givinji thorn up, is lil<e jumping into the unknown, which is scar>. Change is so scary il is often easier to repeat our unwanterl hahits, even if that nieans losing money year after year.

The only thing Ive found for changing the mind and ego is experience. When we experience something, then we know, and assumptions are no longer necessary. By experiencing something other than what we are accustomed to, the new experience provides a new impression to replace the old one with. By repeating the new experience, gradually the old one is replaced. Now the mind has a new habit, one that is successful instead of destructive.

Our firststep is to be honest enough to look at what the mind and ego have become. Second, by being honest, we get toexperience whom we have become, and by gaining new experience, we have (he opportunity to change. Third, by repeating new experiences we form new habits. In my own tradi ng experience, once I realized the mistakes I was making, and saw the numerous fears I had in executing my own system, I moved from not executing any system trades to mixing system trades with my impulse trading. When I looked back over my trades, and sorted Ihem into two groups, those generated by my system versus those generated by impulse, my system was profitable and almost all impulse trades were losers. By going through this process a number of times, gradually I found myself executing only those trades generated by my system. As I saw my trades become successful, my confidence increased. Old patterns and habits had been replaced by new, more profitable ones.

On occasion Ill do a self analysis study to better understand and improve my trading, rollowiflg is one pf those studies:

Consequetices of My Assumptions and Fears During Two-Month Trading Period

Trades Missed All-Tofleffier

Got Out Too Soon

TiHdsd Against The Major Trend

Did Not Move The Protective Stop To Neutral

. , tviet difference in my trading accoum:

$10,500 I dkl not earn because I did not execute on the assumption that tliese trades would not have worted. $-2,800 I lost unnecessarily by trading connjrily lo guidelines estabhslifd for myself.

When adding the dollar amount of the trades I did not execute to the foregone profits from my mistakes, the total comes to $13,300 in two months. I marked each of these trades on a chart so that I could easily see what I had done. Missing out on $ 13,300 in two months was a big disappointment, but it helped me gain confidence in Symmctiy Wave and start to take all the trades it generated.

I realized by repeating positive action (i.e. - adhering to personal guidelines for successful trading) enough times, I could replace my old habits with new.

Trading the markets will bring the weaknesses that are hidden within each one of us to the forefront. This is a significant benefit of trading. It forces a trader to give up assumptions and to become practical. Maintaining a daily journal detailing which assumption kept you from executing an aspect of a trading system will help you give up negative or erroneous assumptions and become more practical. To succeed, you often have to give up (or change) many assumptions, and learn to just practically apply your knowledge of trading.

stress

External control can be defined as the self-imposed conditions or parameters a person sets for trading the markets. Some external controls are: when to enter the market, how much to risk, when to take a profit, and how many contracts to buy or sell for each trade. By contrast, internal control is how we react emotionally and intellectually to the unknowns associated with the market. Questions that are unknown in trading include these:

1. Will the system l am following be successful in ttie next few months?

2. Should I stay with this system after four losing trades?

3. Corn looks like a buy, but soybeans look like a sell. Since they tend to move in conjunction, which way should I trade?

4. Should I wait a little longer and thereby miss a profitable trade, or jump in now?

5. Should S use a tight stop or wide stop?

6. Should I take my $400 profit now, or rJo I wait longer and shoot for a $1 ,() profit?

Obviously, for each of these questions (and countless others raised daily when trading) there is no one correct answer. Regardless of the choice made, the outcome of that specific decision is unknown. Stress arises when one has to make a decision between two or more choices and the outcome of either choice is unknown; or, having made a decision, stress arises when you have no control over the outcome. Since each one of the above questions requires a decision, and since the decision is based on unknown outcomes, a trader continuously faces stress. Stress is a natural defensive reaction. Science tel!s us when under stress there are specific biochemical reactions, such as a release of hormones, which as a defensive measure of tlie body causes one to react. Besides the biochemical component of stress, there is the mental component, worry.

