This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Arthur L. Simpson, the author of Phantom of the Pits (published in 1997), was an independent trader and a long-standing member of the Chicago Open Board of Trade at the time of writing. He may still be trading, I am not sure. He said that he considered the Phantom of the Pits to be the best trader he knew and perhaps the best trader in the world. So, I am gonna listen to the Phantom. One thing I learned becoming a fighter pilot was that you learn from the best pilots. Your life depends on it.
I read some more of the book last night. This quote hit home:
“Your thinking should be: When your position is right, you have to do nothing instead of doing nothing when you are wrong!”
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
October 23rd, 2006 at 2:09 pm
Printing it now, thanks for the link!!!!
November 12th, 2006 at 10:58 am
[...] I was introduced to Phantom of the Pits [pdf] from Zoomie on movethemarkets. It has definitely had a positive influence on my trading in the last few weeks (and I’ve only read about 20% of it so far). I am much more aggressive with cutting my losses very short: The correct way to control positions is to only hold them once they proce to be correct. Let the market tell you your position is proven correct, but never let the market tell you that your position is wrong. You, as a good trader, must always be in command of knowing and telling yourself when your position is bad. In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! Positions established must be reduced and removed until or unless the market proves the position correct! [...]