WHAT DO YOU EXPECT FOR CHRISTMAS? 
In this Newsletter
- Trading Pschology
- More about Trade Signals
- Details of up coming courses
Trading Psychology
Recently I was having a conversation with a trading friend. She was saying how
frustrated she was at missing the market rally of the last few months, because of
her expectation the market would fall.
Some of you know that I live at a Buddhist Meditation Centre. Now the fact that I
said that will have some of you, probably most of you, forming ideas in your mind
about that. Be that positive, negative or indifferent, what is happening is your
mind is judging, labeling and forming expectations of what it must be like for me
or why I choose to live there.
One of the philosophies the centre teaches is to not judge anyone or anything,
or to expect anything to be other than what it is, but to accept and flow with what
is happening in the present. It’s not easy to do, experienced practitioners still
struggle on a daily basis.
There is a connection between spiritual philosophy and trend trading. Some 12
years ago I attended a seminar at The ATAA (the Australian Technical Analyst
Association) presented by the professional trader Peter Pontikis. (I think Peter
was President of the association at the time) At the end of his presentation
Peter said “God grant me the Serenity to Accept the things I cannot change, the
Courage to change the things I can, and the Wisdom to know the difference.” I
will come back to that in a moment.
My trading friend made the mistake of expecting an outcome. If you expect the
market to fall and it rises (or vice versa) your mind makes it hard to “switch” to
the reality of what is happening, to acknowledge that it is the opposite of what
you first thought. Having expectation “fixes” your thought process and makes it
hard to flow and be in the moment. I am sure you have all met people with fixed
minds that cannot possibly “see” another reality.
But what if you trained your mind not to expect?
Exactly what Peter was attempting to teach all those years ago. If you don’t
expect, then it is easier to trade and take the signal, when the market signaled
an upward move a few months ago (if you were using a bull market signal it was
quite clear) a “non expecting” and therefore non fixed mind would have followed
the move and started buying.
This mind set is essential for you to take your trades. To take action is easier
when you fully understand the methodology and probability of the system you
are trading. Most traders don’t know that probability. They rely on predictions
and tips from others that build expectation; expectation and trend trading don’t
go together very well, it results in frustration and blame when things don’t go the
way they thought.
However, if you take an honest look, what or who is to blame?
Going back again to Peters statement above…..if trading requires you to be
serene, courageous and wise, how does one achieve that? No trader “knows”
what will happen, but good traders know the probability of their method, that
enables them to buy when the method says buy and sell when the method
says sell. Like spiritual practices, you develop a level of faith in your method,
knowing that no system, be it trading or anything else, is perfect. However over
the medium to long term, the probability is (in the case of Buddhism thousands of
years) it works.
I wish you all a very accepting, and therefore happy and serene Christmas.
Peter.
Chart time.
Believe it not, in the present moment the reality is, the market continues to rise.
Signals: if you go to the signals page on the web site I have added some more
details, following discussions with clients, thank you all for the input.
Upcoming Courses
January Courses
In January I will be running two courses. From my feedback sheets I have determined the following is what people seem to be asking for...so here goes.
1/A follow up course from the two courses I taught in October and November
2/A new course teaching just one simple system, the Course Pyramid System, Versions 1 and 2 which are specifically designed for SMSF or just general trading and wealth building.
3/ Smaller class groups
DETAILS OF THE FOLLOW UP COURSE
It takes a while for most things to sink in doest it? I realise I tend to have a lot of content in my courses, perhaps too much for some, so I thought a review day was in order. On this follow up day we will review the lessons from the first course.
Review open and closed trades in both the systems, be that the Momentum System or the Course Pyramid System 1
Don't forget the very effective single position Course System 3 either, the one I taught in module one, we can spend some time reviewing that one as well.
It is not essential to pyramid, just an option for some. We can discuss the pitfalls and benefits of pyramiding also.
You will go away from this day with a more clear understanding of trend trading methodology, the pitfalls and advantages of the process.
DETAILS OF THE PYRAMID SYSTEM COURSE
Although I have taught this system in the first two courses, it has proved so popular that a lot of people will benefit from a review of it. I myself trade a version of this system.
This is a popular system for many as it allows the trader to trade the top 200 with good results.
I choose to trade the smaller cap stocks, but many traders don't feel comfortable outside the 200 or 300. Perhaps you are already holding stocks in those larger indexes, and are looking for a method to use in the future.
Whatever your situation, this is such a good method a second look wont hurt.
PRICES AND DETAILS:
THE FOLLOW UP COURSE
Saturday the 12th of January
Time 1pm to 5 pm . Afternoon tea provided
Cost $150
THE COURSE PYRAMID SYSTEM 1 and 2
Saturday 19th of January
Time 1pm to 5 pm . Afternoon tea provided
Cost $200
FOR THOSE THAT HAVE NOT ATTENDED A COURSE
Depending on numbers people that have not done a course with me I recommend they attend the Course Pyramid System day on he 19th.
However I recommend you have some trading experience, if you are in doubt as to this ring or email me.
As usual I will be donating to the Khedrubje Kadampa Meditation Centre. This is included in the course fee.
NOTE: The classes will be a lot smaller than the one I held in October at Wamberal. The course I taught in Wollongong was more effective for the students in my opinion, as it was around the third the size of the first course.
I want to spend more time with students so they have a complete understanding of the methods.
Hope everyone has an exceptional week in the chaotic lead up to christmass.
Peter
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