I Broke the Rules

Today, I several of the laws that govern this kingdom of trading:

1. I traded against the dominant trend in almost all the higher time frames. I was so sure that the sharp reversal for soybeans would be corrected that I took a long position in soybeans, and when it didn't confirm, I held that position. It is now down significantly.
2. I didn't obey Phantom's Rule #1. I didn't exit when it didn't prove correct.
3. I traded against the underlying trend and then held my position. 
   

"the truth of all things"

Moroni 10:5 And by the power of the Holy Ghost ye may know the truth of all things.

"all things" -- this would include how to place trades, which trades to take, etc. I ask for the spirit of discernment to find and take the best trades. I also ask for the courage to take them without hesitation.

"You have your agency, and inspiration does not -- perhaps cannot -- flow unless you ask for it, or someone asks for you.
No message in scripture is repeated more often than the invitation, even the command, to pray -- to ask.
Prayer is so essential a part of revelation that without it the veil may remain closed to you. Learn to pray. Pray often. Pray in your mind, in your heart. Pray on your knees."

President Boyd K. Packer, Personal Revelation:The Gift, the Test, and the Promise, Ensign (CR), November 1994, p.59

I need to pray for success! I need to pray for courage to take trades. I need to pray for discernment to see and find good trades! I need to pray for help with hesitation. I need to pray for faith!

But that is not enough. Elder Packer also said:

But that is not all. To one who thought that revelation would flow without effort, the Lord said:

“You have not understood; you have supposed that I would give it unto you, when you took no thought save it was to ask me." Ibid

Young people, carry a prayer in your heart always. Let sleep come every night with your mind centered in prayer.

(Elder Boyd K. Packer, Prayers and Answers, Ensign (CR), November 1979, p.19)

Bounds and Conditions

D&C 88:38
38 And unto every kingdom is given a law; and unto every law there are certain bounds also and conditions.

Russell M. Nelson, Living by Scriptural Guidance, Ensign (CR), November 2000, p.16
And unto every kingdom is given a law; and unto every law there are certain bounds also and conditions. We learned laws that pertained to the kingdom of our concern and mastered control that had previously been relegated by ignorance to chance alone.

"...there are certain bounds beyond which he cannot ass with impunity. This conformity to home conditions can be easily obtained..." David O. McKay

D&C 130:21
21 And when we obtain any blessing from God, it is by obedience to that law upon which it is predicated.

Some of the Immutable Laws of Trading

Today I posted a comment to help a fellow investor/trader on Marketwatch.com.
Here is an excerpt of my comment:

"One of the cardinal rules I use in trading is called Rule #1 from a book by a very successful trader (who, by the way, gives it away FREE):
"Rule #1: Assume it is a bad trade until proven correct! Positions established must be reduced and removed until or unless the market proves the position correct. (from Phantom's Gift -- see my blog site for more info on the book -- absolutely at no cost whatsoever.)
"This rule has saved me a lot of pain, and has ironically also made me a lot of money! Not only is maintaining a losing position bad for my pocketbook. It is bad for my emotional state and it gives control of my money to the market instead of me keeping control of it in my hands."

If you'd like to read my entire comment, including some other laws of trading, you can read it here:
Treasuries Rise Again

The essence of Rule #1 is that you only stay in a trade if it is a profitable trade within a reasonably short period of time. All other trades are exited quickly! You don't put on a trade and then sit around praying that it will make money, all the while waiting with white knuckles and baited breath. By doing this, I save not only my money, but my sanity! I also guarantee that I will have money to trade another day!

Phantom's Gift - one of the best trading books -- and it's FREE!

Here is a link to a document that I downloaded (it is free) from the Futures Magazine website:

http://phantomsgift.4shared.com/

This document is my Bible of trading. It doesn't teach technical analysis or trading methodology, but is more about the immutable laws of trading success and trading philosophy. It is written (it is done interview style) by Phantom, a veteran futures trader who has made great sums of money in the futures markets.

I believe that in every realm, there are laws that control success in that realm. Phantom's Gift teaches many of those laws. I will, from time to time, refer to the "Rules" taught by Phantom in his book, as well as other laws that I have learned.

I met Phantom years ago in a forum for Forex traders. He became what I considered to be a mentor, but I eventually lost track of him and haven't had any contact with him for about 3 years or so. I would very much like to renew acquaintance, if anyone knows him and can help me renew our friendship.

By the way: this shared folder is hosted by 4shared.com, a wonderful website for sharing files. You can open an account with them yourself by clicking on the link below my profile at the right side of this page.