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December 11 - 22, 2006


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(Quotes from Ed in Red)


Fri, 22 Dec 2006




Dear Ed,

What do you think of the Boltzmann curve? I think it is wrong, and that the particles cannot have a normalized distribution. They must all tend towards the same velocity, or speed, given any time away from start. Let me know.

The temperature of a large physical system comprises the motions of individual molecules and atoms.


These particles have a range of velocities that change through collisions with other particles.


The Maxwell-Boltzmann  distribution specifies the fraction of particles within various velocity ranges as a function of the temperature of the overall system.



Ludwig Boltzmann



The Ultimate Whipsaw


The scientific community

opposes Boltzmann's theories. 

He suffers from chronic depression

and ultimately hangs himself. 


Shortly thereafter experiments verify his work.


Clip: http://www.astrocosmo.cl/


Fri, 22 Dec 2006

Merry Christmas


Dear Ed,

Merry Christmas and a Happy New Year to you, your family and the Trading Tribe.

Thank you so much for your ongoing inspiration and support.

Good Luck!

Thank you.

Fri, 22 Dec 2006


Rocks Report

Dear Chief,

I am reporting in about my last rocks process. This is my fourth or fifth rocks process in the tribe context. The resulting shift in my personal process system is profound. I am grateful.

The last process is focused on a pervasive feeling of ambivalence. I am working on my snapshots when I notice that I am "stuck" in all four:

a. work - slide into retirement or start over in a new field?
b. relationship - I want access to administrative decisions
c. fun - have money and time but what and with whom?
d. health - skinny but not fit, workouts not consistent.

I wring my hands and scratch my head during the check-in. I feel live, acutely frustrated when I review my life. I ask the tribe for help in clarifying the dilemma and transforming my response to ambivalence.

I get into the hot seat. I work hard. I remember almost nothing - not the precipitating childhood memory of receiving the rock, almost nothing of what transpired (I cursed at the process manager and don't remember doing so!). The trance state is deep.

What I do remember is my new rock empowering me to:

think clearly and deeply
build a support team
get out of bad relationships.

I don't know how it all happened but the results are lasting and vivid. I feel free from the grip of perpetual ambivalence!

Thanks for your work in developing this technology.


My life gets better.

Thank you for sharing your process.

Date: Fri, 22 Dec 2006


Does this make music history?


Hmmm ... Ray Charles + Jerry Lewis + Fats Domino all jamming together


It works for me.

Thu, 21 Dec 2006


Questions about Workshop

Dear Ed.

I hope you are well.

Is the workshop still open? If so is it still 3000 usd?
Are you going to be the process manager for all
willing attendee for the Rock Process.

The current price is on the website. 


I intend to demonstrate the Rocks Process personally so that people can experience it and also, if they like, learn how to conduct it.


Thu, 21 Dec 2006


Wants Investment Management

I would like to inquire from Ed Seykota if he will take on clients for investment management? I read Market Wizards, and the interview with Ed struck a cord from the opening introduction ... the Zen-like calm of the man permeates his words and I would love to meet him, but I will settle for having him manage my investments. To paraphrase Ed in the Market Wizards interview I would love to find a superior trader to do my trading for me and go do things I love to do. Will Ed take on another client?

You might consider clarifying your investment objectives before you select a manager.

Fri, 22 Dec 2006



Hi Ed,

Thank you for an informative and entertaining website.

I like to share you a video of two people not communicating effectively.

click for video

Hmmm ... something here reminds me of congress.

Thu, 21 Dec 2006




I had a lot of thoughts since our conversation and after noticing my condition I have to admit that I'm in a mess. A bag of rocks, if you may.

I figure the best I can do now is finish this semester, take a dean's leave and visit you for a couple of months. I can be your apprentice, do the necessary work, join the tribe, fix my sorry ass, get to know people, get to learn more about bringing up the business and take the RIA and CTA exams in the meantime.

If you agree, I would like to plan my stay from the second half or end of February for as long as my visa permits (up to 6 months).

I feel somewhat compelled to do this.

I am accepting all applicants and sending notices for how to proceed.

Wed, 20 Dec 2006


Holiday E-Card


The card tastefully declines from stating that the natural "cure" for the imbalance is inflation.

Wed, 20 Dec 2006


A Sioux Story

The Creator gathers all of Creation and says, “I want to hide something from the humans until they are ready for it. It is the realization that they create their own reality.”

