Best advice for Traders

What is the best piece of advice you’ve ever received?

I think understanding why your strategy makes money. That’s key. If you don’t know why your strategy makes money you’re never going to make it work if things get a little bit difficult. So the more you can understand why your strategy makes money, the better you’ll understand the market, and why a strategy’s not working well during that period of time. And that really helps the bottom line success.

I think a lot of people just throw good money after bad, just punting. They don’t really have any strategy or if they do have a strategy they don’t understand why it’s making money.

So I think that’s the best piece of advice that I’ve ever been given: Understand why your strategy makes money!

I know why our strategies work: we make more money when we win, than when we lose. The only thing we can truly manage are our losses so we make sure the losses are small but we let the profits run.