Long before trading systems, backtesting, and high-speed execution, there was Speculation as a Fine Art and Thoughts on Life. First published in the early 1900s and often attributed to Dickson G. Watts, this short book offers a rare thing in trading: timeless wisdom.

Despite being written more than a century ago, I still use a few of its core principles in my trading today. They’ve shaped the way I think about markets—and about life.

If you’ve never read it, you can find the full PDF here:
👉 Speculation as a Fine Art and Thoughts on Life (PDF)

1. “The elements of success in speculation are: Self-reliance, Knowledge, Experience, and Calmness.”

These four words are more relevant than ever.

• Self-reliance is why I believe in building your own system—not copying someone else’s.
• Knowledge is why we created the MarketMates Learn section.
• Experience is why every trader needs time in the market to truly find their edge.
• Calmness? That’s your superpower when markets get messy.

2. “The man who can be right and sit tight is uncommon.”

Holding your winners is harder than it sounds. It takes confidence, conviction, and a clear plan.

At MarketMates, we focus on helping traders build those plans—so when a good trade comes along, you don’t cut it short out of fear or impatience. We believe in trading with purpose, not noise.

3. “The average operator is apt to lose more by overtrading than from any other reason.”
(And: “Add to a position only when it is a clear winner, and do it with caution.”)

Most traders focus on getting in. But what you do after the entry matters just as much.

One of the most underrated skills is knowing when—and how—to scale into a winning trade. Watts warns against blindly adding, and he’s right. I’ve seen more accounts damaged by aggressive pyramiding than by initial risk.

When you’re ahead, you want to protect your edge, not overexpose yourself.

At MarketMates, we encourage a structured approach: only add when a trade is clearly working and the market context still supports it. Even then, do it smaller, with defined levels and rules in place. Confidence is good. Complacency isn’t.

4. “Losses must be cut quickly.”

It’s old advice, but it works.

Risk management is at the heart of what we teach. No amount of strategy matters if you can’t manage your downside. That’s why one of the first rules we share with new traders is: keep your losses small, and consistent.

Final Thoughts

There’s something grounding about reading a book like this. It reminds you that markets change, but human nature doesn’t. The same psychological battles traders faced in the 1900s? We still face them today.

If you’re serious about trading, take the time to read it. You might be surprised how much of it feels relevant.

👉 Read the book here (PDF)