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TRADING WISDOM

 

"The elements of good trading are: 1) cutting losses, 2) cutting losses, and 3) cutting losses. If you can follow these three rules, you may have a chance."

 ~ Ed Seykota

 

"The market can remain irrational longer than you can remain solvent."

~ John M. Keynes

 

 "If you trade without a stop-loss, eventually the markets will stop you from trading by creating permanent losses that can never be recovered."

~ John DiCecco (TrendCharts)

 

"Economists have correctly predicted nine of the last five recessions."

~ Paul Sameulson

 

"Trend following is an exercise in observing and responding to the ever-present moment of now."

~ Ed Seykota

 

"Risk comes from not knowing what you're doing."

~ Warren Buffet

 

"When a position is moving in the direction of your trade, do the opposite of fear; but when a position is moving against the direction of your trade, do the opposite of hope."

 ~ John DiCecco (TrendCharts)

 

"As a general rule (when trading), avoid those things that give you comfort; it's usually a false comfort."

 ~ William Eckhardt

 

Trade to Win

 

Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.

Ed Seykota

Successful trading is as much about psychology as it is about skill and research. Unless you can overcome the psychological pitfalls of trading, you will find yourself inexplicably "winning by losing money."

To become a profitable trader you have to learn to stop making the same mistakes over and over again.  TrendCharts was born out of the experience of 15 years of trading the markets; it was designed to enable us to trade the markets objectively and independently; its purpose is to identify major market trends so that we can get on the right of the markets and avoid getting trapped on the wrong side of major market moves.

There is no such thing as a perfect trading system. Anyone who claims to have found such a system is either delusional or lying, or both. There is no way to avoid losing trades. They happen. But it's how you deal with losing trades that will determine your success or failure as a trader. Trendcharts was designed to quickly identify false trends in order to limit our losses on losing trades.

TrendCharts provides us with the confidence to trade the markets objectively and keep us from falling into the many psychological traps that lead to failure: we don't allow fear or greed or the financial media to influence our trading decisions. If Trendcharts says BUY, we buy; if TrendCharts says SELL, we sell. Nothing in between. As the Zen master Yun-Men said;

In walking, just walk. In sitting, just sit. Above all, don't wobble.

Zen Saying by Yunmen