You Can Achieve Great Economic Gains By

My Off-the-cuff Remarks At The University Of Virginia Were With Regard To Global Macro Traders, Who Are On-call 24/7 And Of Whom There Are Likely Only A Few Thousand Successful Practitioners In The World Today. Macro Trading Requires A High Degree Of Skill, Focus And Repetition. Life Events, Such As Birth, Divorce, Death Of A Loved One And Other Emotional Highs And Lows Are Obstacles To Success In This Specific Field Of Finance.

First Of All, Never Play Macho Man With The Market. Second, Never Overtrade.

Don't Be A Hero. Don't Have An Ego. Always Question Yourself And Your Ability. Don't Ever Feel That You Are Very Good. The Second You Do, You Are Dead.

Don’t Ever Average Losers. Decrease Your Trading Volume When You Are Trading Poorly; Increase Your Volume When You Are Trading Well. Never Trade In Situations Where You Don’t Have Control. For Example, I Don’t Risk Significant Amounts Of Money In Front Of Key Reports, Since That Is Gambling, Not Trading.

The Most Important Rule Is To Play Great Defense, Not Great Offense. Everyday I Assume Every Position I Have Is Wrong. I Know Where My Stop Risk Points Are Going To Be. I Do That So I Can Define My Maximum Drawdown. Hopefully, I Spend The Rest Of The Day Enjoying Positions That Are Going In My Direction. If They Are Going Against Me, Then I Have A Game Plan For Getting Out.