Sunday, October 12, 2014

50 popular trading tweets

Below are a list of 50 tweets I have put up over the last few months. The majority of these have either been favourited or retweeted by other traders. They are purposefully in no particular order, but cover risk control, the trading mindset, expectancy and general trading/trend following principles.

  1. A magic formula for winning – positive expectancy multiplied by trading opportunity multiplied by trading efficiency.
  2. I’m wrong more often than I’m right, but when I’m right, I make more than I lose when I’m wrong.
  3. Trading a small position size & cutting losing trades quickly means you eliminate the possibility of one huge loss destroying your account.
  4. Knowing you lose more often than you win helps you risk a low percentage of equity per trade. Low risk & cutting losses quick = small losses.
  5. I lose on more than 60% of trades. Yet overall I win. That's what cutting losses, running profits & positive expectancy does.
  6. The biggest barrier to you achieving the results you desire? Go look in the mirror.
  7. It's better to be out of a trade wanting to get in, rather than being in a trade wishing you were out.
  8. Never think about how much you can win on a trade. You primary concern should how much you can lose.
  9. Know your timeframe. One man's pullback or retracement is another man's trend reversal.
  10. If the market shows you that your position is losing, cut the trade, preserve equity & move on. Don't let your emotions override your stops.
  11. You are the only person emotionally involved in your position. Other traders and the markets themselves couldn't care less.
  12. In trading, you are always a student of the markets. More importantly, you are always a student of yourself.
  13. Using a trading system is ultimately discretionary. You decide what markets to play, the parameters to buy or sell, how much to risk etc.
  14. I've yet to come across a method where an opinion or prediction can generate a profit - price has to move in your favour for that to happen.
  15. Which direction is the line of least resistance? That will depend on your timeframe, parameters etc. Whatever the answer is, follow it.
  16. Preserving your equity by not allowing small losses to develop into big losses will allow you to profit from future opportunities.
  17. One thing common to all traders, irrespective of how they determine their entries and exits, is good risk control.
  18. You can open a trade using a system with positive expectancy and good risk control yet still lose. Over the long term though, you will win.
  19. Successful traders have their beliefs about the markets, & have the conviction to trade those beliefs with discipline and good risk control.
  20. Don't hope the trade will turn back in your favour. If it's not acting right, get out, treat the loss as a cost of doing business, & move on.
  21. Most unsuccessful traders focus on how much they will make on a trade. Most successful traders focus on how much they can lose. Coincidence?
  22. Successful traders always identify an exit level before entering a new trade. This helps determine their risk per trade.
  23. Your processes should ensure that your emotions do not override your system logic.
  24. Trading small position sizes allows you to have an emotional indifference towards each trade. This makes it easier to follow your rules.
  25. Using trailing stops (and honouring them) is a great way to exit trades using a systematic approach without your emotions getting involved.
  26. Knowing when to exit a winning trade, as well as knowing when to exit a losing trade, should be an important part of your overall strategy.
  27. If an old price trend finishes and a new one starts, embrace it. Don't fight it - welcome it. New trends bring newopportunities.
  28. Your system parameters and timeframe will determine when a pullback or retracement becomes a reversal of trend.
  29. If you allow price to show you the way, and you jump aboard for the ride, you will always be on the right side of a major market move.
  30. I have no idea where price is heading, so I don't predict. I let price show me the way, and I follow.
  31. Too many traders let hope, greed, fear or ignorance lead them to regret. Don't let your emotions determine your trading actions and results.
  32. Having an opinion or making a prediction won't make you money. However, price moving in your favour after entry will.
  33. If price starts going up, at some point they will look to go long. If price keeps going up, they will stay long.
  34. Trend followers avoid trading opinions or predictions. They focus on what price is doing. It is a reactionary process.
  35. Using a proven, robust method, you can accept taking small losses, as you know it brings you closer to a winning trade - maybe a big one.
  36. Trend following is a very simple concept, and all revolves around focusing on one metric - price.
  37. Most traders would be better off having simple entry and exit rules, and giving a lot more attention to their risk control and mindset.
  38. While lots of traders want to develop more & more complex systems, as far as I'm aware price can still only go up, go down, or go sideways.
  39. A trend follower's aim is to restrict losses and avoid restricting profits.
  40. Losses are controlled by proper position sizing and use of stops. Your approach to risk control should also factor in the unexpected.
  41. Once you have placed a trade, everything is out of your control. All you can do is watch and see if the position goes in your favour or not.
  42. If markets are not favourable towards your method, moving to the sidelines can be an important positional advantage to an individual trader.
  43. If a market isn't trending, then there's no current opportunity for a trend follower. This is when patience and discipline come to the fore.
  44. Once you accept that you cannot control the market (which doesn’t care about your entry price or opinion) u can focus on things you CAN control.
  45. So, what can you control? Your risk per trade, your entry/exit criteria, your patience, discipline & commitment to stick to your rules.
  46. Taking full responsibility for your actions is a major shift for most, yet is probably the biggest positive change a trader can make.
  47. Good traders take 100% responsibility for their actions and results. Poor traders take 0% responsibility for their actions and results.
  48. Trading too aggressively (e.g. overtrading in poor market conditions, risking too much per trade) can turn a winning system into a losing one.
  49. Successful traders focus on what they can control (i.e. risk, mindset, following their rules) and let the markets do what they want to do.
  50. When price moves against you and you ignore what it is telling you, that’s how big losses occur. Keep losses as small as possible.


  1. This is my favourite post by far! :-) 50 nuggets of bite-sized advice that yield outsized returns (sometime literally). Are they roughly ordered by importance? I'm thinking that the top 10 (or a new condensed set) would make a great "checklist" to be stuck by the side of one's trading screens.

    1. No, they are simply some of the tweets I have put up over the last few months. These generally have arisen out of topics discussed with other traders or as part of my mentoring.

      You can easily make your own 'Top 10' out of the list (indeed if you do so I would be delighted!) which would be unique to you, but what would be the top 10 for one person wouldn't necessarily be the same as someone else's top 10. Every trader is unique, and has their own issues, or aspects they may need to concentrate more on. As a result what they will need to focus be different to anyone else.