Silver Fox

If you think your last winner “made your money back”… You’re still trading like you’re broke. Winners don’t just recover. They reload. That trade just funded your next 5 shots.

“My biggest losses have come after my biggest winners because I started to think I knew something.” -Almost every trader on the planet

Trading isn't just about monster winning trades. It's about the hundreds of losing ones in between. Why? Losing trades are usually the reason people quit. The monster winners are just a carrot on a stick: Everybody wants it. Are you willing to walk through hell to get it?

You have come a long way when you stop trying to find the perfect buy point and instead start focusing on: Self growth, psychology, and discipline. As Richard Dennis said: “You could publish my system in the Wall Street Journal but nobody would have the sense to follow it.”

Think of your favorite and most successful trader: Are they superhuman? Do they constantly get lucky? Do they have inside information? Do they always win and never lose? They are human just like you. You have the ability to do it. You just need to discover it.

Here is a mental trick: Most traders view a big winner as “paying back the last 5 losers.” That’s boring. It sounds like paying back debts. Instead, think it as “paying for 5 free trades.” Same thing, different mindset.

Fools look for excuses. Wise men look for where they went wrong.

Learning to trade is like putting together a 10,000 piece puzzle: And after countless hours of trying to put it all together... The final picture simply reads: “MANAGE RISK”

Stock market shakeouts are like shaking a tree to dislodge the fruit; The weak ones drop very easy on the first shake. The stronger ones require a few good shakes to break them loose. This is why bases have multiple shakeouts within their structure.

Most traders limit themselves to technical and fundamental analysis... But the most important part of trading is mental analysis. You must understand how your emotions and beliefs affect your thought process and behavior. A winning mindset is your edge. Champions know this.

The market is extremely patient; It will continuously teach you the same lessons over and over and over as many times as it takes for you to finally learn the lessons that it is trying to teach you.

Once you learn how to buy strong leaders during temporary weakness… You start enjoying market pullbacks instead of fearing them.

Many traders read all the books and knew what they were supposed to do... But still failed due to a mindset that prevented them from doing what they knew they should. When they became successful, the markets didnt change. The tools they used didnt change. The TRADER changed.

If you flip a coin, do you expect that you will be right? Probably not, because you know its 50/50. You dont feel “dumb” if you are wrong. When trading stocks, most traders expect certain results for their trades, and therefore are emotionally vulnerable to the outcome.

You are watching TV because you are looking for hot stock tips and they recommend BUYING $AAPL stock. You are reading internet articles for the same reason and they recommend SELLING $AAPL stock. Who is right? Nobody knows what will happen next. NOBODY.

You’re not “getting your money back.” That’s the wrong story. A winning trade is you buying
5 future shots… for free. Instead of thinking recovery, try thinking opportunity.

If a rookie trader makes money from a hot stock tip, he is thankful but learns nothing. If a rookie trader loses money from his own decisions, he may be unthankful but learns something. Finding hot stock tips online is not a strategy for success.

Some traders buy a huge position and then choose where to put their stop based on how much money they are willing to lose. This results in a tight stop. Flip the equation: Put the stop where it should be, then calculate position size based on how much you are willing to lose.

Want 5:1 risk-to-reward trades? The answer isn’t your target—it’s your stop. Improve your timing and you can reduce your stop. Same profit target. Higher RR ratio.