"LOVE TO LOSE MONEY"

LOVE TO LOSE MONEY.

This rule is the one that I get the most questions and feedback on by traders from all over the world. Traders ask, “What do you mean, love to lose money. Are you crazy?”
No, I’m not crazy. What I mean is to accept the fact that you are going to have losing trades. Get out of your losers quickly. Love to get out of your losers quickly. It will save you a lot of trading capital and will make you a much better trader. 

H&S top on weekly closing price chart

"DON’T SPECULATE. IF YOU DO YOU WILL LOSE"

DON’T SPECULATE. IF YOU DO YOU WILL LOSE. In all of the years that I have been a trader and associated with traders, I have never met a successful speculator. It is impossible to speculate and consistently print large winners. Don’t be a speculator. Be a trader.

"DON’T WORRY ABOUT NEWS. IT’S HISTORY"

DON’T WORRY ABOUT NEWS. IT’S HISTORY. I have never understood why so many electronic traders listen to or watch CNBC,MSNBC, Bloomberg News or FNN all day long. The “talking heads” on these programs know very little about market dynamics and market price action. Very few, if any, have ever even traded. Yet they claim to be experts on everything. Before becoming a “trading and markets expert”. the guy on CNBC reporting hourly from the Bond Pit, was a phone clerk on the trading floor. Obviously this qualifies him to be an expert! He, and others, can provide no utility to you. Treat it for what it really is… entertainment. The fact is: The reporting that you hear on the business programs is “old news”. The story has already been dissected and consumed by the professional market participants long before the “news” has been disseminated. Do not trade off of the reporting. It’s too late.