My message for 2016 is simple: Predictions are useless. Keep an open mind and let the market tell you what it is doing in real-time, and be prepared and ready to put yourself in the position of being able to "get lucky."

"BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE."

BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE.

"In all of my years as a trader I never traded more than a 50 lot on any individual trade. Sure, I would have liked to be able to trade like colleagues in the pit who were regularly trading 100 or 200 lots per trade. However, I didn’t possess the emotional or psychological skill set necessary to trade such big size. That’s OK. I knew that my comfort zone was somewhere between 10 and 20 lots per trade. Typically, if I traded more than 20 lots, I would “butcher” the trade. Emotionally I could not handle that size. The trade would inevitably turn into a loser because I could not trade with the same talent level that I possessed with a 10 lot."
Learn to accept your comfort zone as it relates to trade size. You are who you are. 

"THE FIRST LOSS IS THE BEST LOSS"

THE FIRST LOSS IS THE BEST LOSS Once you come to the realization that your trade is no good it’s best to exit immediately. “It’s never a loser until you get out” and “Not to worry, it’ll come back” are often said tongue in cheek, by traders in the pit. Once the phrase is stated, it is an affirmation that the trader realizes that the trade is no good, it is not coming back and it is time to exit

"YOUR BIGGEST LOSER CAN’T EXCEED YOUR BIGGEST WINNER."

YOUR BIGGEST LOSER CAN’T EXCEED YOUR BIGGEST WINNER.

Keep a trade log of all your trades throughout the session. If, for example, you know that, so far, your biggest winner on the day is five e‐Mini S&P points, then do not allow a losing trade to exceed those five points. If you do allow a loss to exceed your biggest gain then, effectively, what you have when you net out the biggest winner and biggest loss is a net loss on the two trades. Not good.

"NEVER TURN A WINNER INTO A LOSER."

NEVER TURN A WINNER INTO A LOSER.

We have all violated this rule. However, it should be our goal to try harder not to violate it in the future. What we are really talking about here is the greed factor. The market has rewarded you by moving in the direction of your position, however, you are not satisfied with a small winner. Thus you hold onto the trade in the hopes of a larger gain, only to watch the market turn and move against you. Of course, inevitably you now hesitate and the trade further deteriorates into a substantial loss.
There’s no need to be greedy. It’s only one trade. You’ll make many more trades throughout the session and many more throughout the next trading sessions. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance or the day. Don’t be greedy.