• The markets are not random.

  • Don’t get caught in a situation where you can lose a great deal of money for reasons you don’t understand

  • Patience – wait until a trade is so compelling that you can’t stand the thought of not taking it

  • Focus on maximizing gains over number of wins

  • Preserve capital and wait patiently for the right opportunity to make the extraordinary gainzz

  • Expect the extreme! The unexpected and impossible happen from time to time

  • Maximize profits, cut losses quickly

  • If you have an edge (and you have to have an edge), be ready and willing to bet the house on it

  • Never hold a position that gaps against you right after you put it on

  • There must be a non-random pattern, and you must identify and trade it appropriately

  • Trades that are difficult to take are often the successful ones

  • If the trade goes wrong, how do I get out?

  • You can’t win if you’re trading a leverage size that makes you fearful of the market

  • Know when you’re getting out before you get in

Gleaned from The New Market Wizards: Conversations with America’s Top Traders by Jack D. Schwager