What wins championships in football? It is said to be a great defense is the main component of a championship football team. In football you win by scoring more points than the opposing team, this is much easier on the offensive side of the ball for a team if the defense keeps the score low. […]
Trading is all a manner of taking a position because you believe the odds are on your side and that it will move in your favor and you will make money. That is what the stock market is all about whether you are a value investor, swing trader, or a momentum trader. The reason trading
The Best Bet in Trading Read More »
The markets are no place to be unsure of yourself and be wishy-washy. It’s not a place for second guesses, wishing, hoping, or gambling. If you want to win in this jungle, you need to be an unstoppable beast. Complete confidence in your system and method. You do not jump around in your trading
Rich Trader Ed Seykota Interview Van Tharp: Have you played around with any other significant ideas in terms of position sizing besides market’s money? If so, what are they? If you could give me ten rules to consider with respect to position sizing what would they be? Ed Seykota: “Playing around” with “when market money
RISK Isn’t Just a Game, in trading it is THE GAME Read More »
A book review for: TREND COMMANDMENTS by Michael Covel This book is based on the author Michael Covel’s extensive 15-year study of the world’s top trend following traders such as Ed Seykota, Paul Tudor Jones, the Turtle Traders, Larry Hite, and many others. This is not a book filled with Mr. Covel’s opinions, as it’s
Thou Shalt Follow the Trend Read More »
The trend is your friend until the end when it bends. -Ed Seykota A little Trend Trading When you have an edge in your trading system your wins and losses will be distributed at random. You will not know when you will catch the big trend or big reversal and win big. If historically you
You win some you lose some Read More »
In trading, money is simply made by making more money when you are on the right side of the trade than you lost when you were on the wrong side. That is rarely understood. Even many of the best traders in the world only win 50% of the time or less. In baseball the pitching
Try, Try, again. It is important in trading to never get overly discouraged with consecutive losses or draw downs in equity, this is a normal part of the business. I once had a 50% draw down early in my trading career when I did not respect risk, but came back and quadrupled my capital over
When at first you don’t succeed…. Read More »
Decisions, Decisions, Discretionary Trader vs. Systematic Trader Discretionary Traders trade information flow, while Systematic Traders trade price flow. While discretionary traders are busy trying to digest what fundamental news and information mean, systematic traders are taking the signals they are getting from actual price movement in the market. Systematic traders are not thinking and predicting
Your Opinions or A Proven System? Read More »
Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible. -Ed Seykota Traders can make psychological mistakes that can quickly endanger their career. Here are a few examples: They take on more risk than they can deal with. When stress takes over, traders start making bad
You Are Not Your Trade Read More »