Trader's quote of the day

  • “I learned how to play poker at a very young age. My father taught me the concept of playing the percentage hands. You don’t just play every hand and stay through every card, because if you do, you will have a much higher probability of losing. You should play the good hands, and drop out of the poor hands, forfeiting the ante. When more of the cards are on the table and you have a very strong hand — in other words, when you feel the percentages are skewed in your favor — you raise and play that hand to the hilt. If you apply the same principles of poker strategy to trading, it increases your odds of winning significantly. I have always tried to keep the concept of patience in mind by waiting for the right trade, just like you wait for the percentage hand in poker. If a trade doesn't look right, you get out and take a small loss; it’s precisely equivalent to forfeiting the ante by dropping out of a poor hand in poker. On the other hand, when the percentages seem to be strongly in your favor, you should be aggressive and really try to leverage the trade similar to the way you raise on the good hands in poker.”
    - Gary Bielfeldt
  • “Trading, like poker, can be described as a zero-sum game. If you are winning then someone else must be losing. This battlefield aspect to the markets is something that the novice trader disregards at his/her own peril, since humans sit behind those trading screens and you can bet that they will do everything in their power to take your money, even if that means bending the rules in their favor.”
    - Agustin Silvani
  • “Systems should be kept as simple as possible. Overdoing things doesn't make a system better; on the contrary, it can take away from a good system. Trying to make a system too complicated with too many indicators and variables is a common mistake with some traders: some of the best systems are the simplest. “
    - Marcel Link
  • "Price is what you pay, value is what you get"
    - Warren Buffett
  • “Always listen to the experts. They’ll tell you what can’t be done and why. Then do it.”
    - Robert Heinlein
  • "My basic advise is don't lose money"
    - Jim Rogers.
  • “By failing to prepare you are preparing to fail” – Benjamin Franklin
  • “One common adage on this subject that is completely wrong-headed is: you can’t go broke taking profits. That’s precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits. The problem in a nutshell is that human nature does not operate to maximize gain but rather to maximize the chance of gain. The desire to maximize the number of winning trades (or minimize the number of losing trades) works against the trader. The success rate of trades is the least important performance statistic and may even be inversely related to performance.”
    – William Eckhardt
  • This is one is good smile Never thought about small profits this way.
  • “Managing risks is in many ways the foundation of the entire process. Managing risk comes down to two things. First is how you are going to place your stops. That goes back to cutting your losses short. Consider trading as a business venture. Managing risk means recognizing what the costs of trading are. Make a comprehensive plan. Winning traders always treat their trading like a game, but they also look at the whole thing as a money-making business.”
    - Glen Ring
  • “The successful trader [...] has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss might develop into a much bigger loss, and hope that his profit may become a bigger profit.”
    - Jesse Livermore
  • Chasing losses is like trying to catch an honest politician
  • You have to learn the rules of the game. And then you have to play better than anyone else.
    - Albert Einstein
  • “The psychological factor for investing has 5 areas. These include a well-rounded personal life, a positive attitude, the motivation to make money, lack of conflict – such as psychological hang ups about success, and responsibility for results.”
    -Dr. Van K. Tharp
  • “You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody. This is the life of a successful trader. Many aspire to this but few succeed. An amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the money – and loses. He reaches again – and loses more. Traders loose because the game is hard, or out of ignorance, or lack of discipline or because of both.”
    - Alexander Elder
  • “The man who asks a question is a fool for a minute, the man who does not ask is a fool for life.” ― Confucius
  • “Focus on being profitable for the week – Individual trades may go against you and individual trading days can offer little opportunity. As a senior trader once explained to me, for the active trader, however, there are enough fresh opportunities in a week to make it reasonable to set a goal of being profitable for the week. You won’t reach your goal every single week, but the mere act of setting the goal keeps you focused. For example, you don’t want to lose so much money in a single day that you can’t make it back during the other days of the week. You also don’t want to lose so much money on a single trade that you can’t come back during the remainder of the day. When you really push yourself to be profitable every week, you don’t let individual days get away from you. And when you don’t let individual days get away from you, you start managing each trade carefully to ensure that your largest loss won’t exceed your largest gain. Time and again I've seen a consistent sign of progress among developing traders: they stop digging themselves into holes.”
    - Brett Steenbarger
  • “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you. If you argue with the market, you will lose. It is incredible how rich you can get by not being perfect. 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. I have two basic rules about winning in trading as well as in life:

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

    Frankly, I don’t see markets. I see risks, rewards, and money.”

    - Larry Hite
  • "Markets are never wrong"
    - Anonymous
  • last edited Dec 13 2012 9:45 am
    “Poker reveals to the frank observer something else of import—it will teach him about his own nature. Many bad players do not improve because they cannot bear self-knowledge.”
    - David Mamet

    ....Very much like trading

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