetings and the Reno workshop of 2009 that we encourage hotseats to "enjoy" their feelings. I do not understand what it means to enjoy a sad feeling. Do I "enjoy" a feeling if i acknowledge and fully experience it? Or do you mean something else?

I thank you for your help.

Warm regards,

Thank you for raising this issue.

Feelings naturally and organically help motivate our actions.

For example, thirst helps motivate hydration; hunger helps motivate ingestion; anger helps motivate boundary management; fear helps motivate risk control; sadness helps motivate loss control; etc.

A K-Not refers to the combination of a feeling and an associating judgment of that feeling - that ties it up in a "knot" and also informs you that you "should not" feel that way.

This may interfere with the natural workings of our feelings.

For example, if you have an anger k-not, you may notice yourself repressing your anger, suffering boundary violations and occasionally "blowing up for no reason."

In Tribe we work to identify and untie K-Nots through exercises to reduce our judgments about our feelings. One method involves encouraging the client to "enjoy" his feelings and to experience them as pure body sensations, without the thoughts and judgments that typically tag along.

A Rock refers to the combination of a feeling and a response pattern.

In Tribe we work to identify Rocks and to return them, with compassion, to our Rock Donors.

May 1, 2015

New Tribe Dynamics - Including Families


My local tribe has some new dynamics going on in recent month. One time I find myself running meeting with 3 local moms. Sometime we have 3 men and 3 ladies. Today one lady tells me she wants her son to join tomorrow's meeting. I ask her to make sure her son has his own willingness to come. She later tells me he wants to come. I find it out tomorrow. I feel glad we start to have kids in Tribe meetings. Sometimes my son joins Tribe meetings. We once role play saying no to drugs.

I work on myself and so far my Tribe has no codependency going on. People come and go and I stick to TTP principles. My Tribe is getting some local interests.


Thank you for sharing your process.

I wonder if you can elaborate on your methods for attracting families, women and children to Tribe - and if you notice any differences in managing the Tribe and in managing processes.
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