The eagle says, “Give it to me, I can take it to the moon.”

The Creator says, “No. One day they may go there and find it.”

The salmon says, “I can bury it on the bottom of the ocean.”

“No. They can go there too.”

The buffalo says, “I can bury it on the Great Plains.”

The Creator says, “They can cut into the skin of the Earth and find it even there.”

Grandmother Mole, who lives in the breast of Mother Earth, and who has no physical eyes but sees with spiritual eyes, says, “Put it inside of them.”

The Creator said, “It is done.”



Many FAQ readers acknowledge they create their own reality - and intend to create it in harmony with right livelihood.




The Sioux Nation


comprises three subcultures

Lakota, Dakota and Nakota

all of which mean "Friend" or "Ally."



Clip: http://jobau.free.fr/Images/Amerindi/


Wed, 20 Dec 2006


Medicating Emotions


I really appreciate the work you've done as Tribe meetings are having a positive effect for all involved after 2 mos.

Another thought string

If much of what we do is avoid feeling our feelings and many "anesthetics" come to mind ...
then perhaps manipulative intent = provide mechanism to avoid feeling common public feelings
and even more insidious intent = implant feeling that humans don't like to feel (e.g. guilt or fear) along with the salve to avoid that feeling ...

This seems like the architectural diagram for religion to me...

Yes, I need to take my disgust with religion to the hot seat ...

Yes, you can find strong themes about medicating feelings in religion, medicine, politics and most everywhere else.






Republicans traditionally medicate fear.

Democrats traditionally medicate envy.


They traditionally act together,

in a non-partisan manner,

to medicate laziness.


Clip: http://research.soe.purdue.edu/


Tue, 19 Dec 2006


Agriculture Going to Pot

Marijuana is the largest U.S. cash crop according to a group advocating the legalization of the drug for medical uses. The study, citing government statistics, found $35 billion of pot is sold each year, making it bigger than wheat and corn combined. California produced the most with nearly $14 billion a year.




Marijuana: $50/ounce.



Wheat: $5/bushel.


Hmmm ...Marijuana sells for

about 5000 times

the price of wheat.


Perhaps we might

elevate the price of wheat,

help farmers, and fix the deficit


all by simply making wheat





Clips: http://www.cannabis-marijuana.com/



Tue, 19 Dec 2006


Chart Server

Hi Ed,

I just tried to set up a new account to see if I could get to the charts. That worked, but the charts haven't updated from 12/15/06 - so my work around did
not pan out as I had hoped. Also, when I tried to get in to the new account after logging out, I ran into the same problem. I got your program page with an error in red.

Thank you for the catch.

Tue, 19 Dec 2006


Report from the [City] Tribe

Dear Ed,

This is just an update on the progress of the
[City] Tribe.

We are now three members. We gather regularly (about every 2/3 weeks). We do Hot Seats & Snapshot process. A full day is dedicated for a Tribe Meeting at the [City] Tribe, we gather at 10.00am & continue till all issues are resolved usually approx 4.00pm.

Forming a ... Tribe was one of my Snapshots & I am pleased to report that it is going very well. Just shows the power of the Snapshots process.

Much has been gained by the members in doing the Hotseat process & as the tribe matures we find we really get to understand each other & a strong supportive field is growing between us. Our Tribe meeting starts at 10.00am on a week day & we continue till issues exhaust. This has proved very effective.

Please find attached a revised TTID (Tribe Directory

Thank you.


Thank you for sharing your process.

Tue, 19 Dec 2006




Have you ever come across the term "limerence"?

best regards and have a great Christmas.

Dr. Dorothy Tennov coins the term, "Limerence" in 1979 in her book, Love and Limerence - the Experience of Being in Love.


According to Tennov, Love involves concern for the other person's welfare and feeling, while limerence does not. Affection and fondness exist only as a disposition towards another person, irrespective of whether those feelings are reciprocated, whereas limerence demands return.
Sex with the object is neither essential nor sufficient to an individual experiencing limerence, unlike one experiencing sexual attraction. Limerence is much longer lasting than feelings such as crushes, infatuation, romantic passion, and puppy love, enduring for months or even years.





something like possessive love

without the concern

for your partner's well being.


Clip: http://www.progressiveart.com/pino/


Mon, 18 Dec 2006


Ships Passing on a Plane

Hello again....

We met on the trip from Austin to Phoenix today and you were generous enough to take the time to share your insights and honesty.

Normally I don't burden random fellow travelers with my travails ... and I look back on the afternoon from a kind of shell shocked haze. Thank you seems such a small thing to say, but it comes from a place of profound gratitude.

I took a quick look at your horoscope and had to smile! Your chart screams creativity, creativity, creativity and power. There is no such thing as a 'bad chart' of course. But occasionally there is one like yours and I have to just smile at the almost outlandish degree of talent.

Of particular interest, given the depth and insight I witnessed this afternoon, is the total lack of water element in your chart. Normally, when one is missing an element in the natal chart, the life itself becomes the pursuit of understanding the missing element. (There is no negative judgment here; I am low in water myself, having only one planet in a water sign.)

"Water" is the domain of emotion ...

I would love to be able to see your web site and learn more about what it is that you do. Most of all though, I had to thank you. Just now I wrote to ... the author of the book I was reading, and told him about our meeting and how profoundly you impacted my consciousness. Had I not been reading his book, I may have missed the opportunity to 'see' what it is that I continue to do.

Amazing how we can touch a life so briefly, yet so critically ... and I thank you!

My best to you,

Thank you for sharing your process.







Strangers Meeting on a Plane


sometimes share

the plane truth.



Clip: http://www.brainpowerlearning.com/


Mon, 18 Dec 2006


Reno Philharmonic

Uses Slot Machines in Orchestra

This is hilarious ... Reno philharmonic's new instruments!!! (IGT is a major Reno employer, and their product is slot machines)

Video: http://news.rgj.com/apps/pbcs.dll/article?AID=/20061213/VIDEO/61213015

I find the tune Ka-Ching.

Mon, 18 Dec 2006


Mad at Father

Hi Ed!

I have been experiencing very upset feelings to my father that has went on vacation and left me with a huge deal while he's away. I've found myself writing very upset mails to him but deleted them instead of sending them.


I have wrote some easy version where I tell him I don't have the time to take care of his company, so I ask him why he doesn't come home. I think it's my own fault that I agreed to help him, but I've got my own work to handle at the same time. (I'm not working at my fathers company).


What does it tell you when I write letters that I don't want to send? I guess the reason is that my father doesn't receive me at all. I am very angry but I want to deal with it in a proper manner. He is really using me and I know he's doing it because he has done it before.

I try to face this as a k-not, but I'm not sure what is the knot - my inability to say no to my father or my inability to face that people put work on me that I don't want to do. Maybe the combination makes it a k-not.

In the meantime I am trying to describe my trading system to you, but I repeatedly want to improve it before I send it. I really want to stick to the system I send you, so I want it to be a good one. Sooner or later this will be done, because this is what I want to do. (instead of dealing with other peoples tasks).

Thank you for sharing your process.


You might consider taking your feelings to your Tribe. If you develop signature forms, you might consider using the Rocks Process.




The Relationship you have with your Father


is likely to show up

in the relationship you have

with your trading system


Clip: http://brinch-hansen.net/


Sun, 17 Dec 2006


Mystical Experience

Hi Ed !

An extraordinary meeting. One member who took the hot seat went through many layers in the course of an hour, including exhaustion, yawning, regret, dissatisfaction, inadequacy, frustration, until finally reaching a quiet point where bright white searchlights flood his mind. This is a mystical experience of enlightenment written about in various texts through the ages, achieved through TTP.

Thank you for sharing your process.



Somewhere along the Path

to the Joy Point


you might meet

Little Miss Tickle


Clip: http://www.aeclectic.net/tarot/


Sun, 17 Dec 2006


Report on the Rocks Process

Hi Ed !

I recall being one of the early beta testers of the Rocks process. It first involves the hot sittee articulating willingness to go through anything to discover the 'rock'. The rock is another way of describing a knot, but a bigger, more deeply set knot that perhaps has not responded to the normal TT process, or responded temporarily, then reformed.

Once willingness is confirmed. the process manager explores to find the source of the rock. This leads one to a childhood experience, where someone gave the rock to the hot sittee. Once the process manager and hot sittee discover, identify this charged dramatic episode, the process manager arranges a recreation of the drama, with the other tribe members as participants.

The tribe re-enacts this dramatic moment. The hot sittee is in a trance. At the end of the drama, one participant gives the hot sittee an actual rock, which he accepts.

