Speaking of Ed Seykota, perhaps no one does not know him. He is famous for many things, one of which is his enviable returns on the stock market. Besides, he is also one of the pioneering traders in high-frequency trading (also known as high-frequency trading).

Besides his talent in trading, he is also a music lover. He often communicates his trading philosophies while playing the banjo and lets everyone understand it and feel his experience.


In a speech at the International Federation of Technical Analysts in San Francisco, Ed Seykota talked about 15 things traders need to adhere to in order to achieve trading success like he did. :

1. A good trend will tell us all.

2. Take the risk just enough for you to get a good night's sleep.

3. When the price gets past your stop loss, pull the trigger and sell straight.

4. As for news: we should throw these nonsense things in the trash. Ignore what is known as "news".

5. Trading size matters. Please trade with the right size.

6. When under stress, investors often resort to therapy. But in my opinion, they should do the right things like cut losses.

7. You must recognize the trend as soon as possible. If you wait and only join when they have multiplied, it's too late. Try to find a new trend.


8. Know re-investment and capital turnaround. Don't take the profits to run out to buy a new Porsche.

9. When trend traders start to lose interest, the momentum starts to turn negative. It's time to exit the market!

10. There is no Holy Grail. You just need to do exactly what you need to do, follow the discipline, and trade with the main trend, if wrong, cut your loss. Those are the basics.

11. Determine where you will exit the order before you enter the order.

12. Don't let the demons of greed invade you. Water your mind of blessings.

13. Luck is just a form of "Fat tail" (a phenomenon with a small probability of happening but has a great impact on profits). Luck always comes and if it comes to you, manage it with humility and stop loss.


14. "Adrenaline trading" diminishes over time and your experience in the market. Your goal is to get rid of it - completely (Adrenalin is a hormone that acts on the sympathetic nerves, produced by the body when you are scared, angry, or excited, making your heartbeat. Your body beats faster and is your body's response to danger).