Hi fellow members,
I am starting this thread to document my trading journey to becoming one with fti's teaching. His thread may be found here: Link. In here, I seek your guidance to light the path forward and may I ask for your patience and passion in moving forward with me.
I would like to put words to my thoughts on the 3 stories contained in first subject i.e. Mindset.
1. Story of scorpion wanting to cross the river
Moral of the story: Self destructive nature of human being
Me: I am the average human being. Although I know eating a lot of oily and spicy food is no good to the stomach and health in one sitting, I do not heed the warnings and proceed. This is then to find myself sick and unhealthy. I knew from the beginning what would be the unwanted outcome. Yet, I did not do the preventable and regret only when the bad outcome hits me right in the face. Then, I promise myself if I could get well again, I shall never eat oily and spicy food. However, when I am well again and I see oily and spicy food, I break my promise and find myself in the vicious cycle unable to escape.
Solution: In order to prevent myself from succumbing to oily and spicy food, as a beginner's aid, I shall associate it with pain and suffering in my head such then I feel ill and disgusted at the sight of it.
Trading: Revenge trades and the act of not taking losses at 10% of account size shall be associated with images of pain and suffering, feeling of being burned alive, all internal organs spilling out.
2. Story of old man trapped on rooftop during a flood
Moral of the story: Hope
Me: I am the average human being. I hope for many good things to happen in my life and bad things to disappear. I go to work everyday hoping that my boss likes me, hope that my clients likes me, hope that I win lottery, hope that I can make a million bucks and not work anymore. When I am down and out, I hope the villains die a horrible death, hope that a higher power will help me. Such is hope, empty and futile. A thought in the head when not associated with logical action, translates to nothing in the physical world.
Solution: I do not hope, I do what is require of me. If hope enters the mind, I shall acknowledge its presence and stop what I am doing. Saying that is easy but hard to resist in the mind. Thus, as a beginner aid, negative image shall be associated when hope find its way into the head.
Trading: We often hope a loss turns back to a breakeven and when breakeven for it to turn a profit only to find it in loss again. We go through this cycle of loss and hope in a self destructive manner and in due time with a blown account. We know we should not hope, but we still hoped. However, we don't find ourself hoping for a position in profit to turn into a loss. If a position is half drowned in water and if analysis of the current bar shows no signs of turning at the moment and there is no more resources available for rescue later, the position will be immediately closed. If there is resistance in the head to close due to hope, it shall be associated with negative images such as being burnt alive as a beginner aid.
3. Story of an old and young monk
Moral of the story: Mind over matter, flexibility over rigidity
Me: I am an average human being. I live in a world when almost everything is governed by rules and regulations. As a child, parents dictated proper time to eat, sleep, play and study. Failing which, we will be punished. As an adult, the society dictated proper decorum, manners and mature actions. Failing which, we shall not be accorded proper respect as an adult, be isolated and be made a laughing stock which no ones want to associate with. In a more serious tone, failing which, there will be atrocities, sufferings and war. Why? This is because of the self destructive nature of human.
Solution: Rules are a guide, to pave the way when its not clear but the paved way is not the only path. Saying is easy, but when it hits the head, it is hard to resist the lure of the rule. I have no tangible solution at the moment.
Trading: Popular rules such as 50% support/resistance, double top indicating bear, double bottom indicating bull. In the same way, 37.5 Degree Celsius indicates a fever. 37.5 Degree Celsius from a man participating in strenuous activities under a hot sun is no fever. However, if we cannot ask this man, then we do not know. Fortunately, if we may observed his sweaty body in sport gears then we may have an educated guess. In the same light, we cannot ask the market and thus we do not know too. Thus, a double top may indicate a bear but we shall watch for clues - what clues then shall we watch for? This could be an art in itself.
Best Regards
Jacque
I am starting this thread to document my trading journey to becoming one with fti's teaching. His thread may be found here: Link. In here, I seek your guidance to light the path forward and may I ask for your patience and passion in moving forward with me.
I would like to put words to my thoughts on the 3 stories contained in first subject i.e. Mindset.
1. Story of scorpion wanting to cross the river
Moral of the story: Self destructive nature of human being
Me: I am the average human being. Although I know eating a lot of oily and spicy food is no good to the stomach and health in one sitting, I do not heed the warnings and proceed. This is then to find myself sick and unhealthy. I knew from the beginning what would be the unwanted outcome. Yet, I did not do the preventable and regret only when the bad outcome hits me right in the face. Then, I promise myself if I could get well again, I shall never eat oily and spicy food. However, when I am well again and I see oily and spicy food, I break my promise and find myself in the vicious cycle unable to escape.
Solution: In order to prevent myself from succumbing to oily and spicy food, as a beginner's aid, I shall associate it with pain and suffering in my head such then I feel ill and disgusted at the sight of it.
Trading: Revenge trades and the act of not taking losses at 10% of account size shall be associated with images of pain and suffering, feeling of being burned alive, all internal organs spilling out.
2. Story of old man trapped on rooftop during a flood
Moral of the story: Hope
Me: I am the average human being. I hope for many good things to happen in my life and bad things to disappear. I go to work everyday hoping that my boss likes me, hope that my clients likes me, hope that I win lottery, hope that I can make a million bucks and not work anymore. When I am down and out, I hope the villains die a horrible death, hope that a higher power will help me. Such is hope, empty and futile. A thought in the head when not associated with logical action, translates to nothing in the physical world.
Solution: I do not hope, I do what is require of me. If hope enters the mind, I shall acknowledge its presence and stop what I am doing. Saying that is easy but hard to resist in the mind. Thus, as a beginner aid, negative image shall be associated when hope find its way into the head.
Trading: We often hope a loss turns back to a breakeven and when breakeven for it to turn a profit only to find it in loss again. We go through this cycle of loss and hope in a self destructive manner and in due time with a blown account. We know we should not hope, but we still hoped. However, we don't find ourself hoping for a position in profit to turn into a loss. If a position is half drowned in water and if analysis of the current bar shows no signs of turning at the moment and there is no more resources available for rescue later, the position will be immediately closed. If there is resistance in the head to close due to hope, it shall be associated with negative images such as being burnt alive as a beginner aid.
3. Story of an old and young monk
Moral of the story: Mind over matter, flexibility over rigidity
Me: I am an average human being. I live in a world when almost everything is governed by rules and regulations. As a child, parents dictated proper time to eat, sleep, play and study. Failing which, we will be punished. As an adult, the society dictated proper decorum, manners and mature actions. Failing which, we shall not be accorded proper respect as an adult, be isolated and be made a laughing stock which no ones want to associate with. In a more serious tone, failing which, there will be atrocities, sufferings and war. Why? This is because of the self destructive nature of human.
Solution: Rules are a guide, to pave the way when its not clear but the paved way is not the only path. Saying is easy, but when it hits the head, it is hard to resist the lure of the rule. I have no tangible solution at the moment.
Trading: Popular rules such as 50% support/resistance, double top indicating bear, double bottom indicating bull. In the same way, 37.5 Degree Celsius indicates a fever. 37.5 Degree Celsius from a man participating in strenuous activities under a hot sun is no fever. However, if we cannot ask this man, then we do not know. Fortunately, if we may observed his sweaty body in sport gears then we may have an educated guess. In the same light, we cannot ask the market and thus we do not know too. Thus, a double top may indicate a bear but we shall watch for clues - what clues then shall we watch for? This could be an art in itself.
Best Regards
Jacque
THE ALL is MIND; The Universe is Mental