My Advice to Lukx

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My Advice to Lukx

Postby eudamonia » Sun Sep 26, 2010 7:47 pm

I'm posting this response to a PM from Lukx because I think it may help some other traders:

I am of course using a methodology. But the methodology isn't your problem. You don't need another method (drug fix). You need to master 1 method. The Rat is as good a method as any.

I use the Rat system too. But you aren't trading the Rat consistently or intelligently. You use the 4hr as your setup but then you enter before the 4hr tells you to enter. You add to losing positions. You fail to execute the system consistently. Most importantly you ignore who is on the other side of your trade, rushing into trades you shouldn't, and failing to take trades when the other side (red rats) are running scared.

But I think you know all this already. You need to be ready to accept being a winning trader. You know everything you need to know already. But you do not allow yourself to win. The conscious side of you thinks there is some secret you are missing. But there is no secret. You have everything inside of you to turn your trading around right now. It is your choice.

Since you are having trouble seeing this - this is my "holy grail" advice. When you are trading listen to some positive affirmations ? you can find some really good ones here (on the right hand side). You need to dedicate at least 2-3 hours of totally uninterrupted time to trading each day. You must not do anything else except watch the market, trade, and write down your observations. You may listen to affirmations or light ambient music (no vocals) while doing this. No phones, no internet surfing, no IM, no ? nothing else to distract you. Just you and the beauty that is the markets.

Your job during this time is to observe. This will help you SEE the market. Observe the green rats and the red rats. Who is in control? Who is playing games? Who is afraid and in pain? The market breathes in and out. Buyers buy and sellers sell. The breathing of the market will show you who is in control, who is afraid, etc. When you can SEE the emotions in the market it will become totally obvious when you must wait and when you must act. As you follow the system and take trades you will know when to take a couple of pips and when to ride the big wave. You will know when to get out (without emotion) of a small losing trade (often before it hits your stop). Although you have no control over the market, you have complete control over your actions. You use your bias (being a green rat or red rat), avoid getting stuck in large losing trades, and do your best to maximize winning trades (outliers), and this is your EDGE.

There is no fight - the market is like the ocean. You are the fisherman going out to on your little boat. You avoid the storms to find the best fishing spots. You are completely patient and have no expectations. When you do these things well (and your only objective is to trade well), then you will make more money than you know what to do with. Can you accept SUCCESS? Or can you not?
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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Postby TygerKrane » Mon Oct 04, 2010 4:25 pm

I, too, love this post.

Thanks Ed :smt058


**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

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