Next, after a brief rest, the tribe re-enacts the drama again. This time the hot sittee refuses the rock, no matter what the tribe members do to try to give it to him.

Then the tribe reassembles in a circle. With an uncharged rock, the tribe, drawing on their group wisdom, charges the rock with other possible character traits, or responses to the dramatic situation.

Next the tribe re-enacts the drama a third time and gives the hot sittee this new rock. Next the process manager takes the hot sittee from the childhood time, through the years to the present, stopping along the way every five years or so, scanning for incidents where the rock may have influenced one's life, and asking the hot sittee to use the new rock to respond to these situations. Finally, the process manager guides the hot sittee to the present, completing the Rocks Process.

Personally, I note positive changes in attitude and response in my life after this process. All parts of the process are necessary, as these rocks constitute the basic motivators of a person.

Thank you for reporting your experience of the Rocks Process.

Sun, 17 Dec 2006


Ed Visits Austin Tribe

Hi Ed,

It was a pleasure meeting you. Thanks for attending our meeting!

The Tribe reconvened after you left and reviewed the Rocks process in detail, then conducted a Rocks session ourselves,with the next Hot Seat. It was a slightly bumpy ride, but we nailed all the critical components.

We will follow up early in the New Year on our commitment, with a submission for FAQs.

I hope you had an enjoyable weekend in Austin.

Thanks again for your time, and for sharing your work with us.

Yes.  A Tribe with TTP experience can pick up the essence of the Rocks Process by seeing it one time.

Sun, 17 Dec 2006


Managing Money

Mr. Seykota,

I've followed your work/life for 6 years, I like the trend trading style, like to read the FAQ.

Just recently I understood the true meaning of your "Everybody gets what they want from the market and from life" (at least at a Fred level). When I first read I was 20 years old, but now been 26 years old is much easier (AHA moment).

I would like to know if you still accept money to manage? As I work in a proprietary desk in an investment bank, the compliance department is a big hurdle to any trading style (no short selling, six months holding period required, etc).

I don't accept money. 


Occasionally I accept a client.

Sat, 16 Dec 2006


Question About Trading

Dear Mr. Seykota,

I am writing you because I have a burning desire to become a professional trader.


I graduated college in June with a degree in Economics and History, and currently, I am putting my full-time efforts into educating myself about trading. I have read about you in books by Jack Schwager and Michael Covel, and I have incredible respect for your accomplishments and mindset.


Through my reading and studying, I feel as though I have built a good theoretical foundation for trading, and now I would like to take my learning to the next step by working with a mentor.


The search for a mentor has proven difficult since there are no real conventional methods to finding one. I know you are a prominent and influential figure within the trading community, so I was wondering if you know of any traders who would be willing to take on a hard-working, devoted, and smart student.


I live in Orange County in Southern California, but would follow an opportunity if I believe in it. If you do not know of anybody in particular, but could point me in the right direction, that would also be greatly appreciated. I am sincerely sorry if this is a waste of your time, but I am trying to find the right guidance in order to help me find the path of least resistance in accomplishing my goal. I would be grateful of any suggestions you might have.

Thank you very much and Happy Holidays

You may join the apprentice program.

Sat, 16 Dec 2006


Ronald Reagan Still Warms my Heart

"The most terrifying words in the English language are: I'm from the government and I'm here to help." - Ronald Reagan

"I have wondered at times about what the Ten Commandment's would have looked like if Moses had run them through the U.S. Congress."- Ronald

"The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination." - Ronald Reagan

"Government is like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other." - Ronald Reagan

" The nearest thing to eternal life we will ever see on this earth is a government program." - Ronald Reagan

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it
stops moving, subsidize it." - Ronald Reagan

"No arsenal, or no weapon in the arsenals of the world, is so formidable as the will and moral courage of free men and women. - Ronald Reagan

Ronald Reagan (1911-2004) successfully negotiates the transition from theater to politics and from left to right.




Reagan, looking to the Left




Reagan, looking to the Right


Clips: http://www.wildestwesterns.com/no_7/





Fri, 15 Dec 2006


Accepting the Feeling of Impulsive Trading

Dear Ed,

I have a practice to review my trading diary and feeling, and I believe I get something from your FAQ these two years :-

First half - A feeling of missing trading opportunities again and again. Keep on losing money on impulsive trading, nearly addicted to overtrading.

