Top Ten: Trading Quotes Part 2
In this week’s Top Ten installment, I want to share the second five of my top ten trading quotes, these quotes are from traders who I admire and respect, I have these quotes framed and they hang on the wall of my office as a constant reminder and reinforcement of positive principles and habits.
Below I list the second five of my top ten quotes in no particular order along with an explanation of why the quote is meaningful.
6. “Markets offer unlimited opportunities for self-sabotage, as well as for self fulfillment. Acting out your internal conflicts in the marketplace is an expensive proposition. Traders who are not at peace with themselves often try to fulfill their contradictory wishes in their market. If you do not know where you are going, you will wind up somewhere you never wanted to be. You can succeed in trading only if you can handle it as a serious intellectual pursuit. Emotional trading is lethal. To help ensure success, practice defensive money management. A good trader watches his or her capital as successfully as a professional scuba-diver watches his or her air supply” -A Elder
This comment keeps me focused on position sizing personally I never risk for that 1% of my account equity this allows me to remain detached psychologically and financially from the outcome of any single or series of trades, reaming focused on my trading plan and set ups.
7. “Most aspiring traders underestimate the time, work, and money required to become successful. To succeed as a trader, one needs complete commitment. Just as in any entrepreneurial venture, you must have a solid business plan, adequate financing, and a willingness to work long hours. Those seeking shortcuts are doomed to failure. And even if you do everything right, you should still expect to, lose money during the first five years – losses that I view as tuition payments to be made to the school of trading. These are cold hard facts that many would-be traders prefer not to hear or believe, but ignoring them doesn’t change the reality.” M Cook
This gem keeps me focused on ‘the grind’ nature of trading like any endeavor to be successful requires a tremendous amount of hard work and discipline, repeated to the point where it becomes habitual.
8. “This (Trading) is not a job where you get paid by the hour. You get paid for doing the right thing. Forget that your money is at stake. Money in trading account is just a tool for making money. Preserve your tool. You need it to make money. Don’t let the outcome of one trade alter your trading discipline. One trade doesn’t make a system… Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules. You decide your fate; the market doesn’t.… Learn or you are bankrupt. Be aggressive in trending market and conservative in choppy market. Take home runs when you can, but don’t beat yourself up about missing a few. One trade should never make or break your account.” V Graifer & C Schumacher
This quote is fantastic reinforcement of the nature and realities of trading for a living it highlights the necessity for patience and the absolute adherence to a rigorously tested trading plan
9.“My weakness has always been being a bit premature on entering positions. I’ve learned to think to myself, “Patience, patience , patience.” I try to wait until things set up just right before I take a trade. Then, when I am ready to take the trade, I slowly count to ten before I pick up the phone. It’s better to have the wrong idea and good timing than the right idea and bad timing”. L B Rashcke
A gem from one of my most admired and respected pro’s ‘patience. patience, patience’ nothing more to add
10. “ You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody. This is the life of a successful trader. Many aspire to this but few succeed. An amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the money – and loses. He reaches again – and loses more. Traders lose because the game is hard, or out of ignorance, or lack of discipline or because of both.” A.Elder
And last but not least a reminder from a world class trader why I am in this business and what I truly aspire to, a life of liberty underpinned by a disciplined and patient approach to my trading business!