ZF Capital

Are you in a bull market? Are you in a bear market? Or, are you in a trading market? lf you are to extract profits from these markets you must apply the correct methods to trading these markets. If you incorrectly assess your market stage, your trading decisions will be flawed. They will be flawed not because the trading decisions are in themselves bad, but because the premise upon which you apply these decisions is incorrect. Most readers instead blame the trading decisions as being bad.

– William Eng, Trading Rules II

You’ve got to earn money in the markets to be able to keep it from the markets. For example, if a trader who takes on large position risks makes a bundle of money, he will eventually lose it all because the manner in which he made the money will also be the way in which he loses it all. To earn money in the markets you must trade conservatively with your capital and limit your equity and position risks; when your positions start to show profits you must let those positions run up.

– William Eng, Trading Rules II