We can't control what the market does, but we can
Control reaction & emotion to the market:
reaction :
ride winners , cut losses
emotion :
fear <---> greed
" Don’t ever average losses. Decrease your trading volume when you are doing poorly; increase your volume when you are trading well. Never trade in situations where you don’t have control, e.g., in front of a major economic report.
If you have a losing position that is making you uncomfortable, get out, because you can always get back in. There is nothing better than a fresh start.
Don’t be too concerned about where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day . . . . Who cares where I was long from? That has no relevance to whether the market environtment is bullish or bearish right now, or to the risk/reward balance of a long position at the moment.
The most important rule of trading is to play great defense, not great offense. Every day I assume the position I have is wrong. [If my position] are going against me, then I have a game plan for getting out.
Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel you are very good. The second you do, you are dead."
-PAUL TUDOR JONES-
