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.
I believe that we should own the fruits of our labor and the assets of our creations.
I walk by studio heads and they actually look and put their hand out now, like maybe I should be on their radar.
We tell ourselves that skill is the precious resource and effort is the commodity. It's the other way around. Effort can trump ability-relentl ess effort is in fact something rarer than the ability to engage in some finely tuned act of motor coordination.
A man attains greatness by his merits, not simply by occupying an exalted seat. Can we call a crow an eagle (garuda) simply because he sits on the top of a tall building.
All I set out to do was to earn a living playing drums, you know? And as luck would have it, I've surpassed that.
If you do everything that everyone else does in business, you're going to lose. The only way to really be ahead, is to 'be different'.
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