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 let my racket do the talking. That's what I am all about, really. I just go out and win tennis matches.
The Enemy of the best is the good. If you're always settling with what's good, you'll never be the best.
Good players create opportunities. The great players and the great people seize them
You're standing onstage in a sold-out arena with people singing your music, and you feel like the loneliest person in the world. Because here's a party that, essentially, it's for you. And you still somehow feel like you don't belong there. Those people all have their lives and go back home.
To be successful, you must act big, think big and talk big.
I won at every level - all the way since I started playing the game of basketball at nine. I've won at every level, won championships at every level. And, you know, it won't be fulfilled until I win at the highest level.
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