The Art of
What's the least you'll take for the book?
Maybe we can do a little horse trading. Here's my offer.
If you can answer the following question correctly in one word (or
less) I'll buy the book for $124.99.
If you can't answer it I get the book FREE and you have to pay me
$125.00 for reading it.
One word, Ed. And no consulting with the Global Brain aka Google.
Here's the question. "What is it that connects absolutely everything
from the microcosm to the macrocosm?"
Almost forgot, when you send me my FREE book don't forget to sign it.
With kind regards...
you for reaching out to me with your intriguing proposal.
First, I don't know to which book you refer, The Trading Tribe
or Govopoly in
the 39th Day.
Second, before I can do a little horse trading with you, I'd like you to
show me your little horse.
Third, you might consider taking your feelings about <wanting to control other people> to Tribe.
Just Horsing Around
I complain about the self serving nature of people, fancy myself as selfless, and
dwell on the unfairness of it. My teen kids are
pulling away and being divorced I am feeling gypped, and wanting
acknowledgment that I've been a solid dad and played the not so great
hand pretty well. I feel a little scared to let go, that
there is risk in them feeling abandoned and the whole thing is just
packed with uncertainty and fear of loss. My essential Tribe
is ceasing to be a Tribe and I feel alone and unrecognized for my
contribution. The silver lining is that the conversation with
the kids is pretty honest. As kids they are more honest with
how they feel than pretty much anyone I know including TT
people. But the truth can hurt and I'm having a tough go
transitioning gracefully, celebrating the truth and openness and
growth, and not feeling like their mother again walks away with the
bounty of my work. And I judge these feelings too, my own
feelings, as being kind of a pussy.
As for this forum, people asking trading questions and advice, or ball
washing you annoy the
s--t out of me. I want to take it to the Tribe
but one member - whose participation is required by the small size of
the group - won't commit to setting dates and replies to emails as he
pleases. 'Going with the flow' on this means surrendering to
his schedule and waiting for his answer. As you probably
guessed this too drives
me mental, and I resist.
I'm pretty frustrated; and eating too much with that idiotic notion
that one last food orgy will be followed by being 'good' with regard to
eating habits. And when I am in the one-size-up jeans mode I
get no attention from the ladies. When I am in the 'fit' mode
I get plenty, and then just turn them loose, blow them off.
Chubby='please notice me', fit = 'get lost'. Its
insane. I keep doing it.
Snapshots can change. Or maybe what we tell ourselves and the
Tribe we want is actually not what we really do want. For me I now recognize that some
of the stuff I thought I wanted is likely more what I thought I wanted
other people to see me as. And maybe this is
just part of the process. Thanks for listening.
you for sharing your feelings and your insights.
our last Tribe meeting at the old venue, we disband. I then invite the
members to the reformed Tribe at a new more central location.
I ask for commitment as follows
* Have read the book "The Trading Tribe"
* Have read the material on the TTP extensions.
* Commit to report all their hot seats to FAQ
* Show up reliably. If you /have/ to be somewhere else, OK. But not "a
better offer came up" or "I didn't feel like it".
Follow the full process including TTP extensions. At a minimum, be
prepared to follow the full process when standard hot seats fail.
Fully support others in the process ie vocal encouragement,
participation in brainstorming and in reenactments, and in moving the
Optional but welcome:
* Providing "snapshots" to the group of their desired end state.
6 People commit to the new tribe. One (#11) who I expect to join us
doesn't, saying he needs to look for a new job.
(#12) commits to attend the new Tribe but then pulls out shortly before
our meeting, saying "it's not for me". I recall that in his first
meeting working up to his hot seat, he suddenly says that he sees a hot
seat there but "it's not happening tonight", with hands out in a 'stop'
signal. We stop. I feel he does not have the intention and that he
intends to leave, or perhaps to stay and make limited progress.