Second half - Win a little money and draw most of money to bank as I am afraid to lose the money back to market.

First half - Always wondering why I cannot act on the turning point I actually figured out by chart reading. Much guilty feeling that if I could act on my chart reading, I would win much money easily. So very painful.

Second half - Loss the little money win in first half of 2006. Keep thinking "Why I am so stupid to forget the chart reading, and always take impulsive trading and asking people around me for opinion?"

Finally, I get something as I turn to look what the image appear in my mind.

When I cannot resist the temptation to impulse trading (usually while I keep looking at the day-trading chart, and keep thinking possible profit by next trade), I push the trigger and hurt my account.

Following, I talk to myself - I am not a good trader.

And then, I get into another impulsive trade and the cycle repeats again.

Then, in this Dec, I disconnect my day-trading chart system. Accept the feeling of impulsive trading by this exercise: keep a very small bet and close stop loss when I trade by the feeling of impulsive trading. As the result hurt little of my trading account, I do not feel so hatred to the action.

Then, I focus my major bet on trading by Day-end chart reading.

I try to live with my feeling impulsive trading happily with very minimal influence on my trading result.

Thank you for sharing your process.


You might consider taking your feelings of impulsiveness to your Tribe - and finding their positive intentions.





Clip: www.come-over.to/FAS/ImpulseControl.htm

Thu, 14 Dec 2006


Short Term Trading

Hi Ed:

I can say that my trading experience has been growing along with this site; I took a very deep interest in trading around December 2002 and quickly start and still reading as much books as I can. However, I began to notice that some of the authors had sometimes very different views about trading, from long term trading to swing trading to scalping.

I never quite understood why you warn people about short term trading because even if it seem very logical the fact that costs stays the same while profits tend to decline, I do understand now and my experience taught me something else as well.

A year ago I opened an account in an online poker room, I applied some money management rules, became familiar with the probabilities and poker theories and began playing, I was doing very well, I even double my account in a month playing 5 or 6 hours a day but here is the pitfall. When losing I started making the mistake of staying and not leaving, suddenly I started ... losing and losing and in 2 days I gave it all back.

I remember feeling like I can not quit, like the PC was holding me and I just kept on losing (fortunately the poker account was just a 10% of my capital). I felt guilty because my grandpa always warned me about such games.

I gave plenty of thought about what happened and I feel like when I lose trading long term, because things develop slowly, I tend to have some time to “digest it” and talk to myself and my wife even if is a 40% drawdown. On the other hand, if I day trade I feel the same as playing online poker.

That experience taught me so much that no wonder why so many author’s virtually make a good living entirely on writing books on short term trading, newsletters, making seminars telling people to buy the lows and sell the highs. I am now sure they can not make a dime trading because they are not honest with themselves.

God bless you and I keep learning from you and others experiences.

You might consider taking your feelings about gambling to your Tribe.  Perhaps you are carrying a Rock from your Grandfather.



The Payoff From Day Trading

(and from other forms of gambling)


can be a justification

for feeling k-not remorse.



Clip: http://www.sedona.com/html/gambling.aspx

Wed, 13 Dec 2006


San Diego Tribe

Hi Ed,

I am sending the San Diego TTID.

Thank you.



Welcome !


San Diego




Wed, 13 Dec 2006


Dear Ed,

After our conversation on Monday I get uncomfortable and worked up and start to have some feelings come up regarding our shared observation that I seem to be holding myself back from more success. The feeling is primarily one of a vague sadness. Vague because it doesn't associate with any event or current situation, but is rather a kind of general miasma. For a while I push it down and forget about it.

Yesterday, I am reading through the Rocks Process case studies you publish on your website. As I read, the sadness returns and I find myself willing to go with it.


The closest I can come to pinpointing the trigger for the feeling is my observation that here are some people with some pretty heavy issues, and they are getting results and resolving the issues. Having issues + resolving issues = I feel sad / nostalgic / longing.

At that point, I feel compelled to let some stuff out and, in particular, to write things down. I feel like I have some large animal I have been hunting for years by the tail, and I want to grab on tightly NOW while I have the chance, lest it escape and disappear into the jungle of my psyche. It occurs to me that one way I keep the "animal" on the loose is to have particularly happy days on Tribe meeting days, and to report no issues or tackle a small, comfortable issue. Another defense mechanism is to go blank at the appropriate time so that I don't have to face the issue. I want to get some things down on paper, so that I can't wuss out on myself later by conveniently forgetting everything.

