In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.
It is essential to wait for trades with a good risk / reward ratio. Patience is a virtue for a trader.
It took me five years to learn to play the game intelligently enough to make big money when I was right.
It pays to write down your plan. You need to know exactly under what conditions you will enter and exit a trade. Do not make decisions on the spur of the moment, when you are vulnerable to being sucked into the crowd. Plans are created by reasoning individuals. Impulsive trades are made by sweaty group members.
There is only one side of the market and it is not the bull side or the bear side, but the right side.
I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.
Succesful institutional traders often talk of quitting and going to trade for themselves. Only a handful of them manage to make the transition. Most traders who leave institutions get caught up in the emotions of fear, greed, elation, and panic when they start risking their own money.
I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street. As long as they realize the market is a business like any other business, they have a good chance to prosper.
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.
Many traders ride an emotional roller coaster and miss the essential element of winning: the management of their emotions.