- There are only three kinds of investors – those who think they are geniuses, those who think they are idiots, and those who aren’t sure.
- One of the clearest signals that you are wrong about an investment is having the hunch that you are right about it.
- Investors who focus on price levels earn between five and ten times higher profits than those who pay attention to price changes.
- The only way to be more certain it’s true is to search harder for proof that it is false.
- Business value changes over time, not all the time. Stocks are like weather, altering almost continually and without warning; businesses are like the climate, changing much more gradually and predictably.
- When rewards are near, the brain hates to wait.
- The market isn’t always right, but it’s right more often than it is wrong.
- Often, when we are asked to judge how likely things are, we instead judge how alike they are.
- Most of what seem to be patterns in stock prices are just random variations.
- In a rising market, enough of your bad ideas will pay off so that you’ll never learn that you should have fewer ideas. (more…)
Archives of “greatest challenge” tag
rssWisdom From Jason Zweig
There are only three kinds of investors – those who think they are geniuses, those who think they are idiots, and those who aren’t sure.
- One of the clearest signals that you are wrong about an investment is having the hunch that you are right about it.
- Investors who focus on price levels earn between five and ten times higher profits than those who pay attention to price changes.
- The only way to be more certain it’s true is to search harder for proof that it is false.
- Business value changes over time, not all the time. Stocks are like weather, altering almost continually and without warning; businesses are like the climate, changing much more gradually and predictably.
- When rewards are near, the brain hates to wait.
- The market isn’t always right, but it’s right more often than it is wrong.
- Often, when we are asked to judge how likely things are, we instead judge how alike they are.
- Most of what seem to be patterns in stock prices are just random variations.
- In a rising market, enough of your bad ideas will pay off so that you’ll never learn that you should have fewer ideas.
- The more often people watch an investment heave up and down, the more likely they are to trade in and out over the short term – and the less likely they are to earn a high return over the long term.
- Investing is not you versus “Them”. It’s you versus you.
- The single greatest challenge you face as an investor is handling the truth about yourself.
- Hindsight bias keeps you from feeling like an idiot as you look back – but it can make you act like an idiot as you look forward.
- Ignorance of our own ignorance haunts our financial judgments. (more…)
Trading Quotes for Traders
Human emotion is both the source of opportunity in trading and the greatest challenge. Trade with an edge, manage risk, be consistent, and keep it simple. Good trading is not about being right, it’s about trading right. Trading with an edge is what separates the professionals from amateurs. Edges are found in the places between the battleground between buyers and sellers. Mature understanding of and respect of risk is the hallmark of the best traders. Ruin is the risk you should be concerned with the most. Don’t spent all your time admiring the fancy tools in the magazine. Keep it simple. Simple time-tested methods that are well executed will beat fancy complicated method every time. Trading with poor methods is like learning to juggle while standing in a rowboat during the storm. Sure, it can be done, but it is much easier to juggle when one is standing on a solid ground. Trading is not a sprint; it is boxing. The market will beat you up, screw with your head, and do anything it can to defeat you. But when the bell sounds at the end of the twelfth round, you must be standing in the ring in order to win. The market does not care how you feel. It will not prop up your ego or console you when you are down. |
The Difficulty In Trading Lies Not In The Concepts But In Their Application
Human emotion is both the source of opportunity in trading and the greatest challenge. Master it and you will succeed. Ignore it t your peril. – in Way Of The Turtle |
Trading Quotes
Human emotion is both the source of opportunity in trading and the greatest challenge. Trade with an edge, manage risk, be consistent, and keep it simple. Good trading is not about being right, it’s about trading right. Trading with an edge is what separates the professionals from amateurs. Edges are found in the places between the battleground between buyers and sellers. Mature understanding of and respect of risk is the hallmark of the best traders. Ruin is the risk you should be concerned with the most. Don’t spent all your time admiring the fancy tools in the magazine. Keep it simple. Simple time-tested methods that are well executed will beat fancy complicated method every time. Trading with poor methods is like learning to juggle while standing in a rowboat during the storm. Sure, it can be done, but it is much easier to juggle when one is standing on a solid ground. Trading is not a sprint; it is boxing. The market will beat you up, screw with your head, and do anything it can to defeat you. But when the bell sounds at the end of the twelfth round, you must be standing in the ring in order to win. The market does not care how you feel. It will not prop up your ego or console you when you are down. I always say that you could publish my trading rules in the newspaper and no one will follow them. |