I have a strong notion that I have a chance to do important work, and if I can take advantage of the meeting this Friday as well as any follow up work that is necessary, I can make a huge positive change in my business and my life.

I am attaching the notes that I take yesterday, which I write stream of consciousness in longhand (though I copy them verbatim into a word document for ease of reading). They may not be SVO-p, or well-structured, or anything else since they are just an outpouring of what comes up in feelings and thoughts as I write. They may give you some insight into my situation that can be helpful when we meet. They may not. In any event, I look forward to the meeting on Friday.

On another note, if you need anything at all or just want to hang out while you are in Austin, I plan to be free this weekend. I am willing to show you around town if you like.

See you on Friday!


P.S. Since writing those notes I am extremely productive at work, and I feel lighter. I have a lot of work to do, but just beginning it I notice a change.




Stream of Consciousness notes from 12/12/06


... there is no excuse for my shortcomings ... I don’t want to hurt others ... particularly my mother ... afraid of me failing ... a key phrase she uses is, “just wait ... I always feel like I am not competent and my father generally steps in and makes sure to take over in any situation where I might expose any incompetence. ... he is not supportive of any interests ... he is an expert at almost anything. Correction ... vivid recall of shooting range incident when I am 5-6 years old. I feel strong shame. - “I can’t be trusted ... the message from my parents, “We support you, but don’t get your hopes up.” Also, “Just wait, things don’t go well forever.” ...  pattern of behavior between my father and mother. My mother acts ditzy and unable to think for herself in my father’s presence (though she is intelligent on her own), and my father treats her with ridicule and scorn as a “stupid woman.” ... I feel angry at my father for treating her this way, but I don’t stand up for her. I feel angry at my mother for taking the abuse and not standing up for herself. This pattern repeats to this day in front of the whole family, including my wife and child. We (my wife and I) feel disgust at this behavior, but we don’t speak to my parents about it ... Strong feelings of wanting to physically assault my father and give him a taste of his own medicine (humiliation and defeat), and of wanting to yell at my mother (just like he does!!!) that she is weak and needs to stand up to him ...  Growing up, I sometimes treat my mother just like Dad does. In adulthood I make a conscious effort to treat her better. She reports I am not like my father at all, that I am emotionally responsive and sensitive to others’ feelings.

Thank you for sharing your process.  You may be carrying some rocks from your mother that she uses to medicate her feelings about how your father treats her.




Abuse is an Artifact


of a system in which people

cooperate in many ways


including maintaining the pretense

they are not cooperating.


Clip: http://www.sedona.com/html/abuse.aspx

Wed, 13 Dec 2006


Emotions and Trading

Copy of a letter to a friend


This is a letter I sent to a trading friend. Please excuse me using you as a reference and putting words in your mouth.



I was driving to work this morning, grumbling, and I had a realization. I was inspired by Ed Seykota. His big push about trading is to get you to develop a system, as automated as possible, back-test it, put it in production, and then leave it the hell alone.


Ed’s a smart guy. He agrees with me on this point. The problem with 100% of traders is that they can’t leave it the hell alone.


Their emotions get in the way and they mess with it, or dump it when the going gets rough – guaranteeing that the losses taken during the rough part stay lost. His technique is to have you feel your emotions away from the trading desk so you stay the hell away from your system. During those rough times, your inner brain (lizard brain, ancient brain, whatever) is trying to scream at you by hijacking your amygdala throwing you into a full out sympathetic fugue and instilling severe panic that “SOMETHING MUST BE WRONG!” Though exactly “what” is wrong is never revealed by the emotion.

It FEELS like the market is messing with me PERSONALLY with all the trimmings of random reinforcement – punishing me when I did the right thing (like take my money when I cut my loss) and rewarding me for doing the wrong thing (like give me money when I take that profit while it’s still on the table instead of letting it run). But, RATIONALLY, the market doesn’t even know I’m there. It’s not trying to teach me anything. It’s not trying to help me. It’s not trying to hurt me. How hurt do I feel when I walk on ants crossing the sidewalk? But (anthropomorphizing, of course) the ants think Armageddon is nigh.

