Archives of “January 8, 2019” day

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Trading Wisdom by Larry Hite & Marty Schwartz

  
  Education
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Larry Hite

While the speculator doesn’t have the product knowledge or speed, he does have the advantage of not having to play. The speculator can choose to only bet when the odds are in his favor. That is an important positional advantage.

In the above quote, Larry is referring to the fact that smaller retail traders have the advantage of being able to sit out an wait patiently for the best opportunities. Bigger institutional traders have to trade more and whilst they might have a speed advantage, the retail trader has to use his advantage of being able to trade like a sniper to its fullest.

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

The above quote stresses the importance of seeing each trade as a risk reward ratio, rather than just a potential profit opportunity. Pro traders calculate their risk first and then their reward, if the risk reward ratio of a trade doesn’t make sense then they don’t trade.

Marty Schwartz

 I always laugh at people who say, “I’ve never met a rich technician.” I love that! It’s such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician. (more…)

EBB & FLOW

  
  Education

Trading is extremely “easy ” when you get the direction right !It is a flow and rhythm you can feel when you catch a move.

When you are going the wrong way ,(opposite direction the market is moving ,and it is still traveling to IT’S destination ,as opposed to yours ) it can feel a bit like driving  your car into a cement wall.

When you have the right direction in a trade it is exactly the same feeling as that image of water flowing effortlessly down the moghul run !

Trading Quotes

  
  Education
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“Rich people don’t make big bets. Really rich-and smart-people don’t make big bets. First they are not out to “prove” anything, they are out to make more money, and second, they know that risk control is as important as the other two legs of speculation, selection and timing. That is all this business of … trading gets down to, selection, timing, and risk control.”

“Trading well is not easy, but it is something you can learn if you have the perseverance combined with the humility to be realistic about your own strengths and weaknesses.”

“Most often, traders have four fears. There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table. I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make. Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly? Your fear. Your fears immobilize you. Your fears distort your perception of market information in ways that don’t allow you to utilize what you know.”

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