necessarily bad; it just doesn't have a great payoff. We traders do it with each other when weask:• How much did you make this month?• Did you go long the gold?• What kind of car do you drive?• Will you show me your P&L statements?• Can you give me someone who is using your approach profitably?• Did you know that this market is heavily oversold?All the above examples center on content rather than process. Both my scientific backgroundand my experience in trading have convinced me that the primary difference between winnersand losers is whether they focus on content or process.
ENDING YOUR STRUGGLE AND DANCING WITH THE MARKET
Most guys had this happen in high school. You ask a pretty girl to go to a dance and sheaccepts. Now you are in trouble! You fear you will make a fool of yourself dancing and notonly will she never speak to you again, but she will tell all the other girls in the school thatyou are a klutz. You practice with your little sister and your cousin before the date. When youget to the dance, you are determined to make the dancing work. You
to be a better dancer than you really are (you are content-oriented). But because you try so hard, you end upstepping all over your partner's feet. Your life is ruined; you were never meant to be anything but an other-handed klutz. If you could have only relaxed and become a bit more process-oriented, you could have pulled your partner close to you, she could have felt your movements, and you both would have appeared to be dancing with some skill. The key todancing well—and profiting in the market—is an ability to relax and simply go with the flow.That is what this book is about—
getting with the process;
letting go and going with the flow.This material will defuse much of the miseducation of modern technical analysis anddemonstrate the way the market really works and how to profit from that knowledge. When
was written several years ago, our goal was to take 80 percent out of a trendmove. We wanted to get in on the bottom 10 percent and get out on the top 10 percent of the price movement. In the intervening years, we have sharpened both our research and our strategy. Today, our goal is not to take 80 percent from a trend move but to take 300-500 percent of the trend move. Previously, if there was a 200-point move in a commodity or stock,we were well satisfied with 160 points in our pocket. Now our achievable goal is to bank 600to 1,000 points on that same move. Unbelievable? Not after you have read this book and seenthe results in your own trading.
ME OR THE MARKET
The average trader feels that trading the markets is a highly stressful occupation. Below aresome actual questions we have received from active traders:• How can I both enjoy trading and make profits trading the markets?• Why am I so addicted to doing this when there are so many disappointments (losses)?