Praise for Trading from Your Gut

Living Mastery
When you are able to trade beyond your intellect and from your
gut, you will find that trading requires less effort. You won’t agonize
over decisions. You won’t spend as much time sorting through the
same information. You will have more time and energy to devote to
other tasks.
Mastery is a continuous process,
a path instead of a destination.
Mastery is a continuous process, a path instead of a destination.
The markets will change. Technology will change. Some things will
become harder. Some things will become easier. The middle way
will help you adapt to new environments, crises, and opportunities.
You will more easily find opportunities and the means to exploit
them.
When you find the middle way of the master trader, I suspect
that you won’t be satisfied with a purely rational approach to trad-
ing. You will prefer the speed and simplicity of the middle way. 
Trading with your whole mind is simpler, faster, better, and
more profitable.
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From the Library of Daniel Johnson

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159
CONCLUSION
The Art of the Trade
“The game taught me the game. And it didn’t
spare me the rod while teaching.”
—Jesse Livermore
From the Library of Daniel Johnson

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Trading…there is no substitute.
Practice helps. Computer research helps. Reading helps. Study-
ing individual charts helps. But at the end of the day, there’s no sub-
stitute for putting your money on the line and making actual trades.
The best way to begin the process is to open a trading
account and put some real money at risk.
So whether you are an experienced trader with your own proven
techniques who wants to learn to use your whole mind more effec-
tively in your trading or a new trader who is just starting the learning
process, the best way to begin the process is to open a trading
account and put some real money at risk. This is the only way that
you will be able to develop and condition your whole mind for the
rigors of trading.
Unfortunately, learning is a process that inevitably involves a lot
of failure. You won’t learn if you don’t risk enough to potentially fail.
So you must take the plunge and be prepared to lose some money
along the way. 
Sometimes the big losses are the ones that teach you the most. I
remember one trade in particular. It was 1987, the last full year of
the Turtle program. Silver ran up from $11 to over $15 in about a
month. Because we were breakout trend followers, we bought just
as the price made new highs slightly above $11. In Figure C.1, you
can see where we entered the trade and the subsequent price move-
ment up until my exit point.
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From the Library of Daniel Johnson

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