Ed Seykota

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When traders want advice on their trading what better place to go than someone who had both big and consistent returns over a very long period of time?

“Mr. Seykota himself has put together a money management track record with returns of roughly +60% net of fees over the three-decade span of his trading career…” -Futures Magazine

You will have a difficult time finding anyone who beat Ed Seykota’s returns in the professional or amateur ranks over a short period of time much less a long period of time. 

Here are twelve quotes from Ed Seykota on how to trade the price action of the markets:

“If I am bullish, I neither buy on a reaction, nor wait for strength; I am already in. I turn bullish at the instant my buy stop is hit, and stay bullish until my sell stop is hit. Being bullish and not being long is illogical.”

“The trading rules I live by are: 1. Cut losses. 2. Ride winners. 3. Keep bets small. 4. Follow the rules without question. 5. Know when to break the rules.”

“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. Sometimes, I take profits when a market gets wild. This usually doesn’t get me out any better than waiting for my stops to close in, but it does cut down on the volatility of the portfolio, which helps calm my nerves. Losing a position is aggravating, whereas losing your nerve is devastating.”

“In order of importance to me are: 1) the long term trend, 2) the current chart pattern, and 3) picking a good spot to buy or sell.”

“Before I enter a trade, I set stops at a point at which the chart sours.”

“To avoid whipsaw losses, stop trading”

“Trading requires skill at reading the markets and at managing your own anxieties.”

“Markets are fundamentally volatile. No way around it. Your problem is not in the math. There is no math to get you out of having to experience uncertainty.”

“The trend is your friend except at the end when it bends.”

“I don’t predict a non-existing future.”

“Charting is a little like surfing. You don’t have to know a lot about the physics of tides, resonance, and fluid dynamics in order to catch a good wave. You just have to be able to sense when its happening and then have the drive to act at the right time.”

“If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it’s coming in, it’ll never happen. The market is always right”

These quotes are a great place to start on your path to price action trading, now the next step is understanding how to translate these quotes into your own strategy and system. I created my eCourse Price Action Trading to help give new traders a short cut to understanding these principles.