HOPE is Not a Trading Strategy
He’s no Market Wizard, but he is The Wiz, and nobody beats him.It’s true - I’m a huge Market Wizards fan. All 3 of these interview-style trading books by Jack Schwager are excellent, and they continue to teach and remind me of highly important lessons about trading. My copies are all marked up with underlines, highlights, and margin notes, and I seem to add more every time I open them up.
Recently, I ran across a great quote by Larry Hite in Market Wizards:
“First, if you never bet your lifestyle, from a trading standpoint, nothing bad will ever happen to you. Second, if you know what the worst possible outcome is, it gives you tremendous freedom. The truth is that, while you can’t quantify reward, you can quantify risk.”
What a nice, basic concept. Know your risk…..on every trade, at any given time.
I know a trader who’s struggling to follow this advice right now. After getting caught on the wrong side of the market a few times in recent weeks, Read more »





