Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Zen in the Market -- Ignore unavailable to you. Want to Upgrade?

To: Michael Davis who wrote (36)	2/14/1999 11:53:00 AM
From: Cosmo Daisey	Respond to of 60

MD, I didn't get it either. CD

To: Michael Davis who wrote (36)	2/16/1999 2:38:00 PM
From: Cosmo Daisey	Read Replies (1) \| Respond to of 60

Mike, You probably have this already but just in case, here it its. Coz TABLE OF CONTENTS Moderator's Comments The meaning of BI-MONTHLY. This Week's Questions 1. When will we see totally electronic futures trading? 2. What's the hardest part of trading? 3. Another book worth reading? Closing Thought Experience is the best teacher but.... ______ MODERATOR'S COMMENTS I incorrectly closed the last issue of the digest with, "that's it until February 6, 1999." I plan to publish this digest the 2nd and 4th Saturdays of each monthly rather than every other week. It all depends upon when the 4th Saturday of the month falls. To make it short, the longest interval will be three weeks. Most of the time it works out to be every other week. Sorry for the confusion. Anybody notice the NASDAQ's record leap on Thursday followed by the almost record drop on Friday. I hate to sound like a broken record but the point is that it is a moment to moment business and yesterday's action is just yesterday's action. Each day brings a new market. It's what's happening NOW that counts, not yesterday nor tomorrow. FOCUS ON THE MOMENT!! THIS WEEK'S QUESTIONS Q.#1 Eddie, Seems that the futures exchanges in the US are dragging their feet in making order execution totally electronic. Why? Pat A. , Harwood Height, IL A.#1 Pat, You are right. EUREX, a european exchange that was formed by the combination of SOFEX AND DTB is now the largest futures exchange in the world, passing up the Chicago Board of Trade and the CME. Why? Because given the opportunity, customers would rather trade electronically bypassing the floor traders and brokers who handle their orders. Plus it's a heck of a lot cheaper for everybody. The problem is that exchanges are controlled by their membership and an order that is entered and executed totally electronically (no human being involved) is not in the best interest of the floor populations. It is going to happen but not as fast (at least in the US) as it was previously expected. A NEW all-electronic options exchange is in the works and will be available next year. This may force the hand of the CBOE and others to get with it. The developers have real deep pockets and this should work. Time will tell. I remember when all options were traded over-the-counter (no listed exchanges). When the CBOE was proposed, all of these option dealers (mostly in NYC) said, "What do a bunch of grain traders know about options?" Within a year of the opening of the CBOE, all of them were out of business. Perhaps this will happen to exchanges doing business the old-fashioned way. What's your bet? ** Q.#2 Ed, You've been trading a long time. What's the hardest part of trading? Jose V. Miami, FL A.#2 Jose, In a nutshell, it's all about being able to take losses quickly. Things either go up or down. It's that simple. The pain involved in being wrong is the hardest thing for most traders to deal with. No one likes being wrong. However, that's a big part of this business and how you respond to this is what makes the difference in being in the game for the long haul or just hanging out until you eat you gun. Most people can't handle the psychological punishment. It's great when they are right but hell when they are wrong. It comes with the territory and unless you can deal with this in a reasonable manner, I do not recommend trading. It's just the price of admission. Q.#3 Mr. Toppel, Can you recommend any other trading books? Bernie B. Los Angeles, CA A.#3 Bernie, My very favorite book is Zen in the Art of Archery by Eugen Herrigel. This book was the basis for my own thinking about the markets as it captures the aspects of ego and effortless effort. I have read and reread it a twenty times and still get something out of it each time it read it. I can't recommend it highly enough!! Combined with my book, I think you'll get a good understanding of the process of letting go so that you can go with the flow effortlessly. * FINAL THOUGHT "Experience is a tough teacher. It gives the experience first and the lesson afterwards." William Otley, Exec. Director USPA And so it is with trading and investing. Unfortunately, you have to take your lumps first in order to learn from your mistakes. Read all the books you want but you will not get as much understanding as you will from actually experiencing your own emotions while in the markets. That's it until February 27th. Edward Allen Toppel * P.S. You can order your personally autographed copy of Zen in the Markets thru my direct order page at <http://www.samuraitrader.com/order.html> *** Forward this Digest to others you think may be interested. If you are not a subscriber, please follow the directions on our web site at: <http://www.samuraitrader.com>. To unsubscribe, email questions@samuraitrader.com and type the word UNSUBSCRIBE in the Subject box. Thank you. ---------------------------------------------------- The Samurai Trader's email Digest is a production of Samurai Press, Highland Park, IL. All opinions expressed in the answers provided are those of Edward Allen Toppel and are not meant to endorse, condemn or in any way guarantee any of the investment or trading opinions or decisions discussed. ---------------------------------------------------------------------------