Worry involves concern about ones decision and its consequetices. Every time a decision relating to trading has to be wade, there is a sufeequent tendency to worry about the unknown consequences. Without a doubt, worry impirs analytical thinking. This means we giveup being practical and become assumptive. Also, the amount of worry associated with trading the market substantially increases stress. Then, to abate the constant mental duress caused by worry, a person tends to make any decision that will appease stress.. And.even a decision not to do.

substamiaily increases stress. Then, to abate ihe constant mental duress caused by worry, a person tends to make any decision that will appease stress. And even a decision not to do anything still has unknown consequences and carries with it potential stress. Why? Because a missed opportunity to make $1,500 can also be quite stresslul.

I have found that many traders mirror the market. This is most likely due to the need to appease worry and stress, if your most recent trade was stopped out prematurely due to a tight stop, the worry that on the next trade the same thing will happen often leads to the use of a wider stop. Often the reverse also happens, whereby a person loses a big chunk of money because of an excessively wide stop and is then afraid to use a wide stop for the next trade. The important point is not whether to use a wide or tight stop, but to have the proper internal control so that the stress level does not nile or cloud decision-making. It is the reaction to worry and stress that causes one to fail more than anything else in trading. When you add "greed" inio the mix, with its mistaken emphasis on speed over consistency and patience, its no wonder there is such a high failure rate among traders.

Psychologists are finding that incentive iinpairs human performance by focusing attention on the outcome (in this case, to make money or lo preserve money) rather than the solution. The solution for us as traders lies more on internal control rather than external control. Internal control is achieved by recognizing the influence of worry, greed, stress and assumptions; and to adopt a set of new altitudes towards the markets so that the ever-changing market conditions do not overpower you as a trader. The easiest way to change is to repeat the right action over and over again until old habits and impressions are replaced by new.

It is logical to conclude that internal control and external control are intertwined. If some degree of internal control is not achieved, then under the influence of stress a person is likely to follow his predetermined set of external controls (i.e. - entry price and exit price). On the oiher hand, if one does not have a set of prec/eterm/necf external controls, then a person continually has to make a stressful decision.

By following the Symmetry Wave trading rules, executing each aspect of the method repeatedly and consistently, new successful experiences will force out the old habits of worry, stress and incorrect assumptions.

A technique that helps in reinforcing and motivating a trader to execute his trades is visualization. Visualization is really just romemberi ng. Remember why you chose a specific size protective stop or profit target, remember why you chose early entry over late entry and remember how it feels to win over a period of time. Remembrance or visualization motivates, but the real change happens only by executing the right habits. By experienc/ngthe impression and feelings, new habits replace the old ones.

GENERAL OBSERVATIONS

1. Regardless of the trading system used, approximately 30% of winning trades move extensively in ones favor immediately. What this means is lhat the best trades often do not give a second chance to execute them. You must put all your entry orders in before the market reaches the entry price.

2. Experts, whether we talk about newspapers, brokers, advisors or some other type of guru, are not necessarily belter than the layman. They are only more knowledgeable in the mechanics of how things work. Therefore, if you have studied Symmetry Wave (which

takes the randomness out of the markets, and organizes them) then you could become a greater expeii.

3. If you acquire too many positions in relation to your comfort level, then the increased level of stress will often cause you to overlook or bypass several key aspects of your trading program, including the entry guidelines and protective stops.

4. I have tested many systems with upto900 variations of profiUargets and protective slops. The most profitable combination couid earn $60,000 or more, while the worst combination might lose $60,000 or more. Avoid curve-fit mechanical systems like these whose parameters can be manipulated. You will find Symmetry Wave to be far supwtor, as it is an organizational method that uncovers balance points. It is not a rigid mechanical system, but rather an intelligent, adaptive one.

5. 115 15 1 1 1 patterns every six months to a year. This material shifting in behavioroften wreaksbavoc on mechanical systems.

