Naved Abdali Quotes

“Somehow, we believe that we have a better chance of winning a game of probabilities, totally disregarding that everybody who is playing the game has the same possibility of winning.”

Investing Trading Randomness Investment Psychology Trading Psychology Probabilities Trading Bias

Author:Naved Abdali

“Investing without a clear understanding of associated risk is like a child is playing with fire. Risk assets are called risk assets for a reason.”

Risk Investing Trading Markets Investment Psychology Financial Risk Risk Assets

Author:Naved Abdali

“The outcome of an investment does not make it right or wrong.”

Investing Trading Invest Investment Psychology Trading Psychology Trading Loss

Author:Naved Abdali

“Being realistic is not about being ordinary or being below average. It is about being honest with investment potentials.”

Investing Invest Investment Psychology

Author:Naved Abdali

“Once you have a plan, always invest within the boundaries and parameters of your plan. Never bend your rules to accommodate your guts.”

Guts Investment Psychology Trading Psychology Stocks Investment Plan Trading Plan Investment Rules Trading Rules

Author:Naved Abdali

“Never bend your rules to accommodate your guts.”

Guts Investment Psychology Trading Psychology Stocks Investment Plan Trading Plan Investment Rules Trading Rules

Author:Naved Abdali

“You must know as a rule that no investment is a once-in-a lifetime opportunity.”

Opportunity Investment Investing Investment Psychology In Vest

Author:Naved Abdali

“Investment is all about building wealth with a reasonable rate-of-return. Play this game for a long haul.”

Investing Long Term Investment Psychology Index Funds Compounding

Author:Naved Abdali

“To be a successful investor, you don't need to take excessive risks and be involved in all sorts of financial instruments. You need to understand your risk appetite and understand a few asset classes well. Stay within your boundaries, and your wealth will grow at a decent pace.”

Investment Investing Risk Management Invest Investment Psychology Portfolio Management Wealth Management

Author:Naved Abdali

“Putting money in a savings account is not going to make anybody rich. It is making the depositors poor every day if you count the inflation.”

Investment Investing Inflation Investment Psychology Investing Quotes Wealth Management Saving Accounts

Author:Naved Abdali

“Trading is not only a zero-sum game but an aggregate negative after deducting the trading cost and research expenses. Somebody’s gain is somebody’s loss, so the professional traders win the game because they have significant advantages over retail traders.”

Trading Invest Investment Psychology Trading Psychology Trader Money Managers Negative Sum Zero Sum

Author:Naved Abdali

“Short-term price fluctuation is not the real risk. It is an opportunity.”

Risk Investing Trading Price Investment Psychology Trading Psychology Wealth Accumulation Wealth Management

Author:Naved Abdali

“Liquidity collapse is not the sign of the market bottom. It is instead a sign that the bottom is not far.”

Investing Markets Liquidity Market Crash Market Cycles

Author:Naved Abdali

“A liquidity crisis is ended by government actions and by government actions only. When you see that governments are providing liquidity support or have started talking about it, it is the time to start buying.”

Investing Liquidity Market Crash Intelligent Investing

Author:Naved Abdali

“Leverage is a two-edged sword. The edge that can cut you, cuts deeper.”

Investing Investments Financial Risk Leverage Leveraging Trading Strategies Leverage Risk

Author:Naved Abdali

“Cash in your bank account is as safe as the creditworthiness of your banker. No more, no less.”

Cash Banks Financial Risk Credit Risk Bank Deposits

Author:Naved Abdali

“If you have a leveraged position, make sure nobody can take it away.”

Trading Financial Risk Leverage Leveraging Trading Strategies

Author:Naved Abdali

“People like to risk pennies to win dollars.”

Risk Gambling Trading Trading Psychology Financial Risk Trading Mindset

Author:Naved Abdali

“No investor can have a successful career without a sufficient understanding of fear and keeping it in check.”

Fear Risk Investing Financial Risk Investor

Author:Naved Abdali

“An investment business has certain risks, and your job as an investor is not to eliminate all risks but to manage and minimize them.”

Risk Investment Investing Trading Risk Management Invest Financial Risk Investment Risk

Author:Naved Abdali

“Don’t be fearful of risks. Understand them, and manage and minimize them to an acceptable level.”

Risk Risk Management Invest Financial Risk Investment Risks

Author:Naved Abdali

“No investment is without risks, and no opportunity is guaranteed. Nothing is certain. And if somebody claims it, stay away from that person.”

Opportunity Business Investment Risks Financial Risk Investment Risks

Author:Naved Abdali

“Leveraging is not evil but must be used with extreme caution and care. You must understand that over-leveraging is the prime reason for all market blowups.”

Risk Investment Investing Markets Portfolio Management Financial Risk Leverage Wealth Management Leveraging

Author:Naved Abdali

“it is not a calculated risk if you haven’t calculated it.”

Risk Assets Risk Management Market Stocks Financial Risk Portfolio

Author:Naved Abdali

“The perceived risk and actual risk are two different things.”

Risk Trading Markets Invest Stocks Financial Risk Shares

Author:Naved Abdali

“Cash is a debt instrument issued by a sovereign government, and all debt instruments are subject to the creditworthiness of their issuers, so is cash.”

