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Great One Liner Quotes From -Market Wizards

  
Analysis, Education


I find there are a number of useful quotes.
“Scaling out of a position ensures at least partial profits if move continues while mitigating profit surrender if mkt reverses”
“You don’t have to get into or out of a position all at once.”
“Traders who are successful over the long run adapt” [O’Shea]
“Traders who fail may have great rules that work, but then stop working.” [O’Shea]
“What we call intuition is the objective synthesis of information based on past experience, unhindered by emotional distortions”
“The trick is to differentiate between what you want to happen and what you know will happen.”
“Whenever you try to get all your losses back at once, you are most often doomed to fail.” [Schwartz]
“Impulsive trades can be dangerous. Trades cited as their most painful by the Market Wizards were usually impulsive ones”
“The market will seldom reward the carelessness of trades born of desperation.”
“The markets are an expensive place to look for excitement.”
“I don’t trade for excitement; I trade to win.” [Hite]
“Hollywood image of trading as adrenaline-filled and high-risk makes for good visuals but has nothing to do with successful trading”
“If I get a rush, it means that something has gone horribly wrong.” [Alex Honnold] (more…)

Market Wisdom from Bernard Baruch

  
  Education
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You don’t read a lot about Bernard Baruchanymore, but his teachings about the market are useful today as they always have been. There are several good books about him including his own“Baruch: My Own Story” which I recommend highly especially for those of you looking for a book to take with you on your summer vacations.

Although I’ve provided several quotes from Bernard Baruch through the years, here are some notes that I’ve taken from reading about him and his market wisdom. Enjoy!

    • Baruch started out as most traders do – i.e. losing lots of money because he lacked the knowledge, experience, & discipline. “You have to lose money in order to better yourself.”
      • Real success in the market takes time and money. Unfortunately “most people view the market as the place where the miracle of great and quick riches can be performed with little effort.”
        • Overtrading and holding too many positions in his early years caused Baruch to go broke many times before he developed the discipline to succeed.
          • A successful speculation is “a man who observes the future and acts before it occurs.” Acting swiftly in the market is important.
            • After losing money from the recommendation of others, Baruch focused himself on the facts. “One must search through a maze of complex and contradictory details to get to the significant facts…..Then he must be able to operate coldly, clearly, and skillfully on the basis of those facts.” The challenge for the successful speculator is “how to disentangle the cold hard facts from the rather warm feelings of the people dealing with the facts.” Moreover, “if you get all the facts, your judgment can be right; if you don’t get all the facts, it can’t be right.” (more…)

            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…)

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