Good traders liquidate when they are wrong, great traders reverse when they are wrong

You don't have to get in or out of a position all at once. Avoid the temptation of wanting to be completely right.

Being wrong is acceptable, but staying wrong is totally unacceptable.

Michael Jordan didn’t become a great basketball player because he wanted to do product endorsements. Van Gogh didn’t become a great painter because he dreamed that one day his paintings would sell for $50 million.

If you don’t stay with your winners, you are not going to be able to pay for the losers.

Traders focus almost entirely on where to enter a trade. In reality, the entry size is often more important than the entry price

One of my favorite patterns is the tendency for the markets to move from relative lows to relative highs and vice versa every two to four days. This pattern is a function of human behavior. It takes several days of a market rallying before it looks really good. That’s when everyone wants to buy it, and that’s the time when the professionals, like myself, are selling. Conversely, when the market has been down for a few days, and everyone is bearish, that’s the time I like to be buying.