"Most successfulspeculators have success rates of 35-50%. They are not successful because they predict well prices, but because the size of their profitable trades far exceeds the size of their losses. This requiresinternal control"... Van Tharp
"3 consecutive losses or even a dozen consecutive losses does not mean your next trade will be a loss. Yet, you strengthen the chance of it greatly when you believeyou are in a slump. Why ? Because you believe that past poor performance is going to continue. When you project your uncertainty, doubt, and fear about your own performance into the future with yourbelief, you literally change the way you approach the markets and that change will produce losses. Such is the power of beliefs…"
"The psychological effects of losing can hurt your motivation towin. Losses can prompt gambling behavior or self-destructive trading, where the trader throws caution to the winds and keeps looking to recover all the losses in a few high-risk bets."
"Losses staylonger in memory than do the satisfactory feelings associated with winning, and play a bigger part in influencing traders to act defensively, to cover up, to compensate..."
"The master trader managesentry points and downside first before trying to shoot for the maximum results.You take action without certainty but with certain risk parameters.You enter the market without expectations,surrendering to it…"
"The best traders have certain characteristic, measurable trading patterns. The largest percentage of their profitability comes from a small percentage of their trades. This meanssuccess comes from a small number of very large trades, where they have developed an edge."
"If you accept the notion right now that you cannot control the market, that all you can control is your...