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5 Quotes for Traders

  
  Education
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  • Poor trading practice, poor execution, poor risk management and poor trade management, is responsible for much emotional distress. Trading affects our psychology as much as psychology affects our trading.
  • Identify your greatest fears and face them as directly as possible, so that you find out they are not as powerful as they seemed.”five principles
  • We are all afraid of things and this is a good solution to over coming our fears, because our fears are never as bad as they seem. We make them out to be horrible, but when we finally face our fears we discover that they aren’t so bad.
  • Getting rid of our fears one by one, will make us a stronger people and will allow us to strengthen others.
  • Thinking positively or negatively about performance outcomes will interfere with process of performing. When you focus on the doing, the outcomes take care of themselves.

10 Trading Lessons

  
  Education
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  1. Trading affects psychology as much as psychology affects trading.
  2. Emotional disruption is present even among the most successful traders.
  3. Winning disrupts the trader’s emotions as much as losing.
  4. Size kills.
  5. Training is the path to expertise.
  6. Successful traders possess rich mental maps.
  7. Markets change.
  8. Even the best traders have periods of drawdown.
  9. The market you’re in counts as much toward performance as your trading method.
  10. Execution and trade management count.

The 10 Trading Quotes that Will Change Your Trading

  
  Education
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Surprisingly rich traders are quick to realize when they are wrong and even sometimes reverse their position. The ability to quickly admit that you are wrong in a trade and get out is very powerful and limits your losses.

“Good investing is a peculiar balance between the conviction to follow your ideas and the flexibility to recognize when you have made a mistake.“ –Michael Steinhardt

Do not stay bullish or bearish go with the current flow of the market. Be on the team that is making the money.

“There is only one side of the market and it is not the bull side or the bear side, but the right side.” –Jesse Livermore

Putting it all together, it is more than just numbers. Successful traders trade in three dimensions.

“Successful trading depends on the 3M`s – Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well as firm rules for pulling the trigger – deciding when to buy and sell. Money refers to how you manage your trading capital.” – Alexander Elder

The money is in the primary market trend, not jumping in and out. (more…)

Quotes on Psychology

  
  Education
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The most important single factor in shaping security markets is public psychology. – Gerald Loeb

Wall Street never changes. The pockets change, the suckers change, the stocks change, but Wall Street never changes because human nature never changes. – Jesse Livermore

There is nothing more important than your emotional balance. – Jesse Livermore

There are styles in securities as there are in clothes. A security may be undervalued, but if it is also out of style it is of little interest to the speculator. He is, therefore, compelled to study the psychology of the stock market as well as the elements of real value. – Phil Carret

When events have thinking participants, the subject matter is no longer confined to facts but also includes the participants’ perceptions.  The chain of causation does not lead directly from fact to fact but from fact to perception and from perception to fact. – George Soros

How independent minded are you?

  
  Education
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Winning traders go their own way. They don’t follow the crowd. They are independent minded. How independent minded are you? Here’s a short 10-item quiz to help you determine your tendency to think independently.

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  1. Do you feel uneasy when you think that others don’t like you?
  2. Do you care what others think?
  3. While growing up, did you do what was expected of you?
  4. When making important decisions, do you seek out the opinions of others? (more…)
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