Top Five Quotes from Market Wizard Scott Ramsey
Hedge Fund Market Wizards by Jack Schwager

Jack Schwager’s interview with Scott Ramsey from Hedge Fund Market Wizards was very clear and to the point. Mr. Ramsey trades futures in an approach that reminded me of the Darvas techno-fundamentalist method. He looks for fundamental reasons for a trade, and then makes his entries and exits based 0n confirmation in the technical price action.

“I made every rookie mistake in the books. Rather than taking the easy route and trading with the trend, I was trying to pick tops and bottoms, and I sat with losers and took small profits.” – Scott Ramsey

“The other thing I did wrong was that every time I made money, I would pull it out. So instead of increasing my size over time, I stayed a one- and two- lot trader. I never really tried pushing myself. The evolution of a trader is when you start letting your money work for you and increasing your size.” – Scott Ramsey

“The reality is that I’m not being paid to be right; I am being paid to make money. You have to have a degree of flexibility. Whenever I talk to investors, I make it clear to them that whatever I say today about the market may or may not reflect the positions I have tomorrow or the next day.” – Scott Ramsey

“To me, the most important thing is to control the downside. Rigorous risk control is not only important in keeping losses small, but it also impacts profit potential. You have to put yourself in the position to be able to take advantage of opportunities. The only way you can do that is to have a clear mind. If you have trades that are not working, and your mental energy is going toward damage control, you can’t think clearly about opportunities in the market.” – Scott Ramsey

“The market doesn’t care if you lost money on a trade. It doesn’t matter. Think about your next trade. You have to get past the idea that just because you lost money on a trade, it means you failed. Every trading decision you make is subject to some randomness. It doesn’t matter whether you win or lose on any individual trade, as long as you get the process correct.” – Scott Ramsey

This is all great timeless principles for long term trading success.