Warren Buffet’s Investment & Life Wisdoms

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

Good Trading Quotes from “Techniques of Tape Reading”

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

Money Management & Positive Expectancy

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

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

Risk Management & No Overtrading

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

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

No 1 Trading Survival Tips: Capital Preservation

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

Three Essential Components Of Trading

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

Warren Buffet’s Rules of Investing

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

Warren Buffet

Take Your Trading As A Serious Intellectual Pursuit

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

The First 3 Money Management Rules

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

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

Mr. Stupid, why risk everything on one trade?

Paul Tudor Jones

Money Management

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