Today's Quote: “We have forty million reasons for failure, but not a single excuse.” Rudyard Kipling.

There are several good books out there about trading that should be on every trader’s must read list. If you were forced to choose one and only one, the only possible pick would be “Tools and Tactics for the Master Day Trader”. We are going to run a series of excerpts from the best selling book for the next series of lessons. Now in the words of the master trader himself, Oliver L. Velez…

“12 Trading Laws of Success” –

LAW #12: DON'T EVER MAKE EXCUSES—THEY NEVER MADE ANYONE A DIME

"You can make excuses, you can make money, but you can't do both." We find this wise statement so incredibly true, on virtually all fronts. But it particularly rings true for traders. As active stock market players, we deal with complexity and the shadows of uncertainty each day. In our search for consistent profitability, we take real risks (albeit intelligent ones) with our hard-earned capital with every passing trade. The word "difficult" does not even come close to describing the trader's plight. Yet, the real trader acts. When you think about it, it's quite amazing. The path that leads to trading success is no easy one. We all know that. Yet thousands of us survive and choose to press on each day. The arduous journey to the high lands of consistent profitability is one we all hope to complete. And while many do fall by the wayside, there are those who continue the good race. Consistently, beginning traders flirt with financial doom. Daily they baffle the psychological demons that stand in their way. And despite the enormous difficulty, the extreme hardship involved in being successful as a trader, we are thoroughly impressed with the fact that there remain some who refuse to make excuses. And it is those who ultimately wind up making the money, that "sweet dollar," to use another term. Whenever I am down and out, beaten up by a soulbending losing streak—and we all have them—I remind myself that no one ever promised me that a successful life, or successful trading, would be easy. Yes, excuses can be easily made. But they never put a dime in the pockets of their promoters. I love and respect traders—the real ones that is because they recognize that courage is best described as being afraid and "doing * anyway." Excuses are for losers. The real money, that "sweet dollar," will always go to those who recognize that. So when getting after the Mighty Moby Dick, don't bring excuses, bring tartar sauce.

Trading is the last bastion of total freedom. The partners in law and accounting firms really work for their clients. Doctors really serve their patients. Traders work for and serve only themselves. No one can rightfully lay claim to the traders' successes, because it can only come from within. And failure cannot be co-owned or passed off to others. In short, traders live in a world that is all their own. Every peak and every valley belong to them. But because there is nowhere to hide or escape the personal responsibility of each act, losing traders often find it easier to create excuses. Blaming others makes it psychologically easier to cope with shortcomings. Accusing a newsletter, blaming an analyst, and faulting the Wall Street system are just a few of the ways losers evade the fact that they alone are responsible for their decisions. Don't become one of these excuse makers. The path they are on is clear. The final destination, which can only be failure, is already known. Take full responsibility for your every action in the market. Recognize with deep honesty that no one has the power to make you act. Know in your heart that the final endorsement of any act belongs only to you. The very best traders live their lives in a world built on self-reliance and total independence. In that world, the fault for all losses lie with themselves, but also, they know that they have a right to lay claim to all the wonderful gains. And the traders who make no excuses will eventually have many more gains than losses.