Wall Street works hard to make what they do,
which is nothing more than buying and holding,
appear complex and sophisticated.
No one knows how high or how low a market will go.
No one knows when a market will move.
You can't undo the past and you can't predict the future.
Prices predict the future, not traders.
Losses are a cost of doing business.
If you don't have losses, your not taking risks.
If you don't risk, you won't win.
PRICE must go either up, down or sideways.
No advances in science or technology
or radical shifts in perception will alter this fact.
PRICE tells all.
To make money you must live with and accept volatility.
The fact that markets are volatile is not a problem.
The problem is you if volatility scares you.
If you can't stand the damn heat, then get the hell out of the kitchen.
The more volatile the market the less you risk,
the less volatile the market, the more you want to risk.
A trend is like a wave and you are the surfer, ride the wave.
Big waves or "trends" make big profits.
Always prepare for drawdowns after strong periods of performance.
Trends become more apparent as you step further away from the chart.
Trendfollowing is simple being on the right side of a move.
No one can predict the bottom or the top of a price run,
its being on the right side when the move is on.
TRADE WITH THE TREND.
Trendfollowers are right for the trend and wrong at each end.
The exact turning point,
the top or bottom can never be known
until its over and a matter of record.
If you want to be successful in the market
you have to be passionate about your trades.
Winners take responsibility, losers take blame.
If you can't afford to lose, you can't afford to trade.
Your loses should be quantified before ever entering the trade.
Money is only a means of keeping score.
Trust your trade, if you cant trust it, don't trade.
If you have realistic confidence in trend following and yourself,
then temporary setbacks don't matter.
Fearless decision makers have a plan and execute it.
They don't look back.
Along the way if something changes,
their plan has flexibility built into it so they can adjust.
M. Covel
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