- 1998: Volume 7, No. 2 Trader's Coach

Dear Coach:

I enjoy trading and I make a good steady living at it. Then, I read your article about trading and gambling, and quite frankly, I considered myself to be a gambler. I'm in this one for the fun of it and I admit it. I get a real charge out of trading. So, what's the problem if I make good money, keep my losses to a minimum and hurt no one.

A Gambler at Heart

Dear Gambler:

I hate to break the news to you, but you are not my definition of a gambler. You wouldn't be making money if you didn't take calculated risks as opposed to trading recklessly. Now, as far as getting your emotions involved in trading, most people who do, wind up on the losing side because they can't handle the emotional highs and lows. You apparently can. I would never debate with someone's technique when they are making money. So, call yourself a gambler, get the thrill of the trading emotional roller coaster and keep making money. Tally Ho!

Dear Coach:

My money management system has some built-in discretionary judgements which must be made. Some days I make these judgements a great deal better than other days, and when I'm on top, I have outstanding days. What can I do to increase my ability to make these judgements more accurately?

Swami

Dear Swami:

When you work on a system or methodology that is based on mathematics and computers, you increase your probabilities by refining those possibilities through backtesting and experience. When you use the human computer as a discretionary indicator to improve your probabilities, you must do whatever it takes to improve your physical, emotional and mental well-being.

Dear Coach:

Lately, I've been working on some honesty issues in my life in an attempt to clear up some relationships which I have badly damaged through my lies. This was not my idea but my therapist's. He thinks it will also help my trading. Do you agree and why? And how can I be more honest?

Honesty Seeker

Dear Seeker:

The past and future don't exist except for the strength that you give them in your mind. You only have the moment of now. Give truth to the moment of now and you will begin to transform yourself into a truthful person. If you don't believe in cause and effect, which is called karma, then you don't have to worry about the past. But if you do believe in karma, even if it comes in the form of guilt, then you must do an abundance of good deeds to overcome bad deeds of the past.