Back April 7, 2008

Release feelings of wanting

Continuation of discussion about The Sedona Method: Your Key to Lasting Happiness, Success, Peace and Emotional Well-Being

There’s more to the method, but the foregoing is the core component of it. Hale says that three core feelings that you need to practice releasing are:

1. The feeling of wanting to control someone or something (e.g. market direction);
2. The feeling of wanting security (e.g. avoiding losses);
3. The feeling of wanting approval (e.g. being unduly influenced by opinions).

Hale writes in his book about applications of the method to:

Wealth
Health
Relationships
Unwanted habits

Traders would be interested in using the method for eliminating unwanted habits (e.g. failing to stop losses, premature profit taking, etc.) as well as the general goal of wealth.

Hope this helps.

I’m taking a rest from writing articles for this blog until after the Easter-Spring School Break Holidays, namely April 7, 2008.


Copyright 2008 Raymond T. Lee. All rights reserved.
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Release method 2 and 3

Continuation of discussion about The Sedona Method: Your Key to Lasting Happiness, Success, Peace and Emotional Well-Being

2. Ask yourself if you’re willing to let that feeling stay. Any quick and short answer is correct.

3. Ask yourself if you’re willing to let that feeling go. Any quick and short answer is correct.

...continued tomorrow...

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Release method 1

...continued from yesterday...

One of those two students is Hale Dwoskin, author of The Sedona Method: Your Key to Lasting Happiness, Success, Peace and Emotional Well-Being

The theory behind the method is that people hold themselves back from their respective desired achievements and goals. Therefore, people need to release themselves from their own holdbacks. The way to release include three methods:

1. Pay attention to whatever you feel when you contemplate a desired achievement or goal. Notice what it feels like. Notice the details of that feeling. Dive into the experience of that feeling.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Lester's emotional rescue

Hyperventilating with the drop in the equities market? Heart palpitating with the gains in the gold market and the bond market? Try this.

The Sedona Method. It’s one of two branches spun off from the founder of an emotional release method that’s been studied by academics.

Lester Levenson was a sick man. His doctor told him that his days were numbered. He didn’t accept that. Instead, he went on a search for a solution. His day job before getting sick was working as a scientist. So he had an edge – he knew how to apply the scientific method in his search for health.

He found a solution. Not necessarily the one and only solution. But still, an elegantly simple way to health. He taught his method to a small number of people. Two of his students branched off and independently are making that method popular, with applications beyond health – to wealth, relationships, and other areas.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Range boundaries

...continued from yesterday...

The Turtle Traders calculated their stop loss prices using the Range, or more precisely, the Average True Range: Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders

...back next week...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Home on the range

...continued from yesterday...

Some traders exit a few minutes before the close and go home with profits when an unusually large Range appears: Short-Term Trading in the New Stock Market

...continued tomorrow...

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Hit and run ranges

...continued from yesterday...

Range size as an entry signal include entries after an unusually large range and after an unusually small range.

Some examples of entry signals based on Range size getting larger are included in Hit and Run Trading: The Short-Term Stock Traders' Bible, Updated and Hit and Run Trading II: Capturing Explosive Short-Term Moves in Stocks, Updated

An example of entry signals based on Range size getting smaller appears in Street Smarts: High Probability Short-Term Trading Strategies and also in The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Lone Range(r)

High Low

The Range has many uses in trading. Some traders use it as a reason for entering into a new trade. Some traders use it to take profits on an existing position. Other traders use it to exit a losing trade to stop further loss.

The Range is the mathematical difference between the High Price and the Low Price in any given time interval (whether an hour or a “day”).

