Cites of Ed Seykota-a great trader:mrtq13

1. (So you didn't have a clear exit point) In other words, the only way you could stop trading was by losing.

2. If you can't take a small loss, sooner or later you will take the mother of all losses.

3. There are old traders and there are bold traders, but there are very few old, bold traders.

4. Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.

5. I prefer not to dwell on past situations. I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities.

6. The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. Cutting losses. If you can follow these three rules, you may have a chance.

7. Trying to trade during a losing streak is emotionally devastating. Trying to play "catch up" is lethal.

8. I set protective stops at the same time I enter a trade. I normally move these stops in to lock in a profit as the trend continues.

9. One evening, while having dinner with a fundamentalist, I accidentally knocked a sharp knife off the edge of the table. He watched the knife twirl through the air, as it came to rest with the pointed end sticking into his shoe. "Why didn't you move your foot?" I exclaimed. "I was waiting for it to come back up," he replied.

10. Losing a position is aggravating, whereas losing your nerve is devastating.

11. I intend to risk below 5 percent on a trade, allowing for poor executions.

12. The trading rules I live by are: 1. Cut losses. 2. Ride winners. 3. Keep bets small. 4. Follow the rules without question. 5. Know when to break the rules.

13. Be sensitive to subtle differences between 'intuition' and 'into wishing'.

14.Everybody gets what they want out of the market.