Phantom Of the Pits (POP): It all comes from the respect given to me in the pits. In fact, this is part of the reason I want to pay a debt to other traders.
Phantom's Book
By Art Simpson
Rule Number 1
However, your exit is a better exit than if you let the market tell you the position was wrong. If you remove your position only because the market proves you wrong, you are recognizing that trading is a winning game.
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.) Positions established must be reduced
A person's thinking when the market proves that a trade is bad is contrary to what is productive. The statement now is to accept your position is wrong until the market proves what you are positioned is correct.
Phantom's Gift
Rule Number 2
Press your winners correctly without exception
Trading with Rules 1 and 2
The time to exit a position is not when the market is proving your position correct. If the market does not prove this a good trade, you will exit the trade.
Day-Trading
POP: There are advantages to day trading, but not many because restrictions come into play. Look at the other side and assume that a day trading criterion is not working and expect it to be wrong.
Options
Since we'll assume we're wrong until the odds are proven right, we'll initially set up a fairly protected position. Let's say a bull market has started as we can see from our benchmark platform. We limited our potential loss at this point to the charge we paid.
We used Rule 1, so we are somewhat protected from time decay because we don't have as big a position as we could have with an outright call. In our example you are not risking more than 3 at any time and you are long on a call of 1000 and short on a call of 1010 (bull spread). Let's say our criterion for being correct is that the market moves at least 15 points. We made somewhere between 11 and 21 (depending on where the butterfly is offset) on the trade. We made the 11 based on the sales of the 1010 call and somewhere between 0 and 10 depending on where the butterfly is offset.
Cloud Hopping
The main problem with the reliable plans is that Rules 1 and 2 are not part of the plan, and the traders can never trade in the long run. The trading plan may have what they call money management, but that is always a weak point in the plan. I guarantee that in the future there will be people who will look at what I've been doing lately and say it's time to let the computers earn their keep.
The teacher told each of the students to have their parents come to the PTA meeting. If they don't work long-term, you're either not using the right system, or you're not using my two rules in particular. This knowledge should not only be the benchmark for trading, but also the correct method of changing your behavior to what is needed for long-term success.
Behavior Modification
POP: (Smiles) I think their behavior will change, but that's another example. Now we had our behavioral adjustment, but was it the right behavioral adjustment for the potential traders? A trader must learn from research what the correct behavioral change is in all possible situations.
You can most likely see my reason for stating that knowledge and behavior modification are necessary for successful trading. Are there people in the field of behavior modification that you find impressive? Behavior modification learned from knowledge is what they must research in their trading career if they expect to succeed.
A Wink is as Good As a Nod To a Blind Horse
Any gamer who has never played this game would be shy and say that it seems a bit far-fetched. You wanted to replace all your cards except the ones you were trying to get eight of a kind. I'm sure a lot of people remember the game and would love to get a game or two.
IF: Put your photo on the cards and call them the “Phantom of the Pits” game. Motivational speakers have a place and it is important to be motivated, but most who follow forget one of the most important truths: you are the one who motivates yourself. That does not mean that this would be true in all cases of classmates.
Quicker Than the Eye
If your position brings emotion into the picture, it's usually wrong or in the wrong way. ALS: Do you think it's easier to get the wrong position than the right position? My answer is that it's because it's your only chance to keep the draw low if you turn out to be incorrect with the position.
This is the first assumption you must make, as it is true that you will be more sensitive to the person's comments that contradict your position. You use the warmth of the news to your advantage, even if you don't like the fact that it conflicts with your current position. This is the exact opposite of most people's understanding of what is required in trading rules.
Your Comeback After a Big Drawdown
ALS: Me, the readers, and the marketers understand where you're coming from and the importance of going it alone. I know you are giving us your heart in trying to show your true appreciation for what you have been given. It's just that you've been given a different perspective on life, events and reactions to events that put you where you are.
You have been given a gift and you are the first to accept that you have no right to take any credit for what you have been given. You may see the line a little more clearly; as you said, you are an observer and you see a line in the sand. You are a beacon of light for future, current, experienced and novice traders, not just in the US.
Alfredo's posting
Is the Market Always Correct?
Now, you are telling me that the market is accurate at the close in thin markets at all times. How can you say the market is accurate when there are no buyers willing to buy. Now, should we believe that close to tomorrow's market open is always correct.
You would never think of this side of trading if you only saw that the market is always right. Which day do you want to choose as the one when the market is correct. Art, let's go back to the traders to tell us if the market is always right.
Is the Market Always Correct?
Rule 3, You Say?
The first arrow pointed to the top of the page and the second pointed to the right of the first arrow. One pointed to the top of the page and the other to the left of the first arrow. In our maze you have to design a system that guarantees that you indeed reach the finish of the maze.
You don't know which way to turn to get to the goal every time. The goal of trading is to get to the point of least loss in the journey. I want to turn to the right whenever I can to systematically get to my goal without unnecessary steps.
The Third Rule
The Third Rule
We shall go against the majority and assume the market is not always correct (those times being when liquidity is poor). At those times we shall question all signals and wait for future signals for
We shall use the converse of poor liquidity and remove our existing positions when extreme liquidity takes place in two steps and within three days of extreme high volume. Half of our postion shall be
Tie Ribbons on Your Trading
You don't want to follow the market if you can prevent yourself from doing so. If the market is up, what do you think their position is most likely to be. You still acknowledge that you warrant that you are full and marketable on all signals.
There are times when the market has not given you enough height to recover. At other times, you have enough height on your position to make a good landing choice when the market goes wrong. Traders are in the only profession I know where they are happy when the market gives them back half of their losses.
Art Simpson
H.'s comments
It is easier to look greed and fear in the face with the right frame of mind. It's his business when you have a big loss because he's going to see it in your face. It is the same on a lower open that closes higher than the open; then it's the surprise side.
It is equally important not to make mistakes about good holes in open space. It finds a lack of continuation and will reverse the trend at some point. It's good to have a system you can rely on, but you also need to complete the overall trading plan.
Phantom's Journey
Phantom's Christmas Gift
It was Christmas Eve in 1979 and two men had just finished their work shifts on a United States. It was Christmas Eve and getting late for the kids, but they were allowed to stay up late on this special night. The two men had to be back at the ship soon, as it was due to leave at 3:00 am.
He would see many years later that it was one of the best TRADES he would ever make. It was cold so my sister and I sat closest to the stove to warm up. 34;I began to lose faith that it was God and Jesus who brought us food.
By Harold B. Simpson
The service was to be at 2 p.m., and it was to be held at the music tent in Aspen. How ironic, standing by this plane in this airport and looking at that mountain on this day. 18, 1997, was to be a final farewell from his family and friends in the setting that John would have been most.
Their spouses realized how important it was for them to be there and were understanding enough to let them travel together. I know that John's ashes were to be released over the Aspen Mountains on this day. John then said that the astrologer told him that this year and this time in his life is so important and that he has an opportunity to be in the world like never before.
Phantom of the Pits
