Quotes from famous traders
"Risk comes from not knowing what you're doing."
- Warren Buffett, 4th richest man in the world
"Show me a trader with good records and I'll show you a good trader."
- Dr. Alexander Elder, author of several books including Come into my trading room and Trading for a living and partner in SpikeTrade.
"Think about the psychological process involved. At the beginning, the trader fell for the lure of making easy money. When the stock declined to $18, he felt a little anxious. When it fell to $17, he felt the onset of panic. When the stock slid to $15, it was pure panic. When he finally got out, he felt a sense of relief - which is somewhat ironic since he had just lost 70 percent of his money. There’s nothing logical about this process. It’s all an emotional pitfall. Planning where to get out before putting on the trade is a means of enforcing emotional discipline."
- Jack D. Schwager, author of The Market Wizards series books
"If you diversify, control your risk, and go with the trend, it just has to work."
- Larry Hite, famous hedge fund manager
"You need a well-thought-out plan which anticipates all potential scenarios to keep you from making impulsive and emotional decisions during market hours. You are being bombarded constantly with new information from peers, television, price action, websites, etc. Trading stocks is a business, and if you want your business to thrive you must have a plan which you execute flawlessly."
- Brian Shannon, from his book Technical Analysis Using Multiple Timeframes
"I never use valuation to time the market. I use liquidity considerations and technical analysis for timing. Valuation only tells me how far the market can go once a catalyst enters the picture to change the market direction. The catalyst is liquidity, and hopefully my technical analysis will pick it up."
- Stanley Druckenmiller, legendary investor and hedge fund manager of Duquesne Capital
"Technical analysis is a skill that improves with experience and study. Always be a student and keep learning."
- John Murphy, author of The Visual Investor: How to Spot Market Trends as well as other books and Chief Technical Analyst at StockCharts.com
"The whole secret to winning and losing in the stock market is to lose the least amount possible when you're not right."
- William J. O'Neil, author of several books including How to Make Money in Stocks, inventor of CANSLIM and founder of the national financial newspaper Investor's Business Daily, which competes with The Wall Street Journal.
"The Journal is a business plan. The right plan, executed faithfully, can be the difference between success and failure in any endeavor."
- Brett N. Steenbarger, Ph.D. - author of The Psychology of Trading: Tools and Techniques for Minding the Markets , Head of Trader Development at Tudor Investments and blogger at TraderFeed.
"Speculators without a plan are like a general without a strategy, and therefore without an actionable battle plan. Speculators without a single clear plan can only act and react, act and react, to the slings and arrows of stock market misfortune, until they are defeated."
- Jesse Livermore, author of Reminiscences of a Stock Operator