More Trading Wisdom from Richard D. Wyckoff

Hello Traders,

I came across this quote many years ago from Richard Demille Wyckoff, and it has served me well.

Richard D. Wyckoff

As for the latter, I noticed a very marked tendency to accept a small profit and stand for a big loss.”  – Richard Demille Wyckoff

This quote reminds me of my 3 primary rules of trading:

  1. Cut Your Losses Short
  2. Let Your Profits Run
  3. Take Profits on the Ride!
In other words, it should be noted most successful traders I have come across do not simply take a profit just because it is there.  They let the move go a certain distance and have a plan on how to attack the market.

This is part of your trading plan.  You should know your entry, but in addition, you should know your profit target and your stop loss before the trade is placed.  This, in my humble opinion, gives you the best chance for success on a trade.

Expect to lose more than you win as a trader, but look to take out more money on your wins than your losses to offset your trading endeavors.

I believe there is a lot of trading wisdom in this quote from Wyckoff, and we would do well to remember it as traders ourselves.

Good Trading,

David ‘Tiger’ Knight



About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.