Notes
The inner game: the emotions, beliefs and habits that decide whether a trader follows a plan.
Showing 221–235 of 235 notes
Watch Your Ego
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.” — Paul Tudor Jones
Confidence builds great traders. Ego destroys them. Know the difference.
The Cheetah Principle
“Although the cheetah is the fastest animal in the world and can catch any animal on the plains, it will wait until it is absolutely sure it can catch its prey. It may hide in the bush for a week, waiting for just the right moment. It will wait for a baby antelope, and not just any baby antelope, but preferably one that is also sick or lame. Only then, when there is no chance it can lose its prey, does it attack. That, to me, is the epitome of professional trading.” — Mark Weinstein, Market Wizards
Two traders can look at the same chart, trade the same setup, and still walk away with completely different results.
The difference usually isn’t the strategy; it’s how each trader executes it. Entry timing, position size, stop placement, and profit-taking all affect the outcome.
Even when two people aim for the same stop and target, small differences in how they enter and manage the trade can make one lose while the other wins.
As Ed Seykota said, “I can give everyone the same trading system and we’d all still make different amounts of money, because everyone would manage it differently.”
Edge matters, but execution and mindset matter just as much. How you handle losses, re-enter after getting stopped out, and stay objective under pressure is what separates consistent traders from the rest.
Systems create opportunities. Execution decides outcomes.
Ed Seykota — The Genius of Trend Following and the Psychology of Winning Traders
From a $5,000 account to $15 million — the timeless lessons of Ed Seykota’s systems, discipline, and self-mastery that still work today.
Full article: https://tradingmomentum.substack.com/p/ed-seykota-the-genius-of-trend-following
Reminder after yesterday’s sell-off:
I’m not a value investor like Warren Buffett, but I love when the market goes down just like he does.
If big drops or bear markets make you panic, it’s time to reassess your mindset.
Corrections and deep sell-offs create the next great opportunities — that’s when risk/reward becomes truly asymmetric.
Sometimes the hardest move — buying more or stepping back in when fear is highest — ends up being the most profitable.
The biggest gains for many traders and investors come after major corrections.
And this holds true for investors, position traders, swing traders, and even day traders — opportunity always follows panic, just on different timeframes.
⚠️ This doesn’t mean blindly buying while the market is crashing. You still need to know when buyers are stepping back in, manage risk carefully, and size positions properly.
And it doesn’t just apply to bear markets — whether it’s a bull market pullback, a longer-term base, a full-blown correction, or a new secular trend, each offers incredible opportunities if you know how to identify them and control risk.
If you don’t understand what that means, it’s time to study more — or you’ll likely become one of the next victims when volatility returns.
Trading Wisdom from Market Wizards
“Although the cheetah is the fastest animal in the world and can catch any animal on the plains, it will wait until it is absolutely sure it can catch its prey. It may hide in the bush for a week, waiting for just the right moment. It will wait for a baby antelope, and not just any baby antelope, but preferably one that is also sick or lame. Only then, when there is no chance it can lose its prey, does it attack. That, to me, is the epitome of professional trading.”
— Mark Weinstein, Market Wizards (Jack D. Schwager)
Everyone talks about finding their edge in trading.
Truth is, most people already have access to proven systems — from traders like William O’Neil, Dan Zanger, or Kristjan Kullamägi.
The problem isn’t the system. It’s the discipline to follow it.
Trading is no different from health or wealth. Most people know what to do — they just don’t do it.
The real edge? Discipline. Emotional control. Doing the small things right.
Because if you can’t master those, no strategy will save you.
The markets don’t just test your edge — they test you.
“The most important is discipline—I am sure everyone tells you that. Second, you have to have patience; if you have a good trade on, you have to be able to stay with it. Third, you need courage to go into the market, and courage comes from adequate capitalization. Fourth, you must have a willingness to lose; that is also related to adequate capitalization. Fifth, you need a strong desire to win.” -Gary Bielfeldt
“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
Traders say short timeframes are “random” or “too risky.” But it’s not the market—it’s them.
Scalping fails most people because:
They can't react fast enough
Their emotions break under pressure
Fix those, and the edge is there. It's not the timeframe. It's you.
“You can’t let a losing trade get to you emotionally.”
-Gary Bielfeldt
Timeless wisdom exists for living well and trading successfully, yet most ignore it. They’ll fail or suffer until pain forces the same lessons—then change, and win.
“Although the cheetah is the fastest animal in the world and can catch any animal on the plains, it will wait until it is absolutely sure it can catch its prey. It may hide in the bush for a week, waiting for just the right moment. It will wait for a baby antelope, and not just any baby antelope, but preferably one that is also sick or lame. Only then, when there is no chance it can lose its prey, does it attack. That, to me, is the epitome of professional trading.” - Mark Weinstein
Why do markets always repeat the same cycles?
Because humans don’t change. No amount of tech, AI, or speed removes fear and greed.
A quick thread on why Larry Hite’s quote is the most timeless market truth.
"The markets may change, but people won’t." — Larry Hite
Assets evolve:
Tulips 🌷
Railroads 🚂
Dot-coms 💻
Crypto 🚀
AI 🤖
But the emotions stay the same.
We chase returns when it’s good.
We panic sell when it’s bad.
We tell ourselves, "This time is different."
It never is.
The market humbles everyone eventually. It’s not about predicting every move. It’s about surviving long enough to let your edge work. Discipline beats brilliance over time.
In the end, it’s not your strategy that determines success— it’s your ability to stay disciplined when fear, greed, or boredom take over. Long-term survival comes down to emotional control. Because even the best edge is worthless if you can’t execute.
Trade Small—Because You’re as Bad as You’ll Ever Be
What’s the most important advice you could give a new trader?
Richard Dennis—one of the greatest traders of all time—nailed it:
“Trade small because that’s when you are as bad as you are ever going to be. Learn from your mistakes. Don’t be misled by the day-to-day fluctuations in your equity. Focus on whether what you are doing is right, not on the random nature of any single trade’s outcome.”
This advice is simple but brutally hard to follow—especially when you’re new, excited, and convinced you’re about to double your account in a week.
Trading small feels slow. It feels like you’re wasting time. But in reality, you’re buying the most valuable thing: experience without blowing up your account.
When you start, you’re guaranteed to be bad. You don’t know how you’ll react when you’re down. You haven’t faced the market’s randomness or your own emotions. You don’t have a system you trust yet.
Trading small gives you room to make mistakes and survive. It keeps you in the game long enough to learn the only lesson that matters: Your job is to trade well, not to chase outcomes.
A good trade can lose. A bad trade can win. The outcome of one trade is noise. What matters is sticking to your process—over, and over, and over.
Ironically, if you master that, the money eventually comes. But it starts with humility, discipline, and sizing small until you’ve earned the right to size up.
Stay small. Stay alive. Keep learning.
