Pedigree is more marketing than a predictor of success

Subscribe to the show

I don’t know of a single factor or variable in your life that will have more of an impact on your long-term success in trading than keeping your losses small.

Pedigree won’t mean much if you can’t enter your protective stops and keep losses small.

“Deep Thoughts” was written by Jack Handey, not Al Franken. I misspoke at the beginning of the episode.

Click here to  get your free copy of The Inner Voice of Trading audiobook.

Why trading without stops is gambling

Subscribe to the show

Trading is about expected values.

The determining factor in establishing those values is the placement of your stops – your stops to enter trades, exit losers, and to exit winners.

If you wing any part of these, the expected value of your trading goes out the window.

At that point, you are putting your whole enterprise up for a gamble.

Click here to  get your free copy of The Inner Voice of Trading audiobook.