Don't Be Average. Average Traders Lose

“It isn’t strategy that will set them apart from other traders. It is how traders think about their strategy–and their ability to follow the strategy–that will set them apart.”

“Our trades from yesterday have no bearing on the markets today.”

“Everything you ever wanted lives on the other side of fear.”

“For me, the side benefit of earning a living from trading the financial markets is the character traits it instills in me. I am more patient than ever. I am much more focused and disciplined than I was before. Failure is one of our greatest learning tools."

“There is nothing wrong with trend lines, but they will not make you rich. What will make you rich is how you think when you trade. If you think like everyone else, then your results will be like everyone else’s.”

“You must be patient with yourself. You must be able to let your knowledge settle and mature within you. If you trade small size now, but you want to trade bigger size in the future, then that journey will most likely be anything but linear.”

“You have to grow into the trader you dream of becoming.”

“When you are in a winning position, instead of thinking where to get out, why don’t you think about where to get in more?”

“I have a philosophy to trading that means I am prepared to sacrifice profits in order to discover how big the profit can get. If you don’t have that philosophy, you will never discover how big the profit can get.”

“I am simply following the process I always follow. I am a process-oriented trader. The markets determine the outcome. I have little control over that. I have faith. I believe that my process will carry me through the highs and the lows of trading.”

“The paradox of trading is this: by doing what the 90% cannot do, you will become successful.”

“1. I assume I am wrong–until proven otherwise. 2. I expect to be uncomfortable. 3. I add when I am right. 4. I never add when I am wrong.”

“The 90% will focus on what they want to avoid. I focus on what I want to achieve. The 90% give in to their fears. I expect my fears to come in abundance, and I have a plan for counteracting them. I see a different image.”

“Emotions kill trading accounts. It isn’t the lack of knowledge that’s stopping you from winning big. It’s the way you handle yourself when you are in a trade.”

“There is an ideal way to think as a trader. There is an ideal mindset–one that is flexible to the extreme. It does not care about winning. It does not care about losing. It is a carefree state of mind, but it still acts in your best interest. The ideal trading mindset has no fear.”

“Your prime objective is not to make money. Your prime objective is to follow the strategy you have developed. More importantly, your prime objective is to follow the process you have designed for yourself. If you follow the process, the outcome will take care of itself.”

“Do you know why I let it ride? Because I know myself well enough to accept that if I took profit, and the market then continued lower, I would feel awful. The pain of seeing a market giving you even more profit when you are not on board is much greater than the pain of seeing some of your paper profit disappear–to me at least!"

There is so, so, so much more wisdom in this book. I can’t recommend it enough:

Best Loser Wins, by Thomas Hougaard

Trade 'em Well,

Sean McLaughlin
Chief Options Strategist
All Star Charts, Technical Analysis Research