Humans are hard-wired to feel emotions. That’s how evolution created Homo Sapiens, or God, take your pick. We aren’t rational beings. Only some of us aspire to be, but we aren’t built that way from the start. Rational thought is like fuel-injection for your brain. It’s the latest technology for humans, and it was added well after everything else was developed. The gut is so developed that emotions seem high-tech to it.

Along comes a way for individual humans to make a lot of money – the markets. (And it’s just money, I’m not making “joy” or “happiness” in the markets, so why assume it makes “misery”?) Since there are millions of players in the market arena, their transactions balance out in the zero-sum game. But, like the heard of deer that need a drink of water, they can all move in one direction toward a perceived goal from time to time. The point is that no one person is out there trying to empty my particular account. There’s a bunch of them. And, I’m there trying to empty the faceless others’ accounts. It’s a simple tug-of-war, with assets like currency, futures, and stocks as the rope. And both sides have a variable number of pullers with differing strengths. To complicate it more, I play both sides at different times pulling “long” or “short”.

Re-enter emotions. During a drawdown, I feel like I’m being punished. As my account hits a new high, I’m unstoppable. Great. FEEL that. Sit down, and share it with a few friends (a la the Trading Tribe). Talk about it in nauseating detail, or tearful detail, or raging detail, or don’t even talk about it, just FEEL it, everywhere in your being. That is what satisfies the brain, not an account balance sheet. And since humans are hard-wired for emotional feedback, the loop is closed. The result is that I can get passed this moment in time and let the system I’ve worked so hard to develop keep doing its job.

The automated system, well-developed and back-tested, will make money for me. I need to sit on the couch and give my brain the opportunity to purge the emotional reactions.

Thank you for sharing your process.  You might consider taking you insights and feelings to your Tribe.

Thu, 7 Dec 2006


How to Join


I just finished reading your book and would love to attend one of your sessions. I am a CTA and commercial system vendor and have been trading commodities for about 10 years. I have a mixture of motivations from personal to professional to social and fun. How does one get invited?

See Tribe Directory - How to Join, above.

Thu, 7 Dec 2006


Congratulations - Trader Hall of Fame


Congratulations on be inducted into the Trader Magazine Hall of Fame ... we all knew they would want the opportunity with you. Nice photos, too. I can't imagine you spend a lot of time on your deck wearing a business suit ...

If you are planning a visit to San Diego again, please let me know. The surf is up, and all is well.


PDF file of interview


Mon, 11 Dec 2006


Wwaaaaaay beyond Lovely Hula Hands



Date: Mon, 11 Dec 2006


Music Machine

This machine was built as a collaborative effort between the Robert M. Trammell Music Conservatory and the Sharon Wick School of Engineering at the University of Iowa. 97% of the machines components came from John Deere Industries and Irrigation Equipment of Bancroft Iowa.

It took the team a combined 13,029 hours of set-up, alignment, calibration, and tuning before filming this video.

It is now on display in the Matthew Gerhard Alumni Hall at the University and is already slated to be donated to the Smithsonian.


click here

Cool machine.


You might check the video closely - it is likely an animation - and the "rest of the story" is, well, just story.

Mon, 11 Dec 2006


Migraine Headaches Gone

Read with interest the FAQ on migraines, and realized i haven't had a single headache since my rocks process.


I previously had one about once a week. Benefits that include events which do not happen are harder to measure, I guess. ( ie "how many times did you not beat your wife last week." )_

The calculus tutoring testimonial is awesome. My son needs some of that !




Clip: http://www.pfo-migraine.com/

Mon, 11 Dec 2006


Likes the Evidence


Ed says:

"We don't have much evidence that discussing markets and trading techniques contributes to prosperity.

We do have evidence that aligning thoughts, feelings and snapshots moves us quickly toward right livelihood."

Fantastic comment - pasted straight into my "best quotes" file.

Thanks !


Mon, 11 Dec 2006



Hi Ed Seykota,

In your reply to the 30th Nov 2006 FAQ on "Mentors",
you said that you don't recall learning specific
lessons as much as assimilating attitudes from your
mentors. Could you share with me what are those
attitudes that your mentors impart to you that you
find meaningful? Thank you for your generous sharing of your amazing wisdom.

If you'd like to assimilate attitudes, you might consider attending a Workshop or joining a Tribe.





seems to work best

in person.



Clip: http://www.utdallas.edu/~ctf031000/books/