Thought For The Day

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Thought For THe Day

"Being centered enables you to commit to a specific trading objective, and then control your fear of losing so you don't trade too cautiously. Fear of failure traps many traders in a narrow trading range, making them reluctant to expand their profitability. Once centered, you can follow the market trend, cut your losses, and let your profits run."

Ari Kiev, M.D., author: Trading to Win

 

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"Every case will be different, but the rule for getting out holds: what matters is that we have a rational formula for getting out which is worked out beforehand." -

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

 

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"If you already know that the terrible anxiety of financial loss would be more than you can mentally and emotionally tolerate, this concern must be weighed heavily in the risks you take."

Steven Hendlin, Ph.D., author: The Disciplined Online Investor

 

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"For the past 17 years I've had a friend whose wife is fat. She is an elegant dresser, and she has been on a diet for as long as I have known her. She says she wants to lose weight and she does not eat cake or potatoes in front of people - but when I come into her kitchen, I often see her go at it with a big fork. She says she wants to be slim, but remains as fat today as the day we met. Why?

"The short-term pleasure of eating is stronger for her than the delayed pleasure and health benefits of weight loss. My friend's wife reminds me of a great many traders who say they want to be successful but keep making impulsive trades - going for the short-term thrills of gambling in the markets.

"People deceive themselves and play games with themselves. Lying to others is bad enough, but lying to yourself is hopeless. Bookstores are full of good books on dieting, but the world is full of overweight people."

Alexander Elder, author: Trading for a Living

 

[Rocketman]

It's either a hobby or a job, it must be one or the other. Most people live mundane lives so they get into fishing or pool or the stockmarket. You have to know what u want in this life and if you aim for nothing then nothing is all you can get.

Most people are honest with other people, but not with themselves.

Rocketman.

 

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"You have to maintain your perspective. There is more to life than trading.... If you feel too good when things are going well, then inevitably you will feel too bad when they are going poorly."

Richard Dennis, as quoted in Market Wizards, by Jack Schwager

 

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Thought For THe Day

"It is crucial to maintain a good attitude, so it is important to approach investing with positive thinking. Don't be glum. Avoid foolish thoughts. Learn from every experience. Do what you are supposed to do. No door closes that doesn't open another. If you have your health, you still have everything - without health, you have nothing. Tomorrow is another day. We live and learn. Life goes on - this is the way it is and therefore is supposed to be. Investing results are no reflection on your manhood, or your womanhood. We have ups and downs, and we will prevail. We have defeats yet are never defeated. There are no guarantees. If you don't have any other options, you don’t have a problem, so don't worry about what you can't affect; the challenge is to understand when there are no other options, and to stop chasing what does not work. When you hear bad news yet can't change it, don't worry about it; the world was made that way and it will remain so long after we’re gone. Let things be."

James Dines, author: Mass Psychology

 

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Thought For THe Day

"Both individual and professional investors can be overconfident about their abilities, knowledge, and future prospects. Overconfidence leads to excessive trading that can lower portfolio returns."
John R. Nofsinger, author: Investment Madness

 

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"Knute Rochne, the famous Notre Dame football coach, used to say, 'The way to succeed is to build up your weaknesses until they become your strengths.' The reason the rank and file either lose money or achieve embarrassing results is because they simply make too many mistakes.... First-time speculators want to make a killing in the market. They want too much, too fast, without doing the necessary study and preparation or acquiring the essential methods and skills. They are looking for an easy way to make a quick buck without spending any time or effort really learning what they are doing."

William J. O'Neil, newspaper publisher and author: How To Make Money in Stocks

 

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Thought For THe Day

"... You have to find individuals who have a curious blend of ego. You clearly need to have people who have a very strong self-confidence, who have a very strong ego. In some cases, you'll find individuals who manifest that as a kind of arrogance which can rub people the wrong way at times. Sometimes that arrogance can be very important because, after all, you are going to be a loser more often than you're right.... And if you have to have that arrogance or courage, then that's alright.
"However, it is not courageous to say, 'I am going to make this one big bet even though everyone else says I am wrong.' That is the home-run scenario and that is not what we are talking about. We are talking about the courage and self-confidence and ego not just to go against the crowd but to be wrong, a lot."

Alpesh B. Patel, financial columnist and author: The Mind of a Trader

 

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"Whenever I take a position, I like to imagine what it would be like under the worst-case scenario. In doing so, I minimize the confusion if that situation actually develops. In my view, losses are a very important part of trading. When a loss happens, I believe in embracing it. By embracing a loss, really feeling it, I tend to have less fear about a potential loss the next time around. If I can't get over the emotions of taking a loss in twenty-four hours, then I'm trading too large or doing something else wrong. Also, the process of rehearsing potential losses and confronting actual losses helps me adapt to increasing levels of risk over time."

Gil Blake, as quoted in The New Market Wizards, by Jack Schwager

 

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Thought For THe Day

"During the 10 years I traded for George Soros, I never heard him speak once about a winning trade. To hear him talk, you'd think he had had nothing but losers. Conversely, listening to the biggest losers, you'd think they had nothing but winners . . . Soros gave me this advice on an occasion when I had scored a big win for him: "Climb off your horse. You're only as good as tomorrow's trade. Why are you always fighting the trend" Why do you make it so hard for yourself? Are you a masochist?"

Victor Niederhoffer, trader and author: The Education of a Speculator

 

[riophil]

No my horse is.

 

[Uncle]

If you want the rainbow, you have to put up with the rain

John

 

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"People are overconfident. Psychologists have determined that overconfidence causes people to overestimate their knowledge, underestimate risks, and exaggerate their ability to control events. Does overconfidence occur in investment decision-making? Security selection is a difficult task. It is precisely this type of task at which people exhibit the greatest overconfidence."

John R. Nofsinger, author: Investment Madness

 

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"Don't concentrate on winning; concentrate on the process that creates winning."

Mark Boucher, Trader and author of The Hedge Fund Edge

 

[whyowhy]

Thought for the day

"The wise know nothing....they consider everything"

Y

 

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"I have a lot more instinct than discipline. I have a tendency to make a lot and then lose a lot, because my instincts are far superior to my discipline. I'd probably be up some ridiculous amount of money this year if I had better discipline. I'm working on it. I write in a journal every day, which I'm very finding very helpful.
"I sit for 10 minutes after the market close and talk to myself. I go over what I did right, what I did wrong. Sometimes I'll call myself an idiot and say I should have done this or that. Other times I'll tell myself, 'Keep your head up; it's not so bad. You'll get them tomorrow.' Positive things, sometimes negative things, but words that make me feel better."

Friedfertig and West, authors: Electronic Day Traders' Secrets

 

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"Now, there are several major problems that result when fear becomes a motivation to do or not do something. First it will limit your range of perceived opportunities by narrowing your focus of attention, keeping it on the object of your fear . . . Your fear will systematically exclude from your awareness market information that would indicate the existence of other alternatives and opportunities?..Fear will also limit your range of responses to any given situation. Many traders suffer considerably when they know exactly what they want to do but, when the moment arrives, find themselves completely immobilized."

Mark Douglas, trader and author: The Disciplined Trader

 

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" The whole secret to winning in the stock market is to lose the least amount when your not right. "

William J. O'Neil