Never risk more than 1% of total account equity on any one trade. By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical.
I have two basic rules about winning in trading as well as in life: 1. If you don’t bet, you can’t win. 2. If you lose all your chips, you can’t bet.
Throughout my trading career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.
I have noticed that everyone who has ever tried to tell me that markets are efficient is poor.
If you diversify, control your risk, and go with the trend, it just has to work.
When a market makes a historic high, it is telling you something. No matter how many people tell you why the market shouldn’t be that high, or why nothing has changed, the mere fact that the price is at a new high tells you something has changed.
Frankly, I don’t see markets; I see risks, rewards, and money.
No matter what information you have, no matter what you are doing, you can be wrong.
I don’t trade for excitement; I trade to win.
It is incredible how rich you can get by not being perfect.
We approach markets backwards. The first thing we ask is not what can we make, but how much can we lose. We play a defensive game.