[TheNegotiator]

A little book I picked up recently for a casual read presented me with a potential nugget for any aspiring trader. It mentions a 4 key principles for life, as put by a 17th Century Japanese Samurai. The Samurai is (I gathered) Miyamoto Musashi. The principles are:-

No Fear
No Surprise
No Hesitation
No Doubt

With all the psycho-analysis of traders these days, I thought that these principles are excellent and far more apt to the trading than much else out there. Of course it has to be taken with the context of ability, but I believe this is a great way in which to practise trading.

[Tams]

Four Key Principles for Trading?


the trend is your friend
do not disagree with your friend
do not argue with your friend
do not make enemy with your friend

[SIUYA]

Originally Posted by Tams »

Four Key Principles for Trading?


the trend is your friend
do not disagree with your friend
do not argue with your friend
do not make enemy with your friend

so is that a combination.....

No Fear --- have no fear of the trend (your friend)
No Surprise ---- dont be surprised when the trend continues (dont disagree with him)
No Hesitation ---- have no hesitation of trading with the trend (dont argue with him)
No Doubt --- there is no doubt that the trend will end at some stage, until then repeat.....until your friend becomes a new friend

[TheNegotiator]

Originally Posted by Tams »

Four Key Principles for Trading?


the trend is your friend
do not disagree with your friend
do not argue with your friend
do not make enemy with your friend

Certainly an interesting point although I would add it might apply more to some products than other-but that is a different topic

[Tams]

Originally Posted by siuya »

so is that a combination.....

No fear --- have no fear of the trend (your friend)
no surprise ---- dont be surprised when the trend continues (dont disagree with him)
no hesitation ---- have no hesitation of trading with the trend (dont argue with him)
no doubt --- there is no doubt that the trend will end at some stage, until then repeat.....until your friend becomes a new friend

* * * * * g-o-l-d-e-n ! * * * * *

[zdo]

Originally Posted by TheNegotiator »

No Fear
No Surprise
No Hesitation
No Doubt

TheNegotiator,

These are all ‘effortless high performance worker’ traits… yet I meet so many good traders who tolerate no talk of parallels of physical skills and athletics with trading … we even have a few on this board. What’s up with that ???

re: “…I believe this is a great way in which to practise trading.” What do you mean by ‘practice’ trading?
Training to literally not experience those four is quite different from training to cope with them when they come up. Which way are you talking about?

Also, negoc8r, I’ve not seen ANY psycho-analysis on this board. Can you explain for me or give an example of what you mean by “psycho-analysis of traders these days”

Many thanks.

I bring these questions because -

The only truly effective and for sure consistent, way I have found to allay Fear is with proper sizing for my capitalization (in both excursion (/trend) and reversion methods, btw). I;ve found that all the mental trickery temptations that would keep me within 'tolerable' levels of Fear damage my bottom line too much.

I have not alleviated Surprise at all and as long as I’m still initiating any ‘leader’ trades (which about 20% of my trades are) I don’t see my ‘surprises’ ever going away. I don’t see my ‘surprises’ ever going away for the ~80% of the following / reacting / responding to market circumstances trades either. Also, for some methods, I consciously and unconsciously ‘project’ two or three possible maps for a time period and am continually Surprised that none of them were accurate, etc…

I can see where No Hesitation is definitely apt to Samurai level sword fighting, but quite often, Hesitation puts me into a better position than I would have had I slashed on in to the position…a related example - for certain situations in tennis, they teach you to commit and ‘make a move’ one way or the other… yet in those same situations often the appropriate ‘move’ is to Hesitate / ‘hold the center’ and force the onus of precision onto the opponent, etc.

Experiencing palatable Doubt during ~ 30% of my trades has not kept me from surviving and thriving in this game... were the samuria dealing with morphic emotional fields of crowds? etc.

[TheNegotiator]

zdo,

By "practise trading" I mean the continual practise of trading. Not simulated trading.

The psycho-analysis of traders is now an industry in itself, I think you'll recognise.

No Fear
No Surprise
No Hesitation
No Doubt

Of course all of these things should be contextually applied. Simply being a fearless, unsurprised, non-hesitant and strong self belief trader will take you down only one road should you have no clue about trading.

But if you have a clue, a plan and are experienced, these are important ideas.

No Fear- No fear that your well prepared plans are strong possibilities for the market to explore.

No Surprise- As when a scenario comes along that you didn't expect, there were probably clues along the way(this is why hindsight trading is so lame)

No Hesitation- When you have your plan, you trade it knowing you could be right or you could be wrong but you have to trade it to see.

No Doubt- That your plan is a possibility for the market and given the possible rewards, the risk is worth taking.


Anyway, I think it's a good approach for execution and can help curb those mischievous emotions' tendencies.

[zdo]

.. again, Training to literally not experience those four is quite different from training to cope with them when they come up. Which way are you talking about?

... also, would you please refer me to a psycho-analyst in the industry?

... not being critical... and if you just want to keep the topic casual just don't reply ... I'll understand.