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"Quotes" to trade by!

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barney

Joined
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Hi guys..............At first glance this may seem a bit frivolous, but I actually firmly believe that "quotations" can be a "short cut to enlightenment"............So I am suggesting that everyone submit one of their "favourite" quotations that helps them "trade successfully"...............I reckon there are "Pearls of Wisdom" to be found in "very few words"............so I'll start it off with one I read.......I think it was by "JOHN PIPER" (but I could be wrong)

"TRADE WHAT YOU SEE, NOT WHAT YOU FEEL!"

(and from what I've learned from tech, I am sure he would agree with this)

Cheers, Barney.
 

Hi Barney,

Some quotes could be good.

I like your enthusiasm. The trouble is the interpretation of said quotes. They could be disatorous if not thought about and validated by actual hard work; researching the necessary areas. Basically I don`t like the quick approach to anything - flippant comes to mind (not you) but I`m sure you understand.

Read it up!
Snake
 
Here are some snippets from the Marty Schwarz interview in Market Wizards (the guy who averaged 25% per month for ten years). I used to refer to them regularly.


Why do most traders lose money?

Because they would rather lose money than admit they’re wrong. What is the ultimate rationalization of a trader in a losing position? “I’ll get out when I’m even.” Why is getting out even so important? Because it protects the ego. I became a winning trader when I was able to say, “To hell with my ego, making money is more important



No, I always take my losses quickly. That is probably the key to my success. You can always put the trade back on, but if you go flat, you see things differently.

Greater clarity?

Much greater clarity because the pressure you feel when you are in a position that is not working puts you in a catatonic state.



Whenever you get hit, you are very upset emotionally. Most traders try to make it back immediately; they try to play bigger. Whenever you try to get all your losses back at once, you are most often doomed to fail... If you can physically remove yourself from the premises… you can see things in a whole different perspective.

After a devastating loss, I always play very small and try to get black ink, black ink. It’s not how much money I make, but just getting my rhythm and confidence back. I shrink my size totally””to a fifth or a tenth of the position that I trade normally. And it works…
 
swingstar said:
What is the ultimate rationalization of a trader in a losing position? “I’ll get out when I’m even.” Why is getting out even so important? Because it protects the ego.
Click to expand...

That is so ME! Thanks for that quote, it's just given me a little more clarity of thought.


One that I read this week in a book 'The Winning Habits of Warren Buffett and George Soros', is:-

'Diversification is a protection against ignorance. It makes very little sense for those that know what they're doing.' - Warren Buffett

Others out of the same book are:-

'Quickly identify mistakes and take action.' - Charlie Munger

'Where I do think I excel is in recognizing my mistakes... that is the secret of my success.' - George Soros

'He who would be rich in a day will be hanged in a year.' - Leonardo de Vinci

'I know where I'm getting out before I get in.' - Bruce Kovner

'The trick is, when there's nothing to do, do nothing.' - Warren Buffett

'What was Soros's secret....? Infinite patience to start with.' - Robert Slater

'If you don't understand it, don't do it.' - Warren Buffett

'We know what we don't know.' - Larry Hite

'Virtually every successful trader I know ultimately ended up with a trading style suited to his personality.' - Randy McKay

'The secret is for a trader to develop a system with which they are compatible.' - Ed Seykota

The book is one of the best I've read on investing. It applys to all trading and investing styles and it's worth buying just for the quotes. There are a heap more too.

NOTE: I do not have any financial or other interest in the book.
 
Favorite Quote though comes from horse racing

" Winners keep on Winning ---- Losers keep on Losing "
Refers to a lot more than the thoughbreed in question though

Cheers
 
"Do not buy a share because it has gone up, and do not sell a share because it has gone down"

Ben Graham
 
Realist said:
"Do not buy a share because it has gone up, and do not sell a share because it has gone down"

Ben Graham
Click to expand...

Would you say that long term holders of CBA & TLS would agree ?


Cheers
 
coyotte said:
Favorite Quote though comes from horse racing

" Winners keep on Winning ---- Losers keep on Losing "
Refers to a lot more than the thoughbreed in question though

Cheers
Click to expand...

Coyotte.
Same saying Subtle change BIG difference.

Winners KEEP winners
Losers KEEP losers

Relate that to holding positions.

Love this.

"A pessimist is an optimist with EXPERIENCE."
 
coyotte said:
Would you say that long term holders of CBA & TLS would agree ?

Cheers
Click to expand...

I hold CBA!! and love it!!

TLS is a dog, people may consider selling TLS because it is close to a monopoly already in a smallish market and has nowhere to grow and alot of room to lose to other providers and IP phones etc., it has goverment regulation issues, increasded competition, has had falling profits, falling dividend prices, falling amount of cash assets, it is a fairly disliked brand, has probably too many staff, is run inefficiently like an old government department, and actually has a bit of debt.

I would sell TLS because of the company, not the falling share price!

Although I know nothing about shares, or women either for that matter, so no-one should ever take my advice.
 
tech/a said:
Winners KEEP winners
Losers KEEP losers
Click to expand...

Keeping and buying are two different things. I have no argument that one should keep winners, I would question whether someone should sell a loser though.

Today's winners are often yesterday's losers.

Had I bought winners in May like Woodside I'd be suffering.

Show me a good company with a falling share price and I get interested...

I'm starting to get interested in WPL and STO now... probably more to fall first though.
 
Am finding this Forum an enlighteng experince !

Normally hang around Hotcopper & Incredible Charts Forums which are both populated predomitlly by T/A traders.

This forum though seems to be more based on B-H-P investors , swinging around F/A and a bit of basic T/A .

Good to see the other view , though one may totaly disagree , but that is what makes the market a "market"


God forbid we all agree , then there would be no market

Cheers
 
Realist said:
Keeping and buying are two different things. I have no argument that one should keep winners, I would question whether someone should sell a loser though.
Click to expand...

Of course you would fear of loss is a dominating factor in your decision making.

Today's winners are often yesterday's losers.
Click to expand...

So they would no longer be a loser then!

Had I bought winners in May like Woodside I'd be suffering.
Click to expand...

Exactly you would have held a loser-??? Would it be easier for you if I typed S-L-O-W-E-R??

Show me a good company with a falling share price and I get interested...
Click to expand...

Of course you and many others do thats why 90% lose in this game and fail to create sufficent wealth to be self supporting in retirement.

I'm starting to get interested in WPL and STO now... probably more to fall first though.
Click to expand...

Always a better opportunity.---You'll miss most if not all opportunities due to your fear.
 
"A successful trader goes the opposite way to the mob"
 
tech/a, can you not appreciate the difference between yourself and realist? for him the share price represents only an opportunity to buy, beyond that it is virtually irrelevant. history proves the "in the long term the stock market is a weighing machine" theory.

both methods are proven to work if followed correctly so why are you always putting him down? different strokes for different folks...
 
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