One (#9) member is sick and cannot attend the first meeting.
feel nervous before out first meeting at the new location. I console
myself with the thought that even if the Tribe falls apart I give it my
best. I also feel <who am I to change this long-standing
obtain more drums and bring them along in a large suitcase. A
of the others, as they arrive, say they feel a bit nervous. Beforehand
a few of us meet in a bar nearby.
To me #7 seems very very
different, more alive, warmer. I feel great about this. I ask her about
it; she says "I have no problems! I just work on my trading".
makes a complete break with her past BF. "She shares a house with her
parents but does not get entangled with their many dramas. Her brother
asks to learn about trading. Previously he dismisses of her -
do you, a dumb girl, know?> (even though she has studied
abstract algebra etc).
Once everyone arrives - on time - we
do drumming and check in. The atmosphere feels nice and warm, brings to
mind the German word "gemutlichkeit".
I try a new exercise
based on the concept of Hamming Questions (questions to get the answer
to - "What are the most important issues in your life and why aren't
you working on them?"). This seems to work fairly well; some answers
are very surprising. We also do some more standard exercises.
Two of us report feeling 'hot'. and the group wants me to go first as I
My issue is that I (#3) feel somehow 'wrong' as a leader in almost any
context. I get thrust into leadership roles often but I feel out of place as a leader.
These feelings come up with the recent changes to our Tribe. Also they
come up when I start to get involved in activism following from my
At first other members remain unconvinced
that I have a real issue. Maybe I just have concerns about the dirty
game of politics, the attacks I can expect, the skeletons in my closet
that might come out. I share the worst of these skeletons with the
After some discussion, I state that I accept
character assassination happens in game of politics and I accept that
price. The problems comes from something more subtle and insidious. I
have the knowledge, I have the capacity, I have the arguments, I can
make good speeches, I can organize things, I have run voluntary and
commercial organizations. Yet I still feel someone illegitimate. During
my last Holotropic Breathwork session a few weeks ago a similar thing
> So I join my ancient tribe [during a
past life within the Breathwork] for the initiation ceremony - blood
and pain, ... 3 days alone in the jungle, a test of courage and
resourcefulness. I get through it all - it was not that hard - but I
still feel not quite like a man.
Finally we kick off the hot
seat and I quickly come to a scene in junior high school where a bully
is punching me in the head and so forth. A friend advises me: keep a
low profile, stay in the shadows, don't put yourself out there, be
cagey about what your views are, keep your cards close to your chest,
don't say anything that will cause offense. We re-enact this and it
feels like the same problem, and it feels like this is my current
We brainstorm more heartfelt solutions.
Sometimes you need to carefully weigh what you say, and to exercise
caution: a 5% solution. Overall you need to lead if you want to get
things done. I have complete legitimacy to do this, to help myself and
others. People want me to lead and to use my abilities. Part of this
may stem from being short and easily picked on as a child but this
reasoning no longer applies to my current situation. We re-enact and I
refuse the old rock and happily accept the new rock. I feel good and positive and
happy about this.
Thinking about the ancient Tribal scene I now feel thoroughly in place
as a an equal warrior and enjoy full participant in the ancient Tribe.
the discussion earlier I relate a situation on a private chat room
where I recently put up what seem to me reasonable arguments and get
howled down in a barrage of virtue signaling, signals of social
conformity etc etc <you are Hitler to even suggest such ideas
I quit the chat room after this happens.
Tribe members encourage me to re-enter the chat room and try again. I
do this the day after the hot seat and this time, when I share my
insights, people accept them with no drama.
Otherwise I feel
a comfortable legitimacy in many contexts, where I previously do not
miss it but I lack it. For example I find myself easily talking to
strangers I meet.
The other person who says
he has an issue no longer feels hot so we check out for the night.
People make comments about the process and how we can improve, and even
these feel very positive. People nod and think about the comments,
without seeming defensive.
I feel very happy with how the evening goes.
you for sharing your process and for documenting your meeting.
Wants to Know
i [name] is a trader from India, i use EMA crossover for
trading commodities and currency futures.
i also use ATR for stop loss ,is this a correct way of trend following
or i have to develop any other system for trend following.
please help me in this regard and also give some knowledge about trend
you for raising this issue.
