Perhaps my number one rule is: Don't try to make a profit on a bad trade, just try to find the best place to get out.

Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.

I believe that only short-term price swings can be predicted with any precision. The accuracy of a prediction drops off dramatically, the more distant the forecast time. I'm a strong believer in chaos theory.

The truth is that once you get down on the trading floor, you find that the traders come from all walks of life. You don't have to be a rocket scientist to be a trader. In fact, some of the best traders whom I knew down on the floor were surf bums. Formal education didn't really seem to have much to do with a person's skill as a trader.

Writing down your trades is the best exercise in the world.

Some of the best trades come when everyone gets very panicky. The crowd can often act very stupidly in the markets. You can picture price fluctuations around an equilibrium level as a rubber band being stretched -- if it gets pulled too far, eventually it will snap back. As a short-term trader, I try to wait until the rubber band is stretched to its extreme point.

Perhaps my number one rule is: Don't try to make a profit on a bad trade, just try to find the best place to get out.