Extract

1. Your stop loss that results in a small loss is your insurance policy against large losses.
2. Risk is always managed because the future is always unknowable.
3. Highs, lows, and moving averages are not signals they are simply tools to create price trading systems with.
4. Overbought & oversold indicators are not stand alone signals to fade a move.They primarily show how a risk/reward ratio is starting to shift
5. Just because a market is overbought doesn't mean it is a short selling opportunity. It can just go sideways. Markets don't always trend.
6. Never trade so big that you can hurt yourself. Small & steady can still win the trading race.
7. Positive thinking won't make you a profitable trader but it will make you better at doing the things that do make you a profitable trader.
8. "you should wait for a trade and not look for a trade"
9. "Stock trading is rocket science, you find a rocket & ride it.” -Steve Burns
10. Focus on great trades not perfect trades.
11. Trend trading profits come from the magnitude of the wins not the accuracy of the signals.
12. The single most important advice I can give anybody is: Learn from your mistakes.That is the only way to become a successful trader.
13. “Your true wealth is a direct reflection of how much value you give others”
14. “The secret of change is to focus all of your energy not on fighting the old, but on building the new.”
15. “Bear markets have no supports and bull markets have no resistance.”  -William Eng
16. “Monster stocks have no long term resistance and  stocks in a death spiral have no long term support.” -Steve Burns
17. There is no 'secret' to trading success. You just have to create a trading system & follow it with discipline consistently.
18. Always remember: Your most dangerous trade is the one that you think you can’t lose. It makes you trade too big, be overconfident, sloppy, greedy, and not use stops.
19. Many times the trade you are the most confident in is also the most dangerous due to your conviction & difficulty in taking your stop loss.
20. Different types of signals work in different market cycles.Momentum signals fail in choppy markets.Trend signals fail with rangebound prices.
21. I have come to believe that successful trading is simply putting on good risk/reward scenarios with the right position size.

22. Profitable trading is built through big wins & small losses or on a high winning percentage, not perfection.

23. Drawdowns in trading capital will be temporary if your position sizing is right.

Ed Seykota's trading rules: Cut losses Ride winners Keep bets small Follow the rules without question Know when to break the rules


Good trading is usually just a waiting game.
Waiting for an entry signal Waiting for a break out Waiting for a trend Waiting for a move


I Am A Profitable Trader Because....
I have an Edge I Define Risk I Accept losses I Trade With Discipline I Trade Price Action I Persevere

Trading steps from 1. Believe in Yourself 2. Control Risk 3. Patience 4. Humility 5. Reward


10 reasons most traders lose money:
Greed Ego Fear Stubbornness Hope Ignorance Trend Fighting No Plan No System No Homework



10 reasons traders make money:


Winning system Trading Plan Entry signals Disciplined Position sizing Stop loss Exit signals Repeat


Trading Plan = Lots of Study

A watch-list Correct position sizing Stop losses Entries Trailing stops Price target Exits Records Discipline


Fastest ways to go broke trading
Trade too big Trade too much Trade with no plan Trade emotionally Trade with ego Fight trends


This market has: No momentum No follow through No trend Danger Lots of chop Lots of risk Little reward No rhyme or reason


Hallmark of a Pro Trader: Follow your plan Keep bets small Journal your trades Stay disciplined Know when you're wrong


What causes you to lose:


1) too high expectations 
2) daily & weekly monetary goals 
3) being glued to P/L 
4) not reviewing trades 



be happy: have a sense of wonder help others read books do things you're good at face your fears

Path to happiness:

Small debts Good cash flow Right life partner Eat healthy Inner peace Goals Work on what you love Learning

Patience pays: Waiting for an entry signal Waiting for a break out Waiting for a trend Waiting for a move
I know people like trading to be an exciting but often, great trading is a slow waiting game that pays massive returns with patience.