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weiwei

Phantom of the Pits

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First of all, this is not a book in traditional sense, but a interview with a pit trader who wanted to be called Phantom. Best of all, it is free. Do a search on google on "Phantom of the Pits" to download the PDF file.

 

Review:

 

Phantm who has been trading for 30+ years and now wants to give back to other traders on his view on what is a better way to trade, especially for small traders.

 

He gave out his 3 trading rules that he follows and those interviews reveal his market insights.

 

Here are some questions answered by Phantom's insights.

1. what is the Important aspect of trading?

 

2. you need 2 trading plan for entries, and why do you need 2.

 

3. His view on daytrading, and how to apply his rules.

 

4. Many market condition, such as, how a fund bid a market so they can sell the market. what should you do.

 

5. Is market always correct? not so by Phantom.

 

 

when he gave out his rules, he went into great details on why he use them, the psychology behind these rules. and the benefit of his rules. Better yet, his rules can be a great enhencement to any trading system.

 

If you are new to trading or struggle with trading. The read this book as many as it take for you to understand the contain totally.

 

If you are a experience trader, then his insight would enhence how you approach market.

 

 

there are many others, too many for me to list it out. I am very sure every trader can find somethings useful toward his trading.

 

I read it once about 18 month ago, and now re-read it again, and wow I am totally overwhelm. so much good info in this book, I only wish I had internalized some of his insights.

 

The difference between now and then was that at then, I just read it and did not take time to sit down and digest the contains and think them over, now with 2nd read, and carefully thinking his insights over, I truely appreciate Phantom's insights and his willingness to share.

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Heres the link to the free ebook: http://www.spytrdr.com/PhantomOfThePits.pdf

 

I am sure there are other sites that offer this for free.

 

One particular quote early in the mini book I found interesting:

 

ALS: To you, what is the most important aspect of trading.

POP (Phantom of Pits): Behavior modification, without doubt, is the key to trading success -- not only in how we think but also how we act in certain situations. We must adapt to changing situations over which we have no control. We must change the situations over which we do have control.

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Thanks for remembering Phantom's Gift. I am working with Art Simpson to publish a new updated version in the future. Time element being the main slowdown.

 

thanks,

 

POP

 

 

Hi Phantom,

I have been reading about your methods for years, it is a true pleasure to see your post sir.

 

Many Regards,

email

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Thanks for remembering Phantom's Gift. I am working with Art Simpson to publish a new updated version in the future. Time element being the main slowdown.

 

thanks,

 

POP

 

Great to have you on board with us POP.

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This is without a doubt the one book that turned it all around for me. I was participating on the boards at "Futures" when POP started posting. IMO this is one book that you should re-read at least once a year.

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From Phantom of the Pits:

 

"So here is Rule Number one:

In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.) Positions established must be reduced and removed until or unless the market proves the position correct! (We allow the market to verify correct

positions.)"

 

Changing our thinking from the majority of traders and knowing that trading is a losers' game and not a winners' game, I want to learn to be wrong fast and without hesitation and face the pain of a losing position with behavior modification that acts unlike the majority of traders. It is so hard to act like the 5% that know it is a losers' game.

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Guest forsearch

I suppose this is the same as saying "Cut your losses short, and let your winners run."

 

Too many of us (myself included) tend to do the opposite, despite knowing better.

 

-fs

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I have read versions of the document twice and would advise anyone reading it to realize that like most good trading strategies it is one strategy that suits particular markets, timeframes, and men (man).

 

The "Positions established must be reduced and removed until or unless the market proves the position correct" rule is a perfect example of this issue. I see lots of people start off with this sort of approach typically by snugging stops up to be+ or getting out because "its not going my way." This works for some people with some entries I'm sure but most seem to strangle their trades this way - and the trade having been killed, the market then proceeds to go on to its target without them.

 

Its an interesting read but I recommend you evaluate your strategies trades carefully before you apply this or any other idea to them.

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I suppose this is the same as saying "Cut your losses short, and let your winners run."

 

Too many of us (myself included) tend to do the opposite, despite knowing better.

 

-fs

 

I re-read it today after this thread was woken up. Subtlety but importantly different to that oft quoted rhetoric. I would recommend reading the whole thing, if you carefully read Rule 1 is not cut your losers short. It is to scale out if the market is not moving in your favour, this is different to waiting for it to move against you and hitting your stop.

 

The two rules are really mechanisms to bring about changes in behaviour which is what is the real key is.

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POP

I would like to have two copies made.

However I need permission to have it copied.

I tried emailing Art Simpson to get permission,

but emailed bounced back. He has a copyright on

the PDF file. I wanted to have a copy printed and

spiral bound.

Any help.:)

Thank You

Barry

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POP

I would like to have two copies made.

However I need permission to have it copied.

I tried emailing Art Simpson to get permission,

but emailed bounced back. He has a copyright on

the PDF file. I wanted to have a copy printed and

spiral bound.

Any help.:)

Thank You

Barry

 

Barry Art's email has changed. You can reach us at

phantom-of-the-pits@comcast.net

We just happened to see your post by accident in documenting interest of the book over the years. Thanks for your post.

 

You have permission to copy, print and spiral bound "Phantom's Gift" e-book.

Eventually we will get that book published but currently we are working on an updated book.

Thanks for your interest,

 

POP

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Hi Guys

Many thanks POP for the free book. I personally have found Rule 1 and the mindset around it to be an excellent tool in my own trading.

On Rule No 2 I feel I persoanlly need more experience in trading seeing whats ahead in the plan. And of course bigger kahunas !

Once again a great book from a grateful admirer.

 

All the Best

John

 

ps thanks Weiwei for starting the thread

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