The marketplace is an arena and other traders are the adversaries.

I turned from a loser to a winner when I was able to separate my ego needs from making money. When I was able to accept being wrong. Before that, admitting I was wrong was more upsetting than losing the money.

When I became a winner I went from ‘I figured it out, therefore it can’t be wrong’ to ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.’

By living the philosophy that my winners are always in front of me, it is not so painful to take a loss. If I make a mistake, so what!

My attitude is: Never risk your family’s security.

Whenever you get hit, you are very upset emotionally. Most traders try to make it back immediately; they try to play bigger. Whenever you try to get all your losses back at once, you are most often doomed to fail.

After a devastating loss, I always play very small and try to get black ink, black ink. It’s not how much money I make, but just getting my rhythm and confidence back.

Before taking a position always know the amount you are willing to lose.

The most important thing is money management, money management, money management. Anybody who is successful will tell you the same thing.

I always take my losses quickly. That is probably the key to my success.

The best advice I can give to the ordinary guy trying to become a better trader is Learn to take losses. The most important thing in making money is not letting your losses get out of hand.