Blueberry Wizards - A GMX Blueberry Club and Market Wizards Collaboration. This is Chapter #1 of the Blueberry Wizard Magnum Opus.

Ed Seykota's Market Wisdom: The Art of Getting What You Want

Ed Seykota, featured in the first Market Wizards book by Jack D. Schwager, is known as “one of the best traders of our time” and has an uncanny ability to extract immense profits from financial markets.

“For example, as of mid-1988, one of his customer accounts, which started with $5,000 in 1972, was up over 250,000% on a cash-on-cash basis. (Normalized for withdrawals, the account theoretically was up several million percent.) I know of no other trader who has matched this track record over the same length of time.” - Jack D. Schwager, Market Wizards

Starting from the bottom, Ed used math to turn pennies into millions and then began helping others learn how to succeed. Read this direct quote from legendary trader Michael Marcus on how he went from failure to success with Ed’s guidance.

Seykota is a master of psychology, which is a critical element of his success. His profound statement, “Everybody gets what they want out of the market,” forms the backbone of his trading philosophy. Here are the top five trading and investing strategies that should resonate with traders at all levels—especially newer traders like me and my friends in the GBC.

Top 5 Key Trading Lessons from Ed Seykota:

1. Markets Reflect Personal Desires:

• Seykota believes traders unconsciously shape their outcomes to fulfill deep-seated desires. Whether winning for validation or losing for martyrdom, markets reveal one's internal priorities.

Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.

2. The Role of Psychology:

• Psychology isn't just part of trading; it’s the driver. According to Seykota, the analysis provides the roadmap, but psychology determines how effectively it's followed.

A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That's the kind of thing winning traders do.

A lot of people would rather understand the market than make money.

3. Simplicity Over Complexity:

• Seykota emphasizes streamlined trading strategies. His work demonstrates that keeping things simple can outperform convoluted approaches.

“My style is basically trend following, with some special pattern recognition and money management algorithms…

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.”

4. The Trend is King:

• Following trends is a cornerstone of Seykota’s strategy. He advises staying with the trend unless clear signs indicate a reversal.

“Over time, I have become more mechanical, since (1)1 have become more trusting of trend trading, and (2) my mechanical programs have factored in more and more "tricks of the trade.

I still go through periods of thinking I can outperform my own system, but such excursions are often selfcorrecting through the process of losing money.”

5. Risk Management Matters:

• Seykota's golden rule: “Risk no more than 1% of your capital on a single trade.” This limits losses and minimizes emotional stress.

The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.

There are old traders and there are bold traders, but there are very few old, bold traders.” - Ed Seykota

Now that you know the top five most important trading and investing strategies for Ed’s success, let’s dive into how you can improve your investing and trading through suggestions from Ed Seykota’s success formula.

Summary Tips and Tricks for Success:

1. Take Time to be Self-Aware and Reflect on Your True Goals: Uncover what you genuinely want. Self-awareness is crucial.

2. Embrace Discipline: Stay consistent with your strategy and avoid impulsive decisions.

3. Value Simplicity: Strip down your trading to essential principles.

4. Respect Risk: Manage position sizes and never risk more than you're comfortable losing.

5. Ride the Trend: Let winners run and cut losers short.

Ed Seykota’s wisdom transcends trading mechanics and delves into the core of human behavior. Whether you're a beginner looking to build discipline or a seasoned investor seeking a mindset reset, these principles will keep you grounded and aligned with your goals.

In honor of Ed, the Blueberry Wizards have chosen GBC #7755 in his honor to be the genetic makeup of the Ed Seykota Blueberry Wizard.

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