Ten Trading Paradoxes

In over a dozen years of learning what works and what doesn’t in profitable trading I believe there are many paradoxes. Most of trading is counter intuitive and new traders usually enter the market looking for predictions, sure things, hot tips, and to know what to buy. In reality it is following price action as it unfolds, managing risk, trading a plan, and knowing when to sell a wining trade is what really makes the money. Most new traders never become profitable traders because they can never make that leap. Trading is a business and when the new trader becomes a business person and quits wanting to win the trading lottery, that is when the real progress begins.

Here are ten paradoxes that I have learned on my own path to consistent profitable trading.


  • A seemingly contradictory statement that may nonetheless be true.

  • One exhibiting inexplicable or contradictory aspects.

  • A statement contrary to received opinion.

  1. The less I trade the more money I make.

  2. All my biggest profits were made on option contracts I bought not ones I sold.

  3. My number one job as a trader is to manage risks not make money.

  4. The best traders in history were the best risk managers not the best at entries and exits.

  5. The ability to admit you are wrong about a trade and get out is more important than being confident in a wining trade and staying in no matter what.

  6. Winning traders think like a casino losing traders think like gamblers.

  7. Opinions, projections, and predictions are worthless, trade the price action.

  8. At times fundamentals are good helpers to a trader but they are always terrible masters.

  9. Only date trading vehicles but marry your risk management and positive mind set.

  10. The smaller and more focused my watch list the better I trade what is on my watch list.