You have to minimize your losses and try to preserve capital for those very few instances where you can make a lot in a very short period of time. What you can't afford to do is throw away your capital on suboptimal trades.

When you have a position, you put it on for a reason, and you've got to keep it until the reason no longer exists.

I always say you could publish rules in a newspaper and no one would follow them. The key is consistency and discipline.

When things aren't going right, don't push, don't press.

I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.

When you are getting beat to death, get your head out of the mixer.

There is another point that I think is as important: You should expect the unexpected in this business; expect the extreme. Don’t think in terms of boundaries that limit what the market might do. If there is any lesson I have learned in the nearly twenty years that I’ve been in this business, it is that the unexpected and the impossible happen every now and then