6 Trading Insights From Some Of The Best In The Game

To have the opportunity to sit and talk with some of the best in the game for their trading insights would be an incredible opportunity.

For the majority of us, that will never happen.

We are fortunate that these people, who can impart trading wisdom from their own experience on the road to success, are often happy to be interviewed.

It’s in these interviews that they share their rocky road stories to trading success, the lessons it taught them, and how they eventually dealt with them.


6 Trading Insights To Commit To Memory

You could fill a blog full of quotes about trading risks, methods, and psychology but I wanted to start with six that you could hit the ground running with by making them a part of your own thinking.

trading quote Van Tharp
“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business” – Van K Tharp

This really highlights taking full responsibility for your trading and not pointing blame when it goes off the tracks.  If you choose to commit to being a trader, it makes sense to use that time productively and work towards being the absolute best at what you do.

If being just an “o.k.” trader is good enough, you may be leaving a lot of potential left unearthed.


persist in trading
“Persist – don’t take no for an answer. If you’re happy to sit at your desk and not take any risk, you’ll be sitting at your desk for the next 20 years.” David Rubenstein

At the first sign of struggle, most people give up and take the path of least resistance.  You must accept that there will be frustrations in trading just like in any other career.

It’s those that pick themselves up,  learn to accept the challenges, and find ways to minimize their impact, those are the ones who have a great chance of reaching their goal.


paul tudor jones wisdoms
“If I have positions going against me, I get right out; if they are going for me, I keep them… Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.” – Paul Tudor Jones

Many people think the trade entry is the most important thing in trading but Paul Tudor Jones puts what’s important in perspective with this trading insight.  One trade will not define your success so if it’s not going well, simply exit and regroup.  Being stubborn and holding on because the trade “will come back” will cost you.

Take too many losing trades where you didn’t properly define your risk and eventually you will lose your account.  It’s that simple.


objectivity in trading ray dalio
“More than anything else, what differentiates people who live up to their potential from those who don’t is a willingness to look at themselves and others objectively.” Ray Dalio

We have a tendency to have a high opinion of ourselves in various circumstances even when faced with information to the contrary.  In trading, you have to know what you don’t know and be free enough to admit that.

Since psychology is vital in terms of trading, you also have to be able to point out flaws in your personality that can affect your decision making process and find ways to lessen their impact.  You will learn a lot about yourself as you venture forward in trading and some of the truths you find, may be hard to accept.


alexander elder
“The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder

Assuming you do have a statistical edge in the market, the best thing to do is to simply focus on the process.  One stumbling block that a lot of traders face is trading outside of their trading plan leading to taking low probability trades for various reasons.

One common issue is they take that trade to make up for the losses that came just before it because they “know” that the market will deliver.  In the end, this type of trading never leads to consistent success.

If you are trading an edge, focus on doing everything right (the process) and the money will come.


why do you trade
“My experience indicates that most people who’ve accumulated a great deal of wealth haven’t had that as their goal at all. Wealth is only a by-product, not the original motivation.” Michael Milken

This is one of my top picks in terms of trading insights.  I call it the “why behind your trading” and it can lead to some serious soul searching.  If there is a big enough “why” behind what you do, your chance increase that you will reach your goal.

Why do you trade?  Yes, it can bring you money but what does that mean to you?  What can it provide in terms of enjoyment, family, experiences….anything that you cherish?  It can be anything from being able to be a stay at home parent all the way to doing good for your community, your city, the world.  Dare to dream.

Knowing “why” you trade will help you stay close to your trading plan, motivate you to deal with frustrations, and above all, keep you from doing something that is the polar opposite of a professional approach to your trading career.

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Author: CoachShane
Shane his trading journey in 2005, became a Netpicks customer in 2008 needing structure in his trading approach. His focus is on the technical side of trading filtering in a macro overview and credits a handful of traders that have heavily influenced his relaxed approach to trading. Shane started day trading Forex but has since transitioned to a swing/position focus in most markets including commodities and futures. This has allowed less time in front of the computer without an adverse affect on returns.