High probability

I'm currently reading the book, "High Probability Trading". I first heard of it through the Trade on Sports blog recommended book list. Our book tastes seem very similar, so I thought I'd check it out and I'm glad I did. So far, I'm only about a quarter of the way through, but it has been really good so far. The first part was quite re-inspiring. It talks about, what the author calls, the cost of learning. He says, "From everything I've ever heard, read and seen, a trader needs about 3 to 5 years to get through the learning period. During this time in which he is learning and honing his skills, a trader will be paying his 'tuition of trading' the same way lawyers, chefs and doctors pay to learn their craft". Okay, so 3 to 5 years wasn't that reassuring, but I found that looking at early losses as tuition fees was.

Another piece of advice that I liked was to concentrate on PPC, which means "preserving previous capital". He says, "forget about making money, just try as hard as possible not to lose any" and "The key to being a winning trader is to not lose a lot when you lose. If you cut losses, the winning trades will take care of themselves".