Daily Speculations The Web Site of Victor Niederhoffer & Laurel Kenner Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.

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James Sogi

3/18/04
Sticky Hands vs. Flying Fingers of Fury

A Tai Chi Chuan beginning exercise called "sticky hands" is a useful tool to show timing, balance and coordination. Two practitioners stand facing each other in fighting stance, balanced, with eyes closed and touch hands one hand facing forward, one hand reversed, and constantly maintaining contact they move hands body and weight in a circular motion without moving the feet, advancing weight forward on side, and pulling weight and center back but always maintaining contact and being aware of the partner/opponent's intent instantaneously. The first to lose balance and move feet loses. In Brooklyn they called this one hand wrestling.

Recently I wrote about the "Flying Fingers of Fury" trading technique necessary for trading long in a falling market. At some point, the trend will change and as in shifting gears, it will be necessary to switch to the "Sticky hands" trading technique wherein one sticks to the positions longer to ride the trend rather than play the bounces. The concept of advancing and pulling back with the ebb and flow of the market and maintaining unity with the market without losing balance is more than mere navel gazing, but reflects a deeper understanding of the dynamics of the market than many fixed system/black box operators wish to face. Shifting back and forth as trends change is not simple but is part of the essence of the yin yang duality of the universe.

James Sogi is a philosopher, Juris Doctor, surfer, trader, investor, musician, black belt, sailor, semi-centenarian. He lives on the mountain in Kona, Hawaii, with his family