Ed Seykota is one of the greatest trend followers of all time. Today we will learn 5 principles to surf his big wave to make big winning trades that bring great profits for us without having too high a probability of winning.

1.The 5 great surfing principles of Ed Seykota:

  • Cut your losses quickly when you realize you're wrong - the most basic rule of capital protection.
  • Be profitable for a long time: at least until the market shows signs of no further increase or a trailing stop or a trend reversal.
  • Keep order volume small: the key to a long shelf life in the market, being able to trade without psychological influence, and still having a good night's sleep
  • Follow trading rules without thinking. The principle is set to follow without question
  • Always use a trailing stop to lock in profits on the upward path of the price.

2, You don't have to think about how much money you will make this week

Ask yourself instead: What is my plan to help me stay on the market for the next 10 years?

If you do, the money will take care of itself - Rayner Teo

3. One mistake I made in the past is to keep buying stock breakouts when the whole market is correcting. After a few days, the stock fell below its breakout level and I stopped losing. Never buy when the market is correcting - Julian Komar, professional stock trader

4. If you don't understand your system - its strengths, its weaknesses, and its purpose - you won't have enough confidence in it during periods of loss, and will quickly give up on it before the earning phase. be profitable to come. - Trading composure.

5. You only need to surf a few good trends to make enough profit for the year - Steve Burns, a professional trader.

6. Sometimes the deals that are most profitable for you are the ones you least care about - Steve Burns - Steve Burns.

7. There are never zero risks. The market doesn't work that way. Risk is there.

It is your job to determine when the risk is worth taking when the rewards from that risk are many times greater than the risk.