6. Trading frequently is not necessarily more profitable. People who trade less often tend lobe more successful. Abroker friend told me he had one client wail a year before putting on a position. That market was at historical highs, then dropped rapidly. The man made over $200,000 and stopped trading.

7. Weekly charts give an excellent overall perspective of a given trend.

8. Most major trends last six months or longer. Vou can and should take advantage of the sizable corrections which occur within that time period,

9. It is counterproductive to day-trade more than one market.

10, Avoid the market noise (small price fluctuations) and concentrate on the waves that are at least one times the ATR." Also, try not to pay attention to what you do not need. More information tends to create confusion.

11. After a drawdown, the average recovery period for mutual funds is about 27 months. Many futures funds also experience long recovery periods after a drawdown.

1 2. Five-minute harcharts yield the worst profit-to-loss ratio. Weekly charts yield the highest profit-to-loss ratio.

13. Try to give up past assumptions about the markets. Symmetry Wave fixes your focus, instead, on a unique aspect of analysis (the matching of retracement waves) not on where and bow markelsclose, or volatility or price patterns. As an example of acting on different assumptions with Symmetry Wave, I have, on occasion, entered markets when they retraced three times the ATR in one day, with the market closing at its low of the day. The next day the market almost inevitably starts to rally.

14. Avoid basing your next trading decision on what may have happened on your previous trade; If you base trading decisions on what has happened in the past, then you will be

constantly adjusting the entry method, protective stops and profit targets. There is no ideal.

15. Many traflets take a profit at their profit tatgit, thrn, when they see they could have n-iade a greater profit, cuise themselves, iliats a terrible way to iive. Willi a negative outlook, even if you are a winner, you make yourself led like a loser.

16. By testing many computerized systems, Ive found that even with a high accuracy trading system, there are many strings of five to six losses.

17. With Symmetry Wave, even when trading similar markets such as Deutsche Mark and Swiss Franc, or Exxon and Mobil, pay attention to each individual markets unique signals. Often it happens that the Deutsche Mark tTtay reach its symmetry price, while the Swiss l-ranc may not.

18. Focus on resuks, not from just a few hours or days, but from several months to a year.

19. The assumptive nature of the mind and ego must be considered so that unwanted fear can be avoided.

20. Fear of losing tends to keep traders out of the markets, while fear of missing a trade causes traders to jump into a market before it is tinie to do so.

21. For most people it is a false assu mpiion to believe that they can do better by watching the markets throirghout the day.

22. The vast majority of system? are curve-fit to past data. These systems only work for shon periods of time, usually lasting four to twelve months before entering into a cycle when they do not work for four to twelve months.

23. Do not adjust a method that is already working, and make sure any adjustment is paper traded first.

24. The formula for success in trading is 5( / self-analysis, 25 money management and 25% a good system.

25. If your account is overloaded with trades, the additional stress niay cause you to not follow your own parameters.

26. A peculiar phenomenon about the markets is that time appears to be condensed. The markets have great leverage and can generate phenomenal profits. This creates the illusion that what should be achieved in six months, a year, or even several years is expected to be .achieved not only in a week, but every week,

27. Three areas within which the mind will create assumptions are entry, exit and protective Slop placement. Set your parameters in advance, and make the ability to follow your parameters your enjoyment,

28. Keep a daily diary of trades, recording the thoughts or belief--j thai made you follow for notfollow) your entry, prr)lective slopand profit target guidelines,

Fills, when tradingthrougl, a discount broker, arc not saiisfartor-. In addition, fills al Nr-w York exchanges are consistently worse than with the Chicago cxchanccs.

Consistency in repeating a positive experience is the key to forming new habits and

1 Z ! " ° and to understand the intricacies

Symmetry Wave trading.

::ies of

For more information on additional Symmetry Wave products and services, Michael Cur can be contacted at this address:

Michael Cur Symmetry Wave Trading 1 70S 14lh Street, #277 Boulder, CO 0O3O2

Phooe: 303-449-4601 • 303-595-5896