On vacation in August 2009

I had scheduled myself to take the month of August off for vacation. So instead of starting another series of articles, I'm going to get an early start on my August vacation. I'll be back in September 2009.

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Prerequisite to Think & Grow Rich

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".


Chapter Fifteen: Six Ghosts of Fear

TARP says you need to releive yourself of the six ghosts of fear before you can effectively use the method described in it to Think and Grow Rich. The six ghosts of fear are faer of poverty, fear of criticism, fear of ill health, fear of loss of love, fear of old age and fear of death.

Applying this to trading, you might try using a release technique not mentioned in TARP, namely the
Sedona Method.

(If the link to the Sedona Method doesn't work, go to my Home Page mentioned below and click "Stress" on the menu at the left side of the page).

...back next week...

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Imagine/think and grow rich

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chpater Fourteen: The Sixth Sense

Napoleon Hill says in TARP that he had used an MasterMind Group comprised of imaginary people, all experts in their field, and who are now deceased. He said he found the group was helpful to him.

Applying this to trading, you might try conscripting an imaginary MasterMind Group comprised of successful traders. Ask them for advice and act on their advice. That’s far less expensive than hiring a trading guru.


...cont'd tomorrow...

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Bidirectional brain

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Thirteen: The Brain

TARP says that your brain can both send out thoughts and receive thoughts. TARP describes the brainstorming process. That is, gather three or more people together from your MasterMind Group. Sit at a table. Clearly identify the issue to be discussed. Then start discussing it harmoniously. TARP says the group will soon arrive at a solution to the issue that none of the MasterMind Group members knew about at the beginning of the process.

Applying this to trading, you might try meeting in person or on the phone with your MasterMind Group. Clearly identify an issue you are having with trading. Start discussing it and, voila, you’ll get a solution to the issue you didn’t have before.


...cont'd tomorrow...

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More emotional trading

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Twelve: The Subconscious Mind

TAGR says that thoughts combined with certain emotions result in the Subconscious Mind delivering to you answers about actions you need to take to bring about that which you desire. The emotions that are effective for that include sex (as discussed in yesterday's blog article), desire, faith, love, romance, enthusiasm, and hope. Emotions which disable you from receiving guidance from the Subconscious Mind include fear, jealousy, hatred, revenge, greed, superstition, and anger.

Applying this to trading, you need to monitor your emotions throughout the day so that you avoid the disabling emotions and that you deliberately cause yourself to feel the enabling ones (i.e. desire, faith, sex, love, romance, entusiasm and hope) during the times that you are thinking about trading successfully.


...cont'd tomorrow...

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The Horny Trading Method

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Eleven: Sex Transmutation

TAGR says that Sex Transmutation is the act of switching the mind from thoughts of sex to thoughts of something else. Thoughts of sex has a role in tapping into creative imagination. First, use thoughts of sex to stimulate the mind. Second, concentrate on the known factors of that which you wish to invent plus the finished product. Third, dismiss your thoughts leaving a blank mind and wait for an answer to flash into your mind.

Applying this to trading, you would (1) think about sex until you are horny; (2) switch your thoughts to concentrating on winning at trading; and (3) clear all thoughts from your mind and wait an answer to flash into your mind as to how you should win at trading.

...cont'd tomorrow...

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Master mind your way to wealth

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Ten: Power of the Master Mind

TAGR advises you to work with people who can and will help you achieve your goal of attaining wealth.

Applying this to trading, it means all the people with whom you have to interact in order to trade successfully including but not limited to a broker and techicians for any equipment you will use such as a computer. Furthermore, a trading coach or mentor would be beneficial.


...cont'd next week...

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Persistently Think & Grow Rich

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Nine: Persistence

TAGR lists four steps to developing the persistence you need to keep on keeping on after repeated failures.

First, keep in mind your definite purpose and focus on it in a way that gives you a burning desire for attaining it.

Second, have a definite plan that you continuously act on.

Third, stay away from people who criticize you.

Fourth, hang out with people who do encourage you.

Applied to trading, this means daily mentally imagining having already attained your goal. Second, read your trading plan daily and act on it. Third, stay away from people who criticize you. Fourth, hang out with people who encourage you.

...cont'd tomorrow...

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Keep your thoughts to yourself and grow rich

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Eight: Decision

Napoleon Hill, author of TAGR, observed that people who accumulate large amounts of money make decisions promptly and are very slow in changing those decisions. That's in contrast to people who make decisions slowly and quickly changing them.

Also, the people who accumulate large amounts of money usually keep their mouths shut about what it is they intend to do, at least until after they have finished doing it.