I gather you wish to know the correct way of trend following.
I do not know the correct trading rules for you - any more that I might
know the correct way for you to conduct a marriage.
You can find trading techniques in books (such as: Trading Systems and
Methods by Perry Kaufman) - and you can verify and
optimize your system by coding it up and back testing it.
You might also consider taking your feelings about <wanting to
do things correctly> to Tribe as an entry point.
More On Where
the Market "Should" Go
Hi Ed !
Thank you for taking the time to share your opinions with me.
Yes, I do agree that fundamentals have their risk.
But you are absolutely right, The Trend is our friend and I should not
let these opinions override my trading.
I hope you have been having a great day,
you for sharing your process.
Piece of Jewelry
During my health problem, which finally last for several years, I am
not able to experience some feelings.
After I take medication following the recommendation of a psychiatrist
I experience a block to contact my <sadness>.
It feels horrible, like not being able to breath, like being
incarcerated and trying to reach for an object beyond your grasp.
I think about a girl and start scratching my ear. I find that it is
related to <sadness>. As I explore the form I start
FINALLY for the first time in three years I make contact with
It is thrilling and exhilarating, a beautiful, deep, sweetly bitter
feeling. To me, it is like finding
a piece of jewelry that I was missing for a long time.
in the day I feel calm and de-attached to several issues which worry me
in the last few days, extraordinarily present and, well, somehow
you for sharing your process.
Back to Stocks
I never got the 30m from [Name]. We were misled Its OK as I'm going
back to trading stocks what I love and am good at.
you for sharing your process.
Market "Should" Go
Hi Ed !
I hope you and the Tribe are well.
It has been a while since I've posted so I just wanted to share some
interesting data with the Tribe.
Simply put, the fundamentals of the S&P 500 are quickly
deteriorating yet we are still close to the 2015 highs !
on a year over year quarterly basis and TTM basis is down
and below average with 4Q 2015 contracting 20% year over year.
growth is also contracting on a quarterly Y/Y basis and
way below average on a TTM basis. Also, a article published by U.S.A
today talks about how 50% of the S&P 500 income is only from 6%
of S&P 500 companies.
After reading these data points, do you really think the market should be
at its current highs? (As of April 5th, 2016)
In conclusion, we can thank The Fed for this bubble and the following
trend that will result from it! (:
you for raising this issue.
Fundamental analysis assumes you can understand the intention of an
entire system from
information you can gather at one node.
It also assumes you can arrive at your conclusion before the market
It also has no inherent method for risk control.
By jumping in before the trend starts, you expose yourself to,
in this case, shorting into a bull run, running
low on cash and confidence, covering during a blowup capitulation by
your fellow bears and then watching the market collapse without you.
After that, you might experience PTSD (post-traumatic stress syndrome)
and other trauma; example: see Jesse Livermore.
By the way, if you want another bearish indicators, see the JPY / NZD
carry trade - that serves as a proxy for impending business activity.
Trend Traders follow the trend and ignore the theories and
stories and attending social and personal drama.
Trend Traders who observe risk control seem to survive - and,
prosper, even while making trades that differ from those that their
fundamentalist colleagues make.
wonder what specific plan you have for capitalizing your
perceptions - including how to enter and exit the trade - and how much
of your equity to risk on your idea - and what to do if you start out
with a whipsaw loss.
to Some Fundamentalists
this market "should" collapse.
My wife recently tells me 3 times that when I talk to my son and to
her, my tone is much nicer than before.
She feels much better.
I also notice my way of talking to my parents changes.
Position sizing matters...
Thank you again for sharing your wisdom!
you for sharing your process.
The T-Shirt I bought at your 2013 workshop finally fits. I wish you
Take care warm regards ...
you for sharing your photo and for your kind wishes.
I wonder if you and the readers of "FAQ" would find this as meaningful
as I do. It seems to support your teachings of finding "Right
Livelihood," and focusing on "The Essential Tribe."
