The Whipsaw Song by Ed Seykota and Trading Tribe Band

Just came across a pretty interesting video (see below) by Ed Seykota of Market Wizards fame. Well worth watching for trend-following traders.

Quotes from The Whipsaw Song (the actual lyrics are here)

  • You get whipped and I get sawed, one good trend, pays for them all! (the actual lyrics are “You get a whip and I get a saw”, but personally I prefer my version =))

Ride Your Winners

  • Now what do we do when we catch a trend?
    • We ride that trend right through the end!

Cut Your Losses

  • Well what do we do when we show a loss?
    • We give that dag-gone loss a toss!

Manage Your Risk

  • Well how do we know when the risk is right?
    • We make a lot of money and we sleep at night!

Use Stops

  • Well what do we do when the price breaks through?
    • Our stops are in so there’s nothing to do!

Stick to the System

  • What do you when the drawdown comes? What do you do when it gets real big? What do we do when it’s even bigger?
    • We stick to the plan and pull the trigger!

File the News

  • Now what do we do with a hot news flash?
    • We stash that flash right in the trash!



No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Copyright © 2005-2014 All Rights Reserved.

Enter your email address to follow this blog and receive notifications of new posts by email.

Blog Stats

  • 398,385 hits
%d bloggers like this: