Ed Seykota Quotes
Ed Seykota Background and Quotes For Traders
Ed Seykota was born in 1946 and graduated from the Massachusetts Institute of Technology with a degree in Electrical Engineering.
His name became more popular after Jack Schwager wrote about Ed in his book Market Wizards. In this book, Jack mentions how Ed Seykota turned a client’s account from $5,000 to $15,000,000 in just 12 years.
Despite the popularity of Market Wizards, it was not written by Ed Seykota himself. Seykota’s first book, The Trading Tribe, focuses on just that, how he manages his “Trading Tribe”. It was published in 2005 and dives into trader psychology as well.
His inspiration for the book came from his interactions with other traders and investors where he discovered emotions and psychology have much more of an effect on performance than most traders believe.
Below we share 20 powerful trading lessons and quotes from Ed Seykota and we hope that they leave an impression on you.
1. “If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota
2. “Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible” – Ed Seykota
3. “Having a quote machine is like having a slot machine at your desk – you end up feeding it all day long. I get my price data after the close each day.” – Ed Seykota
4. “In order of importance to me are: 1) the long term trend, 2) the current chart pattern, and 3) picking a good spot to buy or sell.” – Ed Seykota
5. “Markets are fundamentally volatile. No way around it. Your problem is not in the math. There is no math to get you out of having to experience uncertainty.” – Ed Seykota
6. “Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.” – Ed Seykota
7. “If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it’s coming in, it’ll never happen. The market is always right” – Ed Seykota
8. “Trading requires skill at reading the markets and at managing your own anxieties.” – Ed Seykota
9. “To avoid whipsaw losses, stop trading” – Ed Seykota
10. “The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.” – Ed Seykota
11. “Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.” – Ed Seykota
12. “I usually ignore advice from other traders, especially the ones who believe they are on to a “sure thing”. The old timers, who talk about “maybe there is a chance of so and so,” are often right and early.” – Ed Seykota
13. “A lot of people would rather understand the market than make money.” – Ed Seykota
14. “It can be very expensive to try to convince the markets you are right.” – Ed Seykota
15. “Trying to trade during a losing streak is emotionally devastating. Trying to play “catch up” is lethal.” – Ed Seykota
16. “Before I enter a trade, I set stops at a point at which the chart sours.” – Ed Seykota
17. “Risk control has to do with your willingness to allow your stop to do its job.” – Ed Seykota
18. “A trading system is an agreement you make between yourself and the markets.” – Ed Seykota
19. “The elements of good trading are (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.” – Ed Seykota
20. “In your recipe for success, don’t forget commitment – and a deep belief in the inevitability of your success.” – Ed Seykota