A speculator strives to be professional, honorable, intellectual, serious, analytical, calm, selective and focused.
Whereas the gambler is corrupt, distracted, moody, impulsive, excitable, desperate and superstitious.
It’s not the market that defines whether a participant is a Gambler or a Speculator, it’s his behavior.
Archives of “participant” tag
rssThe Market Is Never Wrong In What It Does
“The market is never wrong in what it does; it just is. Therefore, you as an individual trader interacting with the market—first as an observer to perceive opportunity, then as a participant executing a trade, contributing to the overall market behavior—have to confront an environment where only you can be wrong, and it’s never the other way around. As a trader, you have to decide what is more important—being right or making money—because the two are not always compatible or consistent with one another.”
Mark Douglas, in The Disciplined Trader
Peter Lynch Quotes
“You can’t see the future through a rear view mirror.” – Peter Lynch
“The best stock to buy may be the one you already own.” – Peter Lynch
“You should not buy a stock because it’s cheap but because you know a lot about it.” – Peter Lynch
“An investment is simply a gamble in which you’ve managed to tilt the odds in your favor.” – Peter Lynch (more…)
Fear of Loss — How the unconscious mind detects danger before the conscious mind does
A card game — The subjects in the study played a gambling game with decks of cards. Each person received $2,000 of pretend money. They were told that the goal was to lose as little of the $2,000 as possible, and to try to make as much over the $2000 as possible. There were four decks of cards on the table. The participant turned over a card from any of the four decks, one card at a time. They continued turning over a card from the deck of their choice until the experimenter told them to stop. They didn’t know when the game would end. The participant was told that every time they turned over a card, they earned money. They were also told that sometimes when they turned over a card, they earned money but also lost money (by paying it to the experimenter). (more…)
French Doctor Accused Of Assisting Hedge Fund Manager Insider Trade
The Securities and Exchange Commission accused a French medical doctor with illegally tipping off a hedge-fund manager about the results of a clinical trial conducted by Human Genome Sciences Inc., prompting the manager to dump roughly six million shares of the drug maker. The SEC alleged in the civil complaint Tuesday that Dr. Yves M. Benhamou gave the hedge-fund manager nonpublic information about negative developments in the trial of the drug Albuferon, used to treat Hepatitis C, including that one trial participant had died…Over a period of weeks prior to the announcement, the hedge-fund manager ordered the sale of all Human Genome Sciences stock held by six hedge funds he co-managed, a stake of roughly six million shares, the SEC said. [WSJ]
Trading Quotes -The Disciplined Trader ,Mark Douglas
The market is never wrong in what it does; it just is. Therefore, you as an individual trader interacting with the market—first as an observer to perceive opportunity, then as a participant executing a trade, contributing to the overall market behavior—have to confront an environment where only you can be wrong, and it’s never the other way around. As a trader, you have to decide what is more important—being right or making money—because the two are not always compatible or consistent with one another…—-The Disciplined Trader,Mark Douglas
If, in fact, you can’t control or manipulate the markets and the markets have absolutely no power or control over you, then the responsibility for what you perceive and for your resulting behavior resides only in you. The one thing you can control is yourself. As a trader, you have the power either to give yourself money or to give your money to other traders.—-The Disciplined Trader,Mark Douglas