A variation of the Range is the True Range. It’s a concept described by Welles Wilder in New Concepts in Technical Trading Systems

Welles went beyond using merely the High and Low price to calculate Range. He wanted to account for gaps, limit moves, and small high-low ranges. Therefore, he took the greatest of the following three calculations to measure “True” Range”

(a) The current High less the current Low.
(b) The absolute value of the current High less the previous Close.
(c) The absolute value of the current Low less the previous Close.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Kick ass prenupt

Continued discussion about Think BIG and Kick Ass in Business and Life

Chapter 9 is where Donald’s expertise really lies. He advises that everyone of all genders should, before marriage, get a prenuptial agreement. I’m not saying that Donald is of the “all gender” persuasion, merely that Donald has been in and out of marriages (just like Jesse Livermore) and is in contact frequently with other people going in and out of marriages so that he has high credibility on this topic.

Chapter 10 is another inspirational chapter in which the Reverend Donald preaches Thinking Big (and Kicking Ass). You just gotta read it! Better yet, just read the whole book cover to cover, including the testimonials at the end of the book, and Kick Ass before, during and after you trade.

...back next week...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Donald's momentum and focus

Continued discussion about Think BIG and Kick Ass in Business and Life

Chapter 7 is intersting. It’s about maintaining your success momentum. Donald’s advice for real estate entrepreneurs applies to traders. His advice is that when you start anything new, you have no momentum. You do not seem to be getting anywhere, but if you keep at it and keep working toward your goals one day at a time, pretty soon you get into the flow of people and events. Then things get much easier. For traders that means get started papertrading whatever system you want to use; keep revising your system during papertrading until you get it right; then start using real money and pretty soon you get into the flow where you can take bigger and bigger positions until you’re Thinking Big and Kicking Ass, just like the Donald does in real estate and entertainment!

Chapter 8 is an extension of Chapter 7. Donald says you have to maintain your focus on your main goals and avoid distractions that lead to a life of regret. For traders, this means continuing to do what resulted in success even during winning streaks.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Guts, luck, fear & revenge

Continued discussion about Think BIG and Kick Ass in Business and Life

Chapter 3 is advice that mechanical systematic traders would want to avoid, although it might apply to discretionary traders. Here, Donald advises to go with your gut instincts and act on them. For mechanical systematic traders, that would lead to unplanned impulsive trades.

Chapter 4 is about creating luck. In summary: the harder you work the luckier you’ll get. Donald and Bill both have interesting stories about how this advice is applied.

Chapter 5 is entitled “Fear Factor”. The best advice in this chapter was “get the best people and do not trust them”. For traders that means getting the best trading platform and maintaining vigilance over it. Complacency could result in something as mundane as the electricity getting disconnected on your computer.

Chapter 6 is entitled “Revenge”. Donald and Bill advises to keep a list of enemies. For traders, that could means writing (and posting on the internet) reviews about brokers who screw up your account.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
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Think big

I know many people who finance a leisurely lifestyle through trading. One of them is a friend whose lifestyle I greatly admire. He lives in Hawaii and frequently travels all over the Milky Way Galaxy! Best of all, he finances his lifestyle by trading stocks. When we last talked, he gave a favorable mention to Donald Trump’s recent book Think BIG and Kick Ass in Business and Life

Coincidentally, a few days prior, I had picked up a copy of the book at my local public library but had not yet started reading it. I was planning to fit it into my leisure time activity. But since my ultra-successful trader friend gave a favorable mention to that book, I rescheduled it into my trading time budget and am almost finished reading it. This week’s series of articles will be about that book by “the Donald”. It’s been fascinating so far.

The co-author, Bill Zanker, is president of The Learning Annex. At the end of each chapter, Bill describes how he has applied Donald’s advice contained in that chapter. Bill credits Donald with encouraging him to Think Big and Kick Ass, transforming his company from a one-man operation into a multi-million soon-to-be multi-billion dollar enterprise.

Chapter 1 contains a questionnaire to “test” how close you are to being someone who Thinks Big and Kicks Ass! It’s entertaining albeit neither valid nor reliable in the scientific sense.

Chapter 2 applies to traders. Donald’s advice is to find a career you are passionate about. Passion will enable you to overcome obstacles (losing streaks), recover from setbacks (losing more than half your equity) and make it through the tough times (getting a net profit after surviving a string of losing trades). This chapter was inspiring.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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