Furthermore, they do not accept the opinions of other people (except those in their Mastermind Group).

Applying this to trading means you must promptly execute your trades according to your trading plan and not change such plans until after a reasonable fair trial (e.g. after 30 or emore trades).

Also, it means you must not tell anyone your opinion about the market or what your trading plan is (at least not until you're done with the market or your trading plan).

Furthermore, you must ignore other people’s opinions about the markets (except for your Mastermind Group).


...cont'd tomorrow...

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Planning to Think & Grow Rich

cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised
hereinafter called "TAGR".

Chapter Seven: Organized Planning

TAGR says that in building a plan, decide on what kind of people you need to involve in your plan as well as identify what benefits you can give to the other people so that your participation is appreciated. Then meet with your group at least twice weekly to jointly plan how to get rich. After your group has created a plan, put it into action. If the plan does not work, revise it and act on the revised plan. Keep revising and acting on the revised plan until you get rich.

Applying that to trading, I would seek out a successful trader with whom I feel comfortable working. Then I would draft a trading plan involving input from such successful trader and implement the plan. If the plan doesn’t work after a reasonable number of trades (i.e. need 30 or more trades to be statistically significant), then I would revise the trading plan and try it out on another reasonable number of trades. I would keep revising and acting on the revised plan until I get rich from trading !!!

...cont'd tomorrow...

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Imagination in TAGR

cont'd discussion about Think and Grow Rich!: The Original Version, Restored and Revised, hereinafter called "TAGR".

Chapter Six: Imagination

TAGR advises to write out a plan for making money. The plan will be created through the use of imagination, both synthetic imagination and creative imagination.

Synthetic Imagination is the combining of existing ideas into seemingly new ideas.

Creative Imagination is where one gets new ideas not based on anyone else’s ideas and not based on previous ideas one has had. This Creative Imagination works when it is stimulated by a strong emotion such as a burning desire.

Applying this to trading, I would use my imagination to create trading systems and methods. Such systems and methods might be based on published work of other traders, or they might be my own original ideas. I would carry around with me a notepad to capture any ideas coming to me through either synthetic imagination or creative imagination that I can use in my trading plan.


...cont'd tomorrow...

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Know this

...cont'd discussion about
Think and Grow Rich!: The Original Version, Restored and Revised, herein referred to as "TAGR".

Chapter Five: Specialized Knowledge

TAGR in this chapter advises that “you will require specialized knowledge of the service, merchandise or profession which you intend to offer in return for fortune.” Furthermore, knowledge is only potential power and that “it becomes power only when, and if, it is organized into a definite plan of action and directed to a definite end.”

Applied to trading, this means you need to schedule time for learning about trading and you need to organize what you learned into a trading plan.

...back next week...

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Keep a lookout for inspiring plans

cont'd discussion about Think and Grow Rich!: The Original Version, Restored and Revised, hereinafter referred to as "TAGR".

Chapter Four: Auto-suggestion

TAGR gives further instructions in this chapter on what you need to do when you imagine having that which you desire. In particular, you need to imagine yourself carrying out the steps related to getting that which you desire.

Furthermore, TAGR says to be alert for thoughts of plans entering your mind as to how to get that which you desire, and that when such plans enter your thoughts to act upon them immediately.

Here’s how I would apply this to trading. I would prepare a script to use in the twice-daily sessions of imagining already having the result of successful trading. Furthermore, I would carry around with me a pen and notepaper on which to capture thoughts of plans for successful trading. Then as soon as I get such thoughts, I would paper-trade the ideas from such thoughts to fine-tune and verify the ideas.

...cont'd tomorrow...

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Faithfully repeat

cont'd discussion of Think and Grow Rich!: The Original Version, Restored and Revised, hereinafter called "TAGR".

Chapter Three: Faith

According to TAGR, the emotion of faith is one of the emotions that are effective when combined with dominant thoughts in converting your desires into reality.

You can attain faith in a thought by many repetitions of the same thought.

In applying this to trading, I would think about having already traded successfully and do so repeatedly day after day, twice a day as described in yesterday’s article.


...cont'd tomorrow...

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Six steps of Think and Grow Rich

cont'd discussion about Think and Grow Rich!: The Original Version, Restored and Revised , hereinafter referred to as TAGR.

The most important message of Chapter two of TAGR is the six steps listed for turning desire for riches into their physical equivalent. Here are the steps and how I would apply this to trading.

First, describe an exact definite amount of money you desire. In applying this to trading I would use a dollar amount I want each week in daytrading, a dollar amount each month for swing trading, and a dollar amount each year for longer term investing.

