Option Income: Creating Income Through High Probability Trades

Risk Management:

"Trading Quotable Quotes
for Successful Trading"

On Risk and Risk Management 

"Don't ever average losers. Decrease your trading volume when you are trading poorly; increase your volume when you are trading well."

Pual Tudor Jones

"If I have positions going against me, I get right out; if they are going for me, I keep them... Risk management and control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in."

Pual Tudor Jones

"The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance."

Ed Seykota

"To whatever degree you haven't accepted the risk, is the same degree to which you will avoid the risk. Trying to avoid something that is unavoidable will have disastrous effects on your ability to trade successfully."

"First, if you never bet your lifestyle, from a trading standpoint, nothing bad will ever happen to you. Second, if you know what the worst possible outcome is, it gives you tremendous freedom. The truth is, while you can't quantify reward, you can quantify risk."

Larry Hite

"Be quick to take losses, reluctant to take profit."

Philip Carret

"Trading without proper risk management is like driving without brakes or with worn out tire threads - it is extremely dangerous and bad for health."


"Knowing when to take a loss is extremely important. It's very simple: If you don't take your losses in the trading pit, you can't play with us in the pit for very long."

Charlie P. DiFrancesca

"Don't focus on making money; focus on protecting what you have."

Paul Tudor Jones

"I always define my risk, and I don't have to worry about it. I walk into the pit everyday with a clean slate, so that I can take advantage of what is going on."

Tony Saliba

"The market will decide how much profit to give you. Only you can decide how much to limit your loss."

Linda Raschke

"Just as there are an enormous number of strategies we might employ in trading, there are a whole flock of different defenses, and combinations of defenses, that we might usefully apply during a trade in any particular strategy. We can learn about and apply these and other defensive tactics, or we can passively accept a loss when the trade goes against us. If we choose the later road, we will end up surrendering an enormous amount of capital and practical advantage over time, and to absolutely no purpose."


"Start small. Change can be brought about simply by becoming aware of what you are doing. This increase in conciousness will give you choice in controlling your automatic responses in your activities. This can have profound effects on how you trade. Small changes in your trading can provide proof that you can have an impact on your life. From this you will learn how to harness the power that is released in the process of changing. Keep making small adjustments to keep aligned with your goal. Don't push too hard. You only need to concentrate on producing concrete results."

Ari Kiev, M.D.
Book: Trading to Win

"If you have a good risk management in place, profit will come along as nice by-product."


Comments from our site visitor(s)

All my life I thought I needed to learn how to WIN...it's learning how to LOSE and TAKE LOSSES that makes the strategies work!

Todd Hudson
NC, United States

Trading Quotable Quotes Main Page - On Risk and Risk Management

TQQ Part 2 - On Being Patient / Mr Market and Respecting the Market / Market Timing / Trading the News

TQQ Part 3 - On Stock Selection / Success Rate of Trades vs Making Money / Entries & Exits

TQQ Part 4 - On Setting Stop Losses and Preserving Capital / Outcome of Trades / Technical Analysis / Trader's Mindset, Belief System & Investment Psychology / Contrary Trading

TQQ Part 5 - On Trend Following / Going With The Flow / Letting Winners Run / Averaging Up / Discipline / Recovery

TQQ Part 6 - General Topics related to Trading

Option Trading Quotable Quotes

Fundalmental Quotable Quotes

Non Trading Related Quotable Quotes

Option Income Picture: One-Pound Option Income Picture: One-Pound

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