Ed Seykota
Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals.” However, if you catch on early, before others believe, then you might have valuable “surprise-a-mentals.”
Ed Seykota
The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system. There are old traders and there are bold traders, but there are very few old, bold traders.
Ed Seykota
Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible.
Gary Bielfeldt
I learned how to play poker at a very young age. My father taught me the concept of playing the percentage hands. You don’t just play every hand and stay through every card, because if you do, you will have a much higher probability of losing. You should play the good hands, and drop out of the poor hands, forfeiting the ante. When more of the cards are on the table and you have a very strong hand–in other words, when you feel the percentages are skewed in your favor–you raise and play the hand to the hilt.
Gary Bielfeldt
The most important is discipline–I am sure everyone tells you that. Second, you have have patience; if you have a good trade on, you have to be able to stay with it. Third, you need courage to go into the market, and courage comes from adequate capitalization. Fourth, you must have a willingness to lose; that is also related to adequate capitalization. Fifth, you need a strong desire to win.
How did he do it? Bielfeldt does not believe in diversification. His trading philosophy is that you one area and become expert at it.
Paul Tudor Jones
Everything gets destroyed a hundred times faster than it is built up. It takes one day to tear down something that may have taken ten years to build. If the economy starts to go with the kind of leverage that is in it, it will deteriorate so fast that people’s heads will spin. I hate to believe it, but in my gut that is what I think is going to happen.
Paul Tudor Jones
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your trading volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you always get back in. There is nothing better than a fresh start.
Don’t be too concerned with where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day.
Paul Tudor Jones
First of all, never play macho man with the market. Second, never overtrade. My major problem was not the number of points I lost on the trade, but that I was trading far too many contracts relative to the equity in the accounts that I handled
Richard Dennis
It is a little bit like playing golf: You can throw your clubs around after making a bad shot, but while you are making the next shot you should keep your head down and your eye on the ball.
