“Make sure you have an edge. Know what your edge is. And have rigid risk control rules.” Quote by Monroe Trout
“Soros is the best loss taker I've ever seen. He doesn't care whether he wins or loses on a trade. If a trade doesn't work, he's confident enough about his ability to win on other trades. There are a lot of shoes on the shelf; wear only the ones that fit. If you're extremely confident, taking a loss doesn't bother you.” IfsEnoughCareWinningLosesLossAbilityFitTradeShoesBotherShelvesWin Or LoseHe Doesn't Care Author:Stanley Druckenmiller
“If there's a large move on significant news, either favorable or unfavorable, the stock will usually continue to move in that direction.” IfsMovingNewsSignificant Author:Richard Driehaus
“The critical ingredient is a maverick mind. Focus on trading vehicles, strategies and time horizons that suit your personality. In a nutshell, it all comes down to: Do your own thing (independence); and do the right thing (discipline).” MindFocusPersonalityDisciplineIndependenceStrategyCriticalSuitsRight ThingIngredientsHorizonVehicleTradingMaverick Author:Gil Blake
“The ability to change one's mind is probably a key characteristic of the successful investor. Dogmatic and rigid personalities rarely, if ever, succeed in the markets. The markets are a dynamic process, and sustained investment success requires the ability to modify and even change strategies as markets evolve.” IfsMindProcessAbilitySuccessfulKeysPersonalitySucceedStrategyInvestmentEvolveCharacteristicsInvestorsDogmaticAbility To ChangeInvestment Success Author:Jack D. Schwager
“Once a price move exceeds its median historical age, any method you use to analyze the market, whether it be fundamental or technical, is likely to be far more accurate. For example, if a chartist interprets a particular pattern as a top formation, but the market is only up 10% from the last low, the odds are high that the projection will be incorrect. However, if the market is up 25% to 30%, then the same type of formation should be given a great deal more weight.” IfsShouldUseAgeLastsMovingGivenDealsExampleParticularTypeLowsWeightMethodFundamentalsHistoricalPatternsAccurateOddsProjectionExceedFormationMedian Author:Victor Sperandeo
“The key to investment success is emotional discipline. Making money has nothing to do with intelligence. To be a successful investor, you have to be able to admit mistakes. I trained a guy to trade who had a 188 IQ. He was on "Jeopardy" once and answered every question correctly. That same person never made a dime in trading during 5 years!” YearsPersonsMadeAbleGuyMistakeSuccessfulEmotionalKeysDisciplineTradeInvestmentMaking MoneyInvestorsTradingDimesJeopardyInvestment Success Author:Victor Sperandeo
“Most people lose money because of lack of emotional discipline -the ability to keep their emotions removed from investment decisions. Dieting provides an apt analogy. Most people have the necessary knowledge to lose weight-that is they know that in order to lose weight you have to exercise and cut your intake of fats. However, despite this widespread knowledge, the vast majority of people who attempt to lose weight are unsuccessful. Why? Because they lack the emotional discipline.” PeopleKnowsOrderLosesAbilityDecisionEmotionCuttingEmotionalDisciplineExerciseWeightMajorityInvestmentFatsDespiteAnalogiesDietingLose WeightUnsuccessful Author:Victor Sperandeo
“In my opinion, the greatest misconception about the market is the idea that if you buy and hold stocks for long periods of time, you'll always make money. Let me give you some specific examples. Anyone who bought the stock market at any time between the 1896 low and the 1932 low would have lost money. In other words, there's a 36 year period in which a buy-and-hold strategy would have lost money. As a more modern example, anyone who bought the market at any time between the 1962 low and the 1974 low would have lost money.” IfsGivingYearsLongIdeasLostOpinionModernExamplePeriodsLowsLet MeStrategyMaking MoneyMisconceptionLong Periods Of TimeLost Money Author:Victor Sperandeo
“I believe my most important skill is an ability to perceive patterns in the market. I think this aptitude for pattern recognition is probably related to my heavy involvement with music.” ThinkingBelieveImportantI BelieveAbilitySkillsPatternsHeavyRecognitionPerceiveRelatedInvolvementAptitude Author:Linda Bradford Raschke
“You can't listen to the news. You have to go with the facts. You need to use a logical approach and have the discipline to apply it. You must be able to control your emotions.” NeedsFactsUseAbleEmotionDisciplineApproachNewsLogical Author:Blair Hull