Mark Ritchie - My Trading Bible: Lose Your Shirt. Save Your Life. Keep on Trading: Insider Secrets to the World of Stock Market Investing

MY TRADING BIBLE

By

Mark Andrew Ritchie

Introduction

MY TRADING BIBLE

LOSE YOUR SHIRT, SAVE YOUR LIFE, CARRY ON TRADING

MARK ANDREW RITCHIE

Copyright 2015 by Mark Andrew Ritchie

Digital Edition

All rights reserved. Written permission must be secured from the publisher to use or reproduce any part of this book, except for brief quotations in critical reviews or articles

Photo on cover courtesy of Milwaukee Sentinel (captured after the Soviet grain embargo)

Unless otherwise noted, all Scripture quotations are taken from the Complete Jewish Bible, Copyright 1998 by David H. Stern. All rights reserved.

DISCLAIMER

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representations is being made that any account will or is likely to achieve profits or losses similar to those shown.

In commodity trading there can be no assurance of profit. Losses can and do occur. As with any investment, you should carefully consider your suitability to trade commodity futures and your ability to bear the financial risk of losing your entire investment. Do not assume that the theories, systems, methods, or indicators presented herein will be profitable or that they will not result in losses.

The information contained herein has been obtained from sources believed to be reliable but cannot be guaranteed as to accuracy or completeness, and is subject to change without notice. The risk of using any trading method rests with the user.

ISBN: 978-0-9646952-0-7

Island Lake Press

Box 710

Island Lake, Illinois 60042

Introduction

A llow a word of explanation . Originally this book had the title, How to Lose a Fortune and Avoid Suicide. That explains why publishers insist on the right to the title. It also explains the direction of some of the content. While many of you could not deal with such a title, others of you have praised it. One person who had close experience with suicide said, Its about time someone had the courage to use that word in a title. Nevertheless, the title has gone down with a thousand insults. But it has been recovered for the opening chapter. BTWthe publishers have creative control over the chapter titles as well. Well see how long it survives there. Well, marketing constraints are a reality. But the severe trauma of our industry is also a reality. Regardless of the title, we will not overlook the theme.

The process you are beginning has required me to review almost forty years, if I leave out the gambling part. Quite by accident, and surprise, it is possible that I have stumbled across that elusive trait that makes a winning trader. Dont even think about asking me to mention it here. Cmonfocus! Theres a lot to cover before giving up that oneand I have no confidence in it anyway; its a mere speculation. But to satisfy an ounce of your curiosity and start you thinking in the traders direction, Ill mention what makes a losing trader. That would be the urge to learn what makes a winning trader in the intro and save the trouble of going through nine chapters. I am sorryup front honesty is one of those indispensable traits.

Speaking of indispensable, whether you are a trader of not, one must have a support group. Steve Van Rooy not only began insisting on this book, but also did the invaluable follow through to see that it got finished. Wheres that next chapter? will be ringing in my ears for some time to come. Without his inflicted grief, you would not be reading this.

One more grief-inflicter of note, from half way around the world: Tad Drew encouraged, edited, simulated covers, and generally stayed on my case until completion. If you are endowed with my shortcomings, you enjoy talking about your dreams but never actually quite git r done without someone to take on the solemn role of applying the boot to the posterior. And many thanks to everyone else as wellfirst my amazing woman (cf. chap 5 and back cover), Mark II for contributing a chapter, Peter Brandt for critique and encouragement, my cousin Dr. Kurt Free, Mike and Kathy Fisher, Annette Ross, Rick Cordell, Pamela Smotherman, the late Neil Knudsen, the late Larry Burkett, Prof Norman L. Geisler, and still after all these years, my inspirational class of 66.

How to Lose a Fortune and Avoid Suicide

M y wife longed for the five acres next to our house. Actually, we had already purchased the five acres on one side, but she wanted a little more space on the other side. Well, to be honest (honesty will rear its questionable head in this book), I wanted it just as badly; admittedly, all my places (Oregon, Texas, Afghanistan) had open spaces that didnt cost a fortune. We were slightly familiar with the land developer who sold us the lake front lot where we had built a few years earlier. Since we had bought the extra five acres on one side from him, we now intended to buy the other lot. I asked my real estate broker to make an offer, which he did. The developer countered with an extremely high price. One could have called it ridiculous. But you probably already know that one persons ridiculous is another persons value. However, values can change. If that is news, you have picked up the wrong book. Sometimes they change fast enough that ridiculous is the only word that applies.

So I ignored his counter offer and within a few days he gave my agent a lower counter. Now things got interesting. I countered his counter with an offer that was lower than my initial offer. I already told you, markets change. And BTW, these days we are the happy recipients of a class of real estate agents who refrain from telling us that real estate cant go down in value. But I can promise you that we have only a few more years to enjoy this state of enlightenment on their part.