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0 16

I attribute my success to this — I never gave or took any excuse.

~ Florence Nightingale

 

0 18

Life is not easy for any of us. But what of that? We must have perseverance and above all confidence in ourselves. We must believe that we are gifted for something, and that this thing, at whatever cost, must be attained.

~ Marie Curie

QAN Editor’s Note: This term “at whatever cost” refers to personal sacrifice.

 

0 24

What I fear is complacency. When things always become better, people tend to want more for less work.

~ Lee Kuan Yew

 

0 37

How you trade, what you trade, and the frequency of the trades you make all come down to who you are as a person, not what you know about a specific financial instrument. That’s the gaping hole in the training of traders. If you take away anything from this book, make it these points:

1.  Trading profitably is about mathematical expectation.
2.  Knowing yourself is more important than what you know.

Business school doesn’t address either of these. Who you are, not what you know, determines how well you do.

~ Michael Martin – The Inner Voice of Trading

 

0 49

The speculator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you, you hope that every day will be the last day – and you lose more than you should had you not listened to hope – to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out-too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He 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 may develop into a much bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to gamble in stocks the way the average man does.

~ Jesse Livermore

 

0 100

Gut feel is important. If ignored, it may come out in subtle ways by coloring your logic. It can be dealt with through meditation and reflection to determine what’s behind it. If it persists, then it might be a valuable subconscious analysis of some subtle information. Otherwise, it might be a dangerous sublimation of an inner desire for excitement and not reflect market conditions. Be sensitive to the subtle differences between “intuition” and “into wishing”.

~ Ed Seykota

 

0 117

If trading is your life, it is a torturous kind of excitement. But if you are keeping your life in balance, then it is fun. All the successful traders I’ve seen that lasted in the business sooner or later got to that point. They have a balanced life; they have fun outside of trading. You can’t sustain it if you don’t have some other focus. Eventually, you wind up over trading or getting excessively disturbed about temporary failures.

~ Michael Marcus

 

0 120

Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.

I know one trader who seems to get in near the start of every substantial bull move and works his $10 thousand up to about a quarter of a million in a couple of months. Then he changes his personality and loses it all back again. This process repeats like clockwork. Once I traded with him, but got out when his personality changed. I doubled my money, while he wiped out as usual. I told him what I was doing, and even paid him a management fee. He just couldn’t help himself. I don’t think he can do it any differently. He wouldn’t want to. He gets a lot of excitement, he gets to be a martyr, he gets sympathy from his friends, and he gets to be the center of attention. Also, possibly, he may be more comfortable relating to people if he is on their financial plane. On some level, I think he is really getting what he wants.

I think that if people look deeply enough into their trading patterns, they find that, on balance, including all their goals, they are really getting what they want, even though they may not understand it or want to admit it.

~ Ed Seykota

 

0 184

Most behavior is habitual, and they say that the chains of habit are too light to be felt until they are too heavy to be broken.

And there is no question about it. I see people with these self destructive behavior patterns, at my age or even ten or twenty years younger, and they really are entrapped by them.

~ Warren Buffett

 

0 162

There are just four kinds of bets. There are good bets, bad bets, bets that you win, and bets that you lose. Winning a bad bet can be the most dangerous outcome of all, because a success of that kind can encourage you to take more bad bets in the future, when the odds will be running against you. You can also lose a good bet, no matter how sound the underlying proposition, but if you keep placing good bets, over time, the law of averages will be working for you.

~ Larry Hite