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.
Interpretation
Good trading relies heavily on the ability to cut losses effectively.
This quote emphasizes the importance of risk management in trading, specifically focusing on the necessity of cutting losses to preserve capital. Ed Seykota suggests that by adhering to this foundational principle, traders can improve their chances of success in the market.
In practice
This quote could be shared in a trading seminar to emphasize the critical nature of managing losses.
If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it's coming in, it'll never happen. The market is always right.
Charting is a little like surfing. You dont have to know a lot about the physics of tides, resonance, and fluid dynamics in order to catch a good wave. You just have to be able to sense when its happening and then have the drive to act at the right time.
Prosperity is the fruit of labor. It begins with saving money.
There has never yet been a man in our history who led a life of ease whose name is worth remembering.
If the 'Post' can play the role of a connector between the West and the East, I have confidence in the paper's future success.
I think people have learned that Herbie Hancock can be defined as someone that you won't be able to figure out what he's going to do next. The sky is the limit as far as I'm concerned.
Its not about passion. Passion is something that we tend to overemphasize, that we certainly place too much importance on. Passion ebbs and flows. To me, it's about desire. If you have constant, unwavering desire to be a cook, then u'll be a great cook.
I didn't think I would have an Olympic medal at 21, but I knew I would give my best and play my game. I just viewed it as my first Olympics and that I would take it one match at a time, but to bring a silver home made me very, very happy.
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