“I’ve found over the years that much of what separates the excellent traders form the average ones is not so much their ideas ,but what they do with those ideas. Two traders will have positions go their way and then pull back a bit. The first trader, anticipating punishment, fears losing his gain and takes a quