“The less I cared about whether or not I was wrong, the clearer things became, making it much easier to move in and out of positions, cutting my losses short to make myself mentally available to take the next opportunity.” -Mark Douglas
“You need to ‘change your thinking’. The goal is to reach a ‘care-free state of mind’. When a pattern presents itself, don’t think. There’s nothing to think about. Take the trade because you have an edge. Then odds, probability and your risk control mechanisms will take care of everything. In the end, the key is to learn more about yourself. The most important lesson though is the importance of viewing every single trade as being part of a series of trades.” -Mark Douglas
"In a narrow market when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be- up or down. The thing to do is watch the market, read the tape to determine the limits of the get-nowhere prices, and make up your mind that you will not take up interest until the price breaks through the limit in either direction- Jesse Livermore
"When I put on a trade, all I expect is that something will happen."- Mark Douglas
"It always seems the best trades are the small ones you don't care about. In that case, make them all small and let the power of the option and whatever edge you use do its thing."
"When dealing with options, using stops take you out of the trade entirely. You never really know what the market will give you on any given day. If one assumes a 100% loss right from the start, and sizes their position appropriately, you can let the position expire painlessly but still have a position to take advantage of if something crazy happens within your option timeframe."
"Despite your best efforts, you never really know which edges are going to work and which aren't so stop trying to predict outcomes. By taking every edge, you increase your sample size of trades, which in turn gives whatever edge you are using ample opportunity to play itself out in your favor, just like the casinos."- Mark Douglas
"One of the most helpful things that anyone can learn is to give up trying to catch the last eighth- or the first. These two are the most expensive eighths in the world. They have cost stock traders, in the aggregate, enough millions of dollars to build concrete highways across the continent."- Jesse Livermore
"It is exactly like options, trial and error, not getting stuck, bifurcating when necessary but keeping a sense of broad freedom and opportunism. Trial and error is freedom.”- Nassim Taleb
"Markets are simple in that $1 in and $1 dollar out at end of day only generate trading volatility but does little to push prices higher. Markets need buyers who are willing to hold invesments overnight to sustain price moves. When these are absent, markets drop until levels are reached when these same buyers feel prices and conditions are attractive enough to hold investments longer term."