Nuggets
Michael Carr
One of the original Turtles
Don't worry about what the markets are going to do, worry about what you are going to do in response to the markets.
http://www.performance-appraisal.com/SecretsOfMasterTraders.htm
Edwin Lefevre
It was the same with all. They would not take a small loss at first but had held on, in the hope of a recovery that would "let them out even." And prices had sunk and sunk until the loss was so great that it seemed only proper to hold on, if need be a year, for sooner or later prices must come back. But the break "shook them out," and prices just went so much lower because so many people had to sell, whether they would or not. The spectator's chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you, you hope that every day will be the last day -- and you lose more than you should had you not listened to hope -- to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out -- too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!
K Tharp
There are four general categories of exits: 1. Exits that make your initial loss smaller; 2. Exits that maximize your profits; 3. Exits that minimize how much profit you give back; and 4. Psychological Exits.
Tony Saliba
I realized that this chipping away approach was what I should be doing, not putting myself at big risk, trying to collect a ton of dough. I always define my risk, and I don't have to worry about it. No matter what happens, I know my worst case. My loss is always limited. The biggest problem with some traders is that they think they are bigger than the market. They don't fear the market place, and they lose sight of their discipline. If I have a bad day trading or a losing position I either liquidate it or neutralize it, because then I am back afloat.
Michael Carr
One of the original Turtles
Don't worry about what the markets are going to do, worry about what you are going to do in response to the markets.
http://www.performance-appraisal.com/SecretsOfMasterTraders.htm
Edwin Lefevre
It was the same with all. They would not take a small loss at first but had held on, in the hope of a recovery that would "let them out even." And prices had sunk and sunk until the loss was so great that it seemed only proper to hold on, if need be a year, for sooner or later prices must come back. But the break "shook them out," and prices just went so much lower because so many people had to sell, whether they would or not. The spectator's chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you, you hope that every day will be the last day -- and you lose more than you should had you not listened to hope -- to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out -- too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!
K Tharp
There are four general categories of exits: 1. Exits that make your initial loss smaller; 2. Exits that maximize your profits; 3. Exits that minimize how much profit you give back; and 4. Psychological Exits.
Tony Saliba
I realized that this chipping away approach was what I should be doing, not putting myself at big risk, trying to collect a ton of dough. I always define my risk, and I don't have to worry about it. No matter what happens, I know my worst case. My loss is always limited. The biggest problem with some traders is that they think they are bigger than the market. They don't fear the market place, and they lose sight of their discipline. If I have a bad day trading or a losing position I either liquidate it or neutralize it, because then I am back afloat.
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