Second, describe what you intend to give to get the money. In applying this to trading, I would state that I intend to give 2 hours of my time every day. One hour given to watching live prices and entering orders, 30 minutes to conditioning myself psychologically, and 30 minutes for debriefing the day’s results.

Third, describe the date by which you intend to possess the money. In applying this to trading, I would merely refer to a calendar.

Fourth, describe your plan for attaining the money and begin immediately putting it into action. In applying this to trading, I would write out a trading plan that includes entry criteria, exit criteria, position size algorithms, daily routines, and so on.

Fifth, put the foregoing information in writing.

Sixth, read the written statement out loud twice daily, once in the morning and once in the evening. As you read, see and feel and believe you already have the money. In applying this to trading, I would schedule an appointment with myself by marking off my calendar blocking off time to do this.


...cont'd tomorrow...

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Think and grow rich with little or no work

Think and Grow Rich!: The Original Version, Restored and Revised is a popular book from the twentieth century.

The author, Napoleon Hill, says in the preface that “in every chapter of this book, mention has been made of the money-making secret which has made fortunes for hundreds of exceedingly wealthy men whom I have carefully analyzed over a long period of time”.

In the forthcoming days, I will examine each of the fifteen chapters in that book and describe how I would apply it to trading.

Hereinafter, “Think and Grow Rich” shall be referred to as the “TAGR book”.

Chapter One: Thoughts are Things

The main message in Chapter One of the TAGR book is that continuously dwelling on thoughts of success attracts success into your life. Doing so generates in you a burning desire for a definite outcome that persists despite rejection and past failure.

Here’s my application of this to trading. Every day, imagine yourself trading successfully. Mark your calendar and block off 5 minutes every day at the same time of day to do that. Furthermore, throughout the day whenever you feel like it, repeatedly imagine yourself trading successfully. Write out a script for those sessions of imagining success and follow the script every time. Notice feelings you enjoy while you experience imagining success. Include the requirement of feeling those feelings in the script. That ought to generate the required “burning desire” that Napoleon Hill in TAGR says you need.

The rejection you need to overcome in trading include the negative image of traders sometimes appearing in the news and entertainment media.

The failures you need to overcome in trading include the past losses from being stopped out after a perfect entry, experiencing a loss due to not having a stop, and all other past losses.

In Chapter One of the TAGR book, the author says also that “when you begin to think and grow rich, you will observe that riches begin with a state of mind, with definiteness of purpose, with little or no hard work.

Amen to the “little or no hard work”. After all, trading today involves no more than pushing buttons on a keyboard and clicking a computer mouse. You’ll need to do some weight training to prevent your muscles from atrophying.

...cont'd tomorrow...

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Review of Mark Tier books - the final installment

...cont'd from yesterday...

Continued discussion about Becoming Rich: The Wealth-Building Secrets of the World's Master Investors Buffett, Icahn, Soros and The Winning Investment Habits of Warren Buffett & George Soros

16. Use what you have learned to reduce time spent on investing. Build past and recent knowledge into your trading system.

17. Never tell anyone what you are planning to invest in or what you are currently investing in.

18. Delegate investment tasks that someone else can easily and reliably perform.

19. Spend less than your income. Save money.

20. Think of investing as a vehicle for fun and self-fulfillment instead of an income source.

21. Loves the process of investing.

22. Always walk away from any investment that does not totally meet your criteria.

23. Be willing to put almost all of your net worth into your investing business.


...back next week...

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Mark Tier, more on Buffett, Soros and Icahn

...cont'd from yesterday...

Continued discussion about Becoming Rich: The Wealth-Building Secrets of the World's Master Investors Buffett, Icahn, Soros and The Winning Investment Habits of Warren Buffett & George Soros

11. Wait for investing opportunities that satisfy your own criteria.

12. Act fast when you find an investing opportunity that meets your criteria.

13. When you have an open position, keep it until an exit that meets your exti criteria manifests.

14. Immediately exit investments when you realize you entered by mistake; and immediately re-enter investments when you realize you made a mistake in exiting.

15. Regard mistakes as learning experiences.


...cont'd tomorrow...

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Don't listen to anyone else, etc.

...cont'd from yesterday...

Continued discussion about Becoming Rich: The Wealth-Building Secrets of the World's Master Investors Buffett, Icahn, Soros and The Winning Investment Habits of Warren Buffett & George Soros

6. Give your own trading system ample time to succeed before making any changes to it.

7. Focus and specialize, don’t diversify.

8. Only invest in what you can understand.

9. Refuse to invest in things that don’t meet your own criteria.

10. Eschew other people’s opinions about investing.


...cont'd tomorrow...

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