Top 26 Quotes From Ed Seykota On Trend Following, Trading And Life

 Quote 1:

“Win or lose, everybody gets what they want out of the market.  Some people seem to like to lose, so they win by losing money.”

 Quote 2:

“Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals”.  However, if you catch on early, before others believe, you might have valuable “surprise-a-mentals”.”

 Quote 3:

“If you can’t measure it, you probably can’t manage it… Things you measure tend to improve.”

Quote 4:

“The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.”

 Quote 5:

“There are old traders and there are bold traders, but there are very few old, bold traders.”

 Quote 6:

“”I would add that I consider myself and how I do things as a kind of system which, by definition, I always follow.”

 Quote 7:

“Systems trading is ultimately discretionary.  The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading base as a function of equity change.”

 Quote 8:

“Trying to trade during a losing streak is emotionally devastating. Trying to play “catch up” is lethal.”

 Quote 9:

“The elements of good trading are: 1, cutting losses. 2, cutting losses.  And 3, cutting losses.  If you can follow these three rules, you may have a chance.” (more…)

The essence of chutzpah

Chutzpah is a Yiddish word meaning gall, brazen nerve, effrontery, sheer guts plus arrogance.  It’s Yiddish and, as Leo Rosten writes, “No other word and no other language, can do it justice.”  This example is better than 1,000 words. Read the story below the picture and then you will understand.

 

A little old lady sold pretzels on a street corner for 25 cents each. Every day a young man would leave his office building at lunch time, and as he passed the pretzel stand, he would leave her a quarter, but never take a pretzel. This went on for more than 3 years. The two of them never spoke. One day, as the young man passed the old lady’s stand and left his quarter as usual, the pretzel lady spoke to him.  Without blinking an eye she said:   “They’re thirty five cents now.”

Ed Seykota-Quotes

(So you didn’t have a clear exit point) In other words, the only way you could stop trading was by losing.

If you can’t take a small loss, sooner or later you will take the mother of all losses.

There are old traders and there are bold traders, but there are very few old, bold traders.

Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.

I prefer not to dwell on past situations. I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities.

The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. Cutting losses. If you can follow these three rules, you may have a chance.

Trying to trade during a losing streak is emotionally devastating. Trying to play “catch up” is lethal. (more…)

Keep perspective

perspective

IF you can keep your head when all about you
Are losing theirs and blaming it on you
If you can trust yourself when all men doubt you
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,
And yet don’t look too good, nor talk too wise:
If you can dream – and not make dreams your master;
If you can think – and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;

If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools: (more…)

Seven Habits of Ineffective Traders

  1. When people won’t do their own homework.
  2. When people can’t explain their reasoning for a trade.
  3. When people make things more complicated than they need to be.
  4. When people enter a trade for a good reason, then lose their nerve and exit too soon.
  5. When people hesitate, or follow others, and enter a trade too late.
  6. When people will not contemplate the real reasons for their failures.
  7. A defeatist attitude, especially in me.

Erin Burnett yells at guy, saying he is 'so rude!'

To be honest, we’re not sure what EuroPacific’s Michael Pento did during this debate that was so out of the norm for CNBC, where yelling and talking over each other is common… but obviously he touched a nerve with Erin Burnett who yelled at him YOU ARE SO RUDE right at the :37 mark.
Then after he finishes he point, she lectures him some more, prompting the eye-roll seen here.
As for the debate? It was about the US bond market and whether the massive US debt load will turn bonds into toilet paper. We guarantee nobody makes a point you haven’t already heard several times.



 

Ed Seykota-Quotes

If you can’t take a small loss, sooner or later you will take the mother of all losses.

There are old traders and there are bold traders, but there are very few old, bold traders.

Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.

I prefer not to dwell on past situations. I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities.

The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. Cutting losses. If you can follow these three rules, you may have a chance.

Trying to trade during a losing streak is emotionally devastating. Trying to play “catch up” is lethal.

I set protective stops at the same time I enter a trade. I normally move these stops in to lock in a profit as the trend continues. (more…)

In Search Of Emotional Discipline

 emotional-discipline
 
 
 
 
 

  • An intra-day watch list keep you organized, focused, and ready to ACT
  • Trading specific candlestick patterns forces you to be consistent in your observations
  • Trading 15 min bars allow the market enough time to marinate and develop patterns
  • 15 min timeframe give you the opportunity to calmly stalk your prey and not rush to judgement (more…)
  • Democracy Failure Follows Market Failure

    Some very spicy comments from the Hungarian prime minister who basically tells the world to get lost (please admire effort to remain polite on his part). In so many words it’s not his fault, it’s the previous administration’s fault. Sounds familiar? Obama has used it at will, Greece has used it, I heard Sarkozy use it, and just about everybody else! Even Republicans who campaigned to “Drill baby drill!” now blame the BP fiasco on Obama. Needless to say political courage is something that no longer exists, and populism has been the only political program offered to us for now a solid 40 years. The natural extension is for a Prime Minister to just walk in and say: “You know what screw you guys, we will default, I am not taking back tax cuts that got me elected, I am not telling people who were promised early retirement that really it’s not feasible, I’m just not going to deal with any of this. Let’s just default and keep doing what we were doing”. In the same line of thought the French PM declared this morning that there is nothing bad about EURUSD at parity.

    If you think it’s bad to sell someone a mortgage they can’t pay, how about promising them a lifestyle they can’t afford! Washington has some nerve to blame the financial industry: “a house for every American” was their idea. Granted there is plenty of blame and jail time deserved at many financial institutions but it is true also for Congress. I used to think that over the past 40 years the commodity that was most devalued was human labor but I have changed my mind. A man’s word no longer has any value in most cases. Should the law be changed so that it holds our leaders accountable for their words? Why not, we would get a hell of a clean slate and something to be finally hopeful about. That is change I would believe in for sure. (more…)

    Go to top