Recently, I just read a book authored by Mark B. Fisher, The Logical Trader. There are some good trading quotes that I like from that book. So, I think it may be good to share them here too.
Here are the trading quotes:
Have A Plan
In trading, as in life, you need a plan. This plan includes not only the micro – a strategy for each and every trade you make – but also the macro – meaning why you trade, how you intend to reach that goal (your means to the desired end), and what you’ll do as an alternative if that doesn’t work out.
Know what you want to accomplish, how you intend to get there, and what you will do if it does – or does not – work out. Have a plan and stick with it. That works in trading, as well as in life.
Most traders average down and wait for the market to turn their way.
Trading my way, I always have defined amount of money that I am willing to lose.
I let the market decide how much money I’m going to make.
Good News/Bad Action
When the news is good but the market just does not rise correspondingly, sell.
In trading, as in life, you need a plan. This plan includes not only the micro – a strategy for each and every trade you make – but also the macro – meaning why you trade, how you intend to reach that goal (your means to the desired end), and what you’ll do as an alternative if that doesn’t work out.
Know what you want to accomplish, how you intend to get there, and what you will do if it does – or does not – work out. Have a plan and stick with it. That works in trading, as well as in life.
I Know Who I Am
Coming to term with who I am as a trading, knowing my limitations, and doing what I do well – and not doing those things that I have no clue about – has brought me continued success.
Too many people want to be who they are not, and professionally – whether in trading or in another field of business – that’s where they run into trouble.
Coming to term with who I am as a trading, knowing my limitations, and doing what I do well – and not doing those things that I have no clue about – has brought me continued success.
Too many people want to be who they are not, and professionally – whether in trading or in another field of business – that’s where they run into trouble.
Discipline and Comfortable With Yourself
You don’t need complicated Einstein formulas to make money in the markets.
You do need to be disciplined and comfortable with yourself.
No matter how good of a trader you think you are, the markets are always going to screw with your head and test your mental fortitude.
Remember, the survivors are also the ones who make up the market’s success stories.
You don’t need complicated Einstein formulas to make money in the markets.
You do need to be disciplined and comfortable with yourself.
No matter how good of a trader you think you are, the markets are always going to screw with your head and test your mental fortitude.
Remember, the survivors are also the ones who make up the market’s success stories.
Time Stop
An important rule of trading is that time is much more important than price.
Successful trading is a matter of seeking out immediate gratification. If the market doesn’t move your way within a short time of putting on a trade, just get out.
Most people trade just with Price Stops and not with Time Stops. They think they have to endure some initial pain. You, however, should not.
An important rule of trading is that time is much more important than price.
Successful trading is a matter of seeking out immediate gratification. If the market doesn’t move your way within a short time of putting on a trade, just get out.
Most people trade just with Price Stops and not with Time Stops. They think they have to endure some initial pain. You, however, should not.
Get Out When You’re Wrong
Successful traders know that discipline is what allows them to enter their trades when the odds are in their favor and, more importantly, to get out when they’re wrong.
Being right is not the problem. What you do when you’re wrong is the crucial issue.
There are a lot of traders who buy then pray while the market goes against them, because they think that it will eventually go their way.Successful traders know that discipline is what allows them to enter their trades when the odds are in their favor and, more importantly, to get out when they’re wrong.
Being right is not the problem. What you do when you’re wrong is the crucial issue.
Most traders average down and wait for the market to turn their way.
Trading my way, I always have defined amount of money that I am willing to lose.
I let the market decide how much money I’m going to make.
Good News/Bad Action
When the news is good but the market just does not rise correspondingly, sell.
I Have No Clue
If a market is making a substantial move and traders seem to understand why, this market trend is not going to last very long.
However, if the market is moving in one direction and nobody has no clue as to why, then the trend is going to be prolonged.
When a market goes up or down for no apparent reason, it tends to go a lot further in that direction than people can imagine.
Be The House
The more time you spend at the table, the more bets you are going to place, and the greater the probability that you will eventually walk out of the casino as a loser. The casino would rather not have someone make a single large wager and win or lose, immediately walk away.
What the house wants is for you to keep playing. The passage of time is the casino’s best friend and the player’s worst enemy.
Money Management
If the odds are in your favor of making a profit with your trading system, then keep your trade size consistent, cut your losses short, and know that, over time, you’ll be successful.
Fear and Greed
The two key ingredients that every trader needs to posses in the right combination in order to be successful – namely, fear and greed.
You need to have enough fear in you, meaning a healthy amount of respect for the market that you are participating in.
Allowing yourself that you are always right, especially when the market is clearly dictating that you are dead wrong, is a sure path toward trading disaster.
However, fear is not enough.
A trader must also have a healthy amount of greed.
You must be willing and able to press winning trades and allow these once-in-a-blue-moon occurrences to develop into large scale winners.
Sometimes it takes an iron will and a great deal of patience to be able to max out on these particular trades.
Staying Out Of The Penalty Box
The key to the whole puzzle is discipline, the more you have, the better you’ll trade.
The best traders have incredible amounts of discipline when they have a trading position on. They cut their losses and run. That’s the hardest thing on the world for a lot of other traders.
Maybe you’re bullish on the market, but your indicators say to get out. After you do, the market goes up this one time. Then you question your system. But if you stick with the system, you’ll be a lot better off.
If a market is making a substantial move and traders seem to understand why, this market trend is not going to last very long.
However, if the market is moving in one direction and nobody has no clue as to why, then the trend is going to be prolonged.
When a market goes up or down for no apparent reason, it tends to go a lot further in that direction than people can imagine.
Be The House
The more time you spend at the table, the more bets you are going to place, and the greater the probability that you will eventually walk out of the casino as a loser. The casino would rather not have someone make a single large wager and win or lose, immediately walk away.
What the house wants is for you to keep playing. The passage of time is the casino’s best friend and the player’s worst enemy.
Money Management
If the odds are in your favor of making a profit with your trading system, then keep your trade size consistent, cut your losses short, and know that, over time, you’ll be successful.
Fear and Greed
The two key ingredients that every trader needs to posses in the right combination in order to be successful – namely, fear and greed.
You need to have enough fear in you, meaning a healthy amount of respect for the market that you are participating in.
Allowing yourself that you are always right, especially when the market is clearly dictating that you are dead wrong, is a sure path toward trading disaster.
However, fear is not enough.
A trader must also have a healthy amount of greed.
You must be willing and able to press winning trades and allow these once-in-a-blue-moon occurrences to develop into large scale winners.
Sometimes it takes an iron will and a great deal of patience to be able to max out on these particular trades.
Staying Out Of The Penalty Box
The key to the whole puzzle is discipline, the more you have, the better you’ll trade.
The best traders have incredible amounts of discipline when they have a trading position on. They cut their losses and run. That’s the hardest thing on the world for a lot of other traders.
Maybe you’re bullish on the market, but your indicators say to get out. After you do, the market goes up this one time. Then you question your system. But if you stick with the system, you’ll be a lot better off.