© Ed Seykota, 2003 - 2007 ... Write for permission to reprint.

Frequently Asked Questions

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Answers

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.

imagenbi/boltzmann.jpg

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.

My life gets better.

Thank you for sharing your process.

Does this make music history?

http://www.dailymotion.com/video/x1wgu_rcharles-jllewis-fdomino

It works for me.

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.

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.

Teamwork

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.

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.

http://www.yieldsz.com/

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

slides/indien%20sioux.html

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

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

ackerman32/webquest1/Al%20Forone.htm

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.




 

http://www.herbsarespecial.com.au/free-sprout-information/wheat.html

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.

Thank you for sharing your process.

Have you ever come across the term "limerence"?

best regards and have a great Christmas.

longing_for.htm

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,

airline%20passengers.jpg

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.

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).

memoirs/photos-html/father.html

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.

cards/chakra-arcana/

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.

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.

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).

Occasionally I accept a client.

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.

amer_pol_hist/fi/000001ee.htm

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 :-

2005:
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.

2006:
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.

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

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.

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

Hi Ed,

I am sending the San Diego TTID.

Thank you.
 

... 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.

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

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.

Ed,


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.

PDF file of interview

OK.

Wwaaaaaay beyond Lovely Hula Hands

http://www.videosift.com/story.php?id=79

Uke-cool-ele.

click here

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

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/

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 !

OK.

Assimilate

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.