- - - - -
Value love above all else.
Don't underestimate the power of love, because it's the key to
Dr. George Vaillant writes that there are two pillars of happiness:
"One is love. The other is finding a way of coping with life that does
not push love away."
"The 75 years and 20 million dollars expended on the Grant Study points
… to a straightforward five-word conclusion: 'Happiness is love. Full
stop,' " he says.
That's right, you heard it straight from the horse's mouth — love is
everything. A person can have all the luxuries in the world, but
without love, they mean very little.
you for sharing your insights.
First I think its amazing that a legend in the markets such as yourself
takes the time out to read, reply and help all of these people in
issues that go even beyond the markets.
I have recently moved to the US from the UK on my own with a few
dollars to my name. Both of my parents
are incarcerated and I have moved to try and avoid the same fate.
Trading is the only thing that has ever interested me, it is the only
thing i have ever been able to focus on. I am mesmerized by
geopolitical, fundamental and psychological effects on market prices. I
came to the US hoping
that somehow I would scrape by and eventually break into the hedge fund world
despite a lack of experience, lack of proper education and lack of
references (I managed to elbow into a prop firm in London for a few
months before I left but that is it).
While my dreams remain, the more I look into how to break into the industry
the more disheartened
and afraid I feel. I am worried that I am at
a point where if I don’t make it on my first attempt I will fall over the edge
and many days I must admit I wonder if it worth it at all. I am
together enough money to go to a cheap college to get
my BA to be able to offer something to a prospective employer. In a
perfect world I’d manage to get into an investment bank to learn the
operational aspect of the sell side and jump to a hedge fund and grow
However, knowing I am going to the
cheapest college I can find, I have severe doubts I
would get into a tier 1 bank, or a hedge fund, or a top proprietary
trading company, and my confidence
in myself is waning with each day. I am slowly doubting my entire move
to the US but I feel as if I have very
few options left to me otherwise. I am willing to work for
a wage that would only cover the cheapest
apartment’s bills just to be able to show my willingness
to outwork anyone else yet I have no
idea how I can ever prove this to the right person.
I am not sure what I am exactly asking for, but at this point I think I
am looking for some sort of direction, a ‘guiding hand’ if you will.
You have seen it all and have trained so many amazing traders, so I am
hoping I too could get a little advice, maybe some reassurance.
Thank you for taking the time out to read this.
you for sharing your process - and for acknowledging me and the work of
the Trading Tribe.
You might consider re-writing your piece, using positive optimistic
sentences to replace ones I indicate with bold text.
You might also consider taking your feelings about doing this
to Tribe as an entry point.
I am [Country]-based trader, wanted to join TT.
What I need to do further?
you for raising this issue.
You may join or start a Trading Tribe in your area. For more
information see Resources, above.
The TT (dis-) organization has one employee (me) who maintains this
blog and who occasionally hosts Workshops.
TT neither accepts, rejects or keeps track of members. Tribes appear
and disappear at the discretion of self-appointing Tribe leaders.
Tribe members may share their experiences through this (FAQ) forum.
TT does not assess fees or taxes and does not invent regulations or
rules to interfere with how people wish to run their own lives.
So far, neither major political party shows much interest in adopting
any of these principles as methods for governance.
I have a simple question regarding how to operate when making a
decision in the markets:
When you make a decision in the markets, how big a role do your
intuition and experience play, and how much is a pure mechanical
reaction following your trading system?
you for raising this issue.
Some traders implement automatic order generation, order entry and
Others run on a seat-of-the-pants method.
You might also note that a fully automatic system follows from the
trader's deep feelings that he wants to trade that way - while the
fully intuitive system has some systematic and consistent
Thus automatic and intuitive trading both contain elements of each
I didn't mean to send the previous email.
I have purchased the book and plan to send you a book report and
summary when I finish. I wonder if you prefer the report in SVO-p.
you for ordering The
Science of Trust by Gottman - and for wondering about my
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