Trading & Wisdom Quotes

Keep a Cash Reserve & Be Patient

2010-05-09T22:11:00.000+08:00

There are times when playing the stock market that your money should be inactive - waiting on the sidelines in cash - waiting to come into play.

In the stockmarket - time is not money - time is time and money is money.
Often money that is just sitting can later be moved into the right situation at the right time and make a vast fortune – patience – patience.

Patience is the key to success not speed.
Time is a cunning speculator's best friend if he uses it right.

Remember the clever speculator is always patient and has a reserve of cash.

Jesse Livermore

Warren Buffet’s Investment & Life Wisdoms

2010-03-03T10:21:00.003+08:00

Spending: If you buy things you don't need, you'll soon sell things you need.

Savings: Don't save what is left after spending; spend what is left after saving.

Hard work: All hard work brings profit; but mere talk leads only to poverty.

Laziness: A sleeping lobster is carried away by the water current.

Earnings: Never depend on a single source of income.

Borrowings: The borrower becomes the lender's slave.

Accounting: It's no use carrying an umbrella, if your shoes are leaking.

Auditing: Beware of little expenses; a small leak can sink a large ship.

Risk-taking: Never test the depth of the river with both feet.

Investment: Don't put all your eggs in one basket.

By: Warren Buffet

Learning from Mistakes

2010-03-03T10:07:00.001+08:00

Don't call it a mistake, call it an education.

Thomas Edison

The Limit of Your Abilities

2009-10-21T20:59:00.001+08:00

When a man has put a limit on what he WILL do,
he has put a limit on what he CAN do.

Charles Schwab

Good Trading Quotes from “Techniques of Tape Reading”

2009-10-11T22:21:00.002+08:00

This (Trading) is not a job where you get paid by the hour.
You get paid for doing the right thing.

Forget that your money is at stake. Money in trading account is just a tool for making money. Preserve your tool. You need it to make money.

Don’t let the outcome of one trade alter your trading discipline. One trade doesn’t make a system…

Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules.

You decide your fate; the market doesn’t.

Pure followers of stock pickers will never be around… Learn or you are bankrupt.

Be aggressive in trending market and conservative in choppy market.

Take home runs when you can, but don’t beat yourself up about missing a few.
One trade should never make or break your account.

Vadym Graifer & Christopher Schumacher, Techniques of Tape Reading

Source: http://simplyoptionstrading.blogspot.com/2007/09/quotable-quotes.html

Warren Buffett’s Investment Wisdom

2009-10-07T20:36:00.001+08:00

You want to be greedy when others are fearful,
and you want to be fearful when others are greedy.

Billionaire Warren Buffett

Don’t Ever Quit

2009-10-02T23:12:00.000+08:00

Success seems to be connected with action.
Successful people keep moving.
They make mistakes, but they don't quit.

Conrad Hilton

Great Minds vs. Small Minds

2009-09-30T20:08:00.001+08:00

Great minds discuss Ideas,
Average minds discuss Events,
Small minds discuss People.

Hyman Rickover

Money Management & Positive Expectancy

2009-09-26T09:48:00.002+08:00

A good trading system gives you an edge in the market.
To use a technical term, it provides a positive expectancy over a long series of trials.
A good system ensures that winning is more likely than losing over a long series of trades.
If your system can do that, you need money management.
But if you have no positive expectancy, no amount of money management will save you from losing.

Dr Alexander Elder, Come Into My Trading Room

Risk / Money Management Strategy

2009-02-19T23:49:00.000+08:00

Never risk more than 1% of your total equity in any one trade.
By risking 1%, I am indifferent to any individual trade.
Keeping your risk small and constant is absolutely critical.

Larry Hite

Get Out When You’re Wrong

2009-02-18T23:03:00.003+08:00

Successful traders know that discipline is what allows them to enter their trades when the odds are in their favor and, more importantly, to get out when they’re wrong.
Being right is not the problem. What you do when you’re wrong is the crucial issue.

There are a lot of traders who buy then pray while the market goes against them, because they think that it will eventually go their way.
Most traders average down and wait for the market to turn their way.
Trading my way, I always have defined amount of money that I am willing to lose.
I let the market decide how much money I’m going to make.

Casey (In "“The Logical Trader” by Mark B. Fisher)

Source: Options Trading Beginner

Have A Plan

2009-01-24T13:53:00.001+08:00

In trading, as in life, you need a plan. This plan includes not only the micro – a strategy for each and every trade you make – but also the macro – meaning why you trade, how you intend to reach that goal (your means to the desired end), and what you’ll do as an alternative if that doesn’t work out.

Know what you want to accomplish, how you intend to get there, and what you will do if it does – or does not – work out. Have a plan and stick with it. That works in trading, as well as in life.

Mark B. Fisher, The Logical Trader

Source: Options Trading Beginner

The Importance of Trading Records / Diary

2008-08-03T23:10:00.001+08:00

Records are more important to your success than any indicator, system, or technical tools.
Even the best system is bound to have some holes, but good records will allow you to find them and plug them up.
A person who keeps detailed records makes a huge leap in his development as a trader.

Show me a trader with good records, and I’ll show you a good trader.

Dr Alexander Elder, Come Into My Trading Room

Stop A Losing Streak

2008-07-20T23:02:00.001+08:00

The best way to stop a losing streak is to STOP!….
Stopping lets your emotions calm down and lets you reestablish your momentum with your intellect.

Marty Schwartz

Risk Management & No Overtrading

2008-06-17T23:14:00.001+08:00

Risk management is the most important thing to be well understood.
Undertrade, undertrade, undertrade is my second piece of advice.
Whatever you think your position ought to be, cut it at least in half.

Bruce Kovner

Money Management – Manage Your Downside

2008-05-30T22:58:00.000+08:00

Being wrong is acceptable, but staying wrong is totally unacceptable.
Being wrong isn’t a choice, but staying wrong is.

To play any game successfully, you have to have some skill, an edge.
But beyond that, it is money management.
Good traders manage the downside;
they don’t worry the upside.

Mark Minnervini

Most Important Qualifications for a Successful Trader

2008-05-12T22:49:00.000+08:00

I believe that one of the most important qualifications for a successful trader is “POISE”, which to me is defined as stability, a well balanced person with dignity of manner – as it relates to the stock market.
A poised person is a person who can handle their hopes and their fears in a calm manner.

The other qualification is “PATIENCE” to wait for the opportune time, when as many factors as possible are positioned in the traders favor.
Poise and patience are the close friends of successful traders.

The final qualification is “SILENT”. Keep your own silent counsel – keep your victories and your failures to yourself – learn from them both.

Poise, patience and silence are attributes that must be cultivated.
These virtues do not come automatically to the stock market trader.

Jesse Livermore, How To Trade In Stocks

No 1 Trading Survival Tips: Capital Preservation

2008-04-27T10:01:00.001+08:00

Survive first and make money afterwards.

George Soros

If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.

Larry Hite

Source: otakalawoo

Turtle Trading Principle

2008-04-13T08:19:00.001+08:00

Trade with an edge, manage risk, be consistent, and keep it simple.

The entire Turtle training, and indeed the basis of all successful trading, can be summed up in these four core principles.

Curtis Faith, Way Of Turtle

Three Essential Components Of Trading

2008-04-04T23:01:00.000+08:00

Every winner needs three essential components of trading: a sound individual psychology, a logical trading system and a good money management.

These essentials are three legs of a stool – remove one and the stool will fall together with the person who sits on it.

Losers try to build a stool with only one leg, or two at the most. They usually focus exclusively on trading systems.

Your trade must be based on clearly defined rules.
You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound.
You have to structure your money management so that no string of losses can kick you out of the game.

Dr Alexander Elder, Trading For A Living

Source: Options Trading Beginner

Emotion Is More Important Than Intelligence In Trading

2008-03-30T22:11:00.001+08:00

There is nothing new on Wall Street or in stock speculation.
What has happened in the past will happen again, and again, and again.
This is because human nature does not change, and it is human emotion, solidly built into human nature, that always gets in the way of human intelligence.
Of this I am sure.

Jesse Livermore

Commitment To Excellence

2008-03-23T19:11:00.000+08:00

The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.

Vince Lombardi

Warren Buffet’s Rules of Investing

2008-03-12T13:53:00.000+08:00

Rule number one of investing is never lose money.
Rule number two is never forget rule number 1.

Warren Buffet

Destiny

2008-03-06T18:59:00.001+08:00

Destiny is not a matter of chance,
it is a matter of choice;
it is not a thing to be waited for,
it is a thing to be achieved.

William Jennings Bryan

Knowledge And Patience

2008-02-29T09:18:00.000+08:00

The essential to success in the stock market is knowledge and patience.
So few people succeed in the market because they have no patience and are generally ignorant of the market and finally they want to get rich quickly.

Anyone who figures that his success in dependent upon chance may as well stay out of the market.
His attitude is wrong from the very start.
The great trouble with the average person who buys securities is that they think the market is a gambling proposition.

Jesse Livermore, How To Trade In Stocks

Don’t Be Afraid Of Making Mistakes

2008-02-26T11:20:00.000+08:00

Avoiding mistakes makes people stupid and having to be right makes you obsolete.

Robert Kiyosaki

Stick To Your Trading Rules

2008-02-20T18:53:00.000+08:00

Successful trading is about finding the rules that work and then sticking to those rules.

William J. O’neil

Why Chart Patterns Repeat Themselves

2008-02-17T18:10:00.001+08:00

All through time, people have basically acted and re-acted the same way in the market as a result of: greed, fear, ignorance, and hope.
That is why the numerical formations and patterns recur on a constant basis.

Jesse Livermore, How To Trade In Stocks

Diversification and Sector Rotation

2008-02-13T17:00:00.000+08:00

Traditional investor is taught that a well-diversified portfolio includes stocks from many different at all times. In contrast, the savvy macrowave investor focuses on just a few sectors at any one time.

To the savvy macrowave investor, the traditional investor's strategy of broad "sector allocation" is merely a recipe for very mediocre returns. This is because the traditional investor is always holding, at anyone time, numerous weak sectors that are underperforming.

In contrast, the savvy macrowave investor looks for strong sectors to buy in an up market and weak sectors to short in a down market.
That means holding only a few of best-performing sectors at a time.

Moreover, the savvy macrowave investor regularly changes sectors as the stock market moves through the patterns of sector rotation …

Peter Navarro
When The Market Moves, Will You Be Ready?

Source: Options Trading Beginner

Human Emotion In Trading

2008-02-11T14:56:00.000+08:00

Human emotion is both the source of opportunity in trading and the greatest challenge.
Master it and you will succeed.
Ignore it at your peril.

Curtis Faith, Way Of Turtle

No Point Regretting, Just Move On

2008-02-04T18:29:00.000+08:00

When one door closes, another door opens.
But we so often look so long and so regretfully upon the closed door that we do not see the ones which open for us.

Alexander Graham Bell

Motivation

2008-01-31T11:00:00.000+08:00

You can have anything you want — if you want it badly enough.
You can be anything you want to be, do anything you set out to accomplish
if you hold to that desire with singleness of purpose.

Abraham Lincoln

Secret To Success?

2008-01-28T10:11:00.000+08:00

There are no secrets to success.
It is the result of preparation, hard work, learning from failure.

General Colin Powell

Take Your Trading As A Serious Intellectual Pursuit

2008-01-27T23:16:00.000+08:00

You can succeed in trading only if you handle it as a serious intellectual pursuit.
Emotional trading is lethal.

To help ensure success, practice defensive money management.
A good trader watches his capital as carefully as professional scuba diver watches his air supply.

Dr Alexander Elder, Trading For A Living

What Is Discipline in Trading?

2008-01-24T18:42:00.000+08:00

Discipline means designing, testing, and following your trading system.

It means learning to enter and exit in response to predefined signals rather than jumping in and out on a whim.

It means doing the right thing, not the easy thing.

And the first challenge down the road to disciplined trading involves setting up a record-keeping system.

Dr Alexander Elder, Come Into My Trading Room

4 Kinds of Bets in Trading

2008-01-11T23:12:00.000+08:00

There are just four kinds of bets. There are good bets, bad bets, bets that you win, and bets that you lose.

Winning a bad bet can be the most dangerous outcome of all, because a success of that kind can encourage you to take more bad bets in the future, when the odds will be running against you.

You can also lose a good bet no matter how sound the underlying proposition, but if you keep placing good bets, over time, the law of averages will be working for you.

Larry Hite

Source: The 3500

Just Flow With The Market

2008-01-07T22:56:00.000+08:00

My philosophy is to float like a jellyfish and let the market push me where it wants to go.

Stuart Walton

Source: Vix And More

Trading Plan & Discipline

2007-12-06T22:47:00.000+08:00

Just remember, without discipline, a clear strategy, and a concise plan, the speculator will fall into all the emotional pitfalls of the market and jump from one stock to another, hold a losing position too long, cut out of a winner too soon and for no reason other than fear of losing the profit.

Greed, Fear, Impatience, Ignorance, and Hope will all fight for mental dominance over the speculator. Then, after a few failures and catastrophes the speculator may become demoralized, depressed, despondent, and abandon the market and the chance to make a fortune from what the market has to offer.

Jesse Livermore, How to Trade in Stocks

Source: Solitary Trader

Defensive Game

2007-12-03T14:35:00.000+08:00

We approach markets backwards. The first thing we ask is not what can we make, but how much can we lose. We play a defensive game.

Larry Hite

Source: The 3500

Positive Expectancy & Position Sizing

2007-11-30T11:43:00.000+08:00

Your trading style forms a basis for your beliefs about how to enter the market.

This is important because you really only trade your beliefs about the market. It’s very hard to trade something that’s going up if you believe it is overvalued.
Similarly, it’s very hard to trade something that’s considered undervalued, if you believe (because it is going down) that it will continue to go down.

But it really doesn’t matter what framework you select for picking your trades or investments. That’s only the starting point for real success.

What’s really critical is that you understand that you make money by cutting losses short and letting profits run. This will give you a positive expectancy system.

And if you can do it in such a way so as to develop a good system, then you can probably achieve your objectives through the appropriate use of position sizing.

And if you can continue to do this without making many mistakes, then you’ll probably be happy with the results.

These are the real keys to investment success.

Van K. Tharp

Source: IITM Weekly Update

Go Find Other Opportunities

2007-11-28T11:11:00.000+08:00

Instead of crying over spilt milk, go milk another cow.

Unknown

The Importance of Sector Rotation

2007-11-26T12:57:00.000+08:00

If you’re in the right sector at the right time, you can make a lot of money very fast.

Peter Lynch

Source: Options Trading Beginner

A Perspective of Risk

2007-11-22T12:10:00.000+08:00

If you don’t risk anything, you risk even more.

Erica Jong

Trading Discipline

2007-11-20T18:39:00.000+08:00

Don’t let the outcome of one trade alter your trading discipline. One trade doesn’t make a system.

Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules.

Take home runs when you can, but don’t beat yourself up about missing a few. One trade should never make or break your account.

Vadym Graifer & Christopher Schumacher, Techniques of Tape Reading

Source: Simply Options Trading

Perfect Speculator

2007-11-16T14:24:00.000+08:00

Perfect speculator must know when to get in;
More important he must know when to stay out;
And most important he must know when to get out once he’s in.

Unknown

Trading Mistake & Self-Sabotage

2007-11-14T12:01:00.000+08:00

My definition of a mistake is when you don’t follow your rules.
And if you don’t have rules, then everything you do is a mistake.
And self-sabotage occurs when you keep repeating the same mistakes over and over and over again.

Van K. Tharp

Source: IITM Weekly Update

Dreams vs. Actions

2007-11-11T23:10:00.000+08:00

Dreams will determine what you want in life.
Actions will determine what you get in life.

Unknown

Emotional Discipline: The Key To Trading Success

2007-11-04T16:29:00.000+08:00

The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.

Victor Sperandeo

Source: Trading Quotes

What We Can Learn For Trading From A Fable

2007-11-01T22:50:00.000+08:00

A monkey was carrying two handfuls of peas. One little pea dropped out. He tried to pick it up and spilt twenty. He tried to pick up the twenty and spilt them all. Then he lost his temper, scattered the peas in all directions and ran away.

Fables, Leo Tolstoy

Source: The 3500

Psychological Bias To Be Right vs. Making Money

2007-10-30T11:17:00.000+08:00

There is a strong psychological bias to be right about we do with our investment. In most people, this bias greatly oversides the desire to make a profit overall in our approach, or it inhibits us from reaching our true profit potential. Most people have overwhelming needs to control the market. As a result, they end up with the market controlling them.

Van K. Tharp

Source: Options Trading Beginner

No Short-Cut To Be A Success

2007-10-26T18:57:00.000+08:00

Become one of the successful few who build stone upon stone until they have a solid foundation of knowledge and experience which will last them all their lives.

You cannot go into any phase of endeavor and make money or become prominent "just like that" - you must serve your apprenticeship.

Richard Wyckoff

Source: Stox Investor

What's The Real Purpose of Trading?

2007-10-24T15:31:00.000+08:00

The real purpose of trading is not to make money. If that's your goal you probably struggle with it a lot. But all of the following tend to work.

If you goal is to be a great trader, then you probably will do well.

If you goal is to use trading as a way to measure your self-development, then you will probably do well.

If you just love trading and that's why you do it, then as long as you are willing to work on yourself you will probably do well.

Those, in my experience, are the key motivations that bring success in trading.

Van K. Tharp

Source: Smart Trader Blog

A Perspective of Trading Losses

2007-10-22T12:52:00.000+08:00

Only 3 things in life are certain: Death, taxes, and that every new investor inevitably pays “tuition” to the market.

Ron Vara

Hard Work

2007-10-19T13:57:00.000+08:00

Genius is 1% inspiration, 99% perspiration.

Thomas Edison

Pay Attention To Sector Rotation

2007-10-17T18:27:00.000+08:00

If you’re really looking to try to outperform the market, investing in even the best stocks in under-performing sector isn’t the way to do it.

CNBC’s Bob Pisani

Excellence

2007-10-14T23:51:00.000+08:00

We are what we repeatedly do.
Excellence, therefore, is not an act but a habit.

Aristotle

Perseverance

2007-10-10T12:11:00.000+08:00

There is no failure except in longer trying.

Elbert Hubbard

Keep On Trying

2007-10-08T18:49:00.000+08:00

How hard you try is rooted to how often you try.

Doug Hall

The First 3 Money Management Rules

2007-10-02T13:40:00.000+08:00

The First 3 Money Management Rules are:
1. Cut your losses
2. Cut your losses
3. Cut your losses

But you must also learn to “let your profits run”.

Peter Navarro

Good Money Management Is The Key

2007-09-27T15:31:00.000+08:00

You can give anyone the best tools in the world and if they don’t use them with good money management, they will not make money in the markets….
We’re convinced that a person could make a profit simply by buying and selling the markets according to the dart board if they followed all the right things as far as money management is concerned.

Welles Wilder

Risk Management & Diversification

2007-09-24T13:53:00.000+08:00

Mr. Stupid, why risk everything on one trade?

Paul Tudor Jones

Trading System Helps Control Your Emotion

2007-09-21T18:59:00.000+08:00

The trading system gives the trader the ability to control his or her emotional states rather than allowing them to control him. A system is a disciplined method for organizing dynamic, ever-changing market phenomena.

Bill Lipschutz

Emotional Makeup Is More Important

2007-09-16T11:33:00.000+08:00

I haven't seen much correlation between good trading and intelligence. Some outstanding traders are quite intelligent, but a few aren't. Many outstanding intelligent people are horrible traders. Average intelligence is enough. Beyond that, emotional makeup is more important.

William Eckhardt

Source: Trading Quotes

The Greatest Mistake

2007-09-08T17:00:00.000+08:00

The greatest mistake you can make in life is to continually be afraid you will make one.

Elbert Hubbard

Golden Rules of Investing

2007-09-04T13:56:00.000+08:00

Three Golden Rules of Investing:
1) Buy strong stocks in the strong sectors in an upward trending market.
2) Short weak stocks in the weak sectors in a downward trending market.
3) Stay out of the market and in cash when there is no definable trend

Peter Navarro

Trading Psychology - The Key to Trading Success

2007-09-03T18:48:00.000+08:00

The real reason so few succeed in trading is because the traits required for success are almost exclusively psychological.

Gary Smith

Money Management

2007-08-31T01:03:00.000+08:00

Traders and investors spend all their time in search of the ultimate trading method. They have no clue that the road to stock market riches ultimately lies in sound money management.

David W. Aloyan

Know Your Risk / Reward

2007-08-31T01:01:00.000+08:00

The dumbest risk is taking a big one for the prospect of a little reward.

Ron Vara

Follow Your Rules

2007-08-31T00:46:00.000+08:00

As a trader it is more important to know that you will always follow your rules than it is to make money, because whatever money you make, you will inevitably lose back to the markets if you can't follow your rules.

Mark Douglas

Frequency vs. Magnitude

2007-08-30T23:58:00.000+08:00

The irrelevance of winning percentage is nicely summed up by another legend named George (Soros):

It doesn't matter how often you are right or wrong - it only matters how much you make when you are right, versus how much you lose when you are wrong.

Source: Turtle Trader

Trading Plan

2007-08-30T23:54:00.000+08:00

Plan your trade and trade your plan.

A Wall Street axiom

The Biggest Risk

2007-08-29T02:55:00.000+08:00

The biggest risk is not taking one.

AIG Insurance

Disciplined Trader

2007-08-29T02:47:00.000+08:00

The best trading system in the hands of an undisciplined trader is a losing system.

Jake Bernstein

Source: Options Trading Beginner