Thought For The Day

[flea]

"When we have conviction - when all the pieces seem to fit - then we have to go for it. We have to commit ourselves, for this act of commitment is as much an essential ingredient of success in trading as risk-control. What we say when we commit ourselves is: 'this position can lose, like any position. We must have a contingency plan for getting out economically. But it's an exceptionally good position and it's not going to lose.' And when all the pieces fit, we should bet our final stake straight off, in my view. That way we bet most when the odds are best, i.e. when the risk is lowest."

John Percival, trader and author: The Way of the Dollar

 

[flea]

"Making money has nothing to do with intelligence. Think of all the bright people that choose careers on Wall Street. If intelligence were the key, there would be a lot more people making money trading . . . To be a successful trader, you have to be able to admit mistakes. People who are very bright don't make very many mistakes. In a sense, they generally are correct. In trading, however, the person who can easily admit to being wrong is the one who walks away a winner."

Victor Sperandeo, as quoted in The New Market Wizards, by Jack Schwager

 

[neil]

Bad Day

I got out of bed and put on a shirt when a button fell off.

When I picked up my briefcase the handle fell off.

Now I'm afraid to go to the bathroom.

 

[flea]

"You have to put it into perspective. I’m fond of thinking of trading in terms of scores of years. If I live long enough, I’ll trade for fifty or sixty years. I figure that, over that time span, I’ll see devastating declines, spectacular advances that I virtually can’t believe, and everything in between. If you have done mental rehearsals to see how you would react in different catastrophic situations, then when such an event occurs, you become curious.” [Tom Basso]

The New Market Wizards, by Jack Schwager, p.288

 

[flea]

"Of course most investors enjoy the process of amassing profits, the satisfaction of adept trading, or simply outwitting the crowd. But it is not just the outcome that is important, it is also the process. The tension that accompanies being in the market is an integral part of the overall experience. For profit without risk, or loss without care drains much of the pleasure out of the investing process."

The Mind of the Markets, by F. J. Chu

 

[flea]

Thought For THe Day

"The key to investment success is knowing when to sell, for as Lao Tsu pointed out, 'Nature's brightest day fades into night.' Since 90 percent of the Street's recommendations are on the buy side, there is little competition for selling advice. Selling is the highest art form of investing. 'Finishing always triumphs over starting out.' According to Lao Tsu. And he added, 'People usually fail when they are on the verge of success, so give as much care to the end as the beginning. Then there will be no failure."

The Tao Jones Averages, by Bennett W. Goodspeed

 

[orionksol]

Flee

Some excellent information here, I appreciate everthing you have posted.

I have been trading for 4 years and I've had my high's and low's. At one point, immediatly preceding the sept 01 bombings I made alot of money in a very short time playing NASD small caps on the BOUNCE.

I consider myself an excellent trader, this skill to a long time to master I attribute it to sticking with it. It seems most people have unreal expectations from the market. I started trading in college with 3 buddies and in the first months we all lost most of our money. They all quit, whats worse is they blamed the market, not themselves and so further spread the negative sentiment towards trading.

I stuck with it and continued to lose money. It was only after over 2 years full time in the market by trial and error and I figured out a trading stratagy that worked and finaly reached the point where I made money on a consistant basis.

So this is the point I would like to make. Go into the market with realistic expectations, expect to lose you shirt in the first few months because you will. The only way you can becomes a succesful daytrader is by doing it all the time and sticking with it!

 

[Splurge]

Been there

Done that

Read the book

Got the tee shirt..............


At the end of the day it comes down to discipline imo. Start breaking your own rules then you are just gambling............

nuff said

 

[flea]

Unlike Warren Buffett or John Templeton, who treat market declines as buying opportunities, the average investor panics and throws reason to the winds. Richard Thaler's research has shown that people value a dollar lost twice as much as a dollar gained. The emotional over-weighting of money lost probably accounts for a lot of the bear market panic. When people begin to lose, all kinds of fantasies are mobilized, for example, "I never should have bought any stock; People like me don't belong in the stock market; I knew this would happen; God is punishing me." These typify the ideas gripping people in a bear market."

The Psychology of Investing, edited by Lifson and Geist, p.66

 

[neil]

Age

Seen on a Tee Shirt worn by a mature gentleman:




"THE OLDER I GET - THE BETTER SHAPE I WAS."




Neil

 

[extreme]

thought for the day ?... it's in my signature......

 

[flea]

Once you spot an opportunity, do not hesitate to execute your trade. Take advantage of weak hands.

Sun Tzu's Art of War for Traders and Investors by Dean Lundell

 

[RogerM]

We've all heard the old philosophical question which asks whether if, "when a tree in the forest falls over when there is no one there, does it make a sound?".

In a similar vein, "if a man lives in a world completely devoid of women, is he still wrong?".

 

[neil]

laterally speaking

Woody: "How would a beer feel, Mr. Peterson?"

Norm: "Pretty nervous if I was in the room."

 

[flea]

"I think great traders certainly have to have a psychological stability about themselves, but not too much stability, because one has to have a certain flair for risk. It is a fine psychological blend you have got to look for in a trader; the ability to take risk, the ability to have some courage, coupled with stability in the psychological make-up. I think the great traders have to have a greater appetite for risk than the normal person or the poorer traders. Then the question is how they manage that risk, the discipline they impose on themselves to manage that risk."

The Mind of a Trader, by Alpesh B. Patel

 

[neil]

OPTIMISM

A man falls off a skyscaper:

As he passes the fifth floor he thinks -:

"So far - so good."

 

[flea]

Trading is a study of the market and oneself. . .The only limitation imposed on a trader is his or her own creativity and ability.

The Elements of Successful Trading by Robert P. Rotella

 

[neil]

No Position is a Position

"Teach us to care and not to care -- teach us to just sit still"

T.S. Elliot

 

[flea]

" The vast majority of people want more money in order to gain power, freedom, or control. But what does that signify? Does it point to the need for self-sufficiency? The frustration of relationships with others? The desire for a guarantee from failure and tragedy? Merely wanting to accumulate more money is not unhealthy per se, but possessing money as one's central motivation in life certainly is. Money is an inadequate panacea for all these possible and impossible dreams because it is only worth what it can actually buy. Without a balanced view, too many people spend too much time in the lonely pursuit of counting their money."

The Mind of the Markets, by F. J. Chu

 

[neil]

Thought For The day

"A successful person is one who can lay a firm foundation with the bricks that others throw at him."


-David Brink