Credit Financial Risk Wealth Management Portfolio Saving Accounts

Author:Naved Abdali

“Your investment in a bank account is as secure as your bank is. If your bank goes bankrupt, so does your investment.”

Investment Investing Banks Portfolio Management Financial Risk Wealth Management Credit Risk

Author:Naved Abdali

“Human behavior and information bias play a huge role in transaction prices. It creates short-term opportunities that can be exploited.”

Investing Trading Price Behavioral Finance Cognitive Biases Information Bias

Author:Naved Abdali

“The advantage of the information-bias in favor of professional money-managers and large investors is almost irrelevant for a long-term investor.”

Investment Investing Markets Stocks Cognitive Biases Information Bias Money Manager Information Behavior

Author:Naved Abdali

“People tend to weigh their most recent experiences more than the affairs of the past.”

Human Behavior Trading Psychology Behavioral Finance Cognitive Biases

Author:Naved Abdali

“If you are wearing yellow goggles, every blue thing will appear green to you. It is your perception, and it is your reality.”

Perception Investing Trading Human Behaviour Behavioral Finance Cognitive Biases Information Bias

Author:Naved Abdali

“Identical information can lead to opposite conclusions based on relative perceptions of its receivers.”

Perception Investing Trading Trading Psychology Human Behaviour Behavioral Finance Cognitive Biases Information Bias

Author:Naved Abdali

“Humans are not machines. They analyze information through the lenses of their experience, knowledge, and cognitive biases. All of it makes their perception, their unique viewpoint.”

Perception Investing Trading Trading Psychology Human Behaviour Behavioral Finance Cognitive Biases Information Bias

Author:Naved Abdali

“The discounted cash flow model of valuation is the most helpful tool for separating intrinsic and extrinsic values.”

Valuation Intrinsic Value Fair Value Extrinsic Value Dcf

Author:Naved Abdali

“If you have a farm and you have a bad year, nobody quotes your farm 50% below its actual intrinsic value. But in stocks, this does happen and happens very often.”

Markets Stock Market Valuation Intrinsic Value Stocks Market Crash Market Downturn

Author:Naved Abdali

“An investment made with prudence and caution and keeping all of the rules of self-discipline and risk management is a better investment. It’s better, even if it has ended with a loss.”

Investing Risk Management Risk Analysis Intelligent Investing Investing Discipline

Author:Naved Abdali

“The success of an investment is all about its execution and is not about its outcome.”

Investing Trading Risk Management Trading Psychology Investment Loss

Author:Naved Abdali

“Have a plan. In writing.”

Investing Trading Trading Psychology Investment Plan Trading Plan

Author:Naved Abdali

“Recessions are there to take your investment game to the next level. A recession should help you reach your targets sooner.”

Investment Investing Trading Stock Market Trading Psychology Stocks Recession Bear Market

Author:Naved Abdali

“A trader needs to be highly skilled and extremely lucky to beat the market consistently. If a trader is highly skilled but not lucky enough or extremely lucky but modestly skilled, he will beat the market occasionally but not consistently. Traders that are modestly skilled and modestly lucky will briefly beat the market but will be behind the market most of the time. Everybody else will lose money on a long-term basis, that is, 90% of the traders.”

Luck Investing Trading Traders Markets Trading Psychology Probabilities Investor

Author:Naved Abdali

“It is a common misconception that if you diversify, you don’t need to learn anything. Just buy a bunch of stocks, and you will be good. Nothing can be further from the truth.”

Trading Invest Market Diversification Portfolio Management Stock Shares

Author:Naved Abdali

“No amount of diversification can replace investment research. If you want to invest, you have to learn.”

Investment Investing Trading Diversification Stocks Portfolio Management Shares

Author:Naved Abdali

“Proper diversification can be achieved with a handful of assets. On the other hand, a poorly selected portfolio with hundreds of stocks and bonds can be inadequate for diversification purposes.”

Risk Investment Investing Diversification Portfolio Management Stock Shares

Author:Naved Abdali

“Every all-time high of the stock market proves that the market has eventually recovered from all downturns, 100% of the time. This strategy is the only one that worked every time without a single failure for centuries.”

Strategy Investment Markets Portfolio Management Stock Shares

Author:Naved Abdali

“The stock market, as a whole, has and will recover from every downturn.”

Markets Invest Stock Market Portfolio Management Stock Shares

Author:Naved Abdali

“There is an excellent characteristic of stock investment that it can only go to zero.”

Risk Stocks Portfolio Management Shares Wealth Management Financial Risks

Author:Naved Abdali

“I know people who repeatedly jump from one guru to the next in search of the Holy Grail of trading. Of course, it doesn’t exist, but you need to know this fact to stop looking for it.”

Investing Trading Invest Trading Psychology Holy Grail Portfolio Management Trader

Author:Naved Abdali

“The concept that must be learned is that the market can and does fall substantially from its top periodically. Date, scale, and reason can and will be different each time.”

Investing Trading Markets Stock Market Portfolio Management

Author:Naved Abdali

“When you deposit your money with a bank, you are giving your money to the bank on loan, and your money is only as secure as your bank is.”

Investing Portfolio Management Wealth Management Saving Accounts

Author:Naved Abdali

“There is no optimal ratio for equity and debt distribution of a portfolio. Different times require different splits.”

Investing Trading Portfolio Management Wealth Management Equity Investments

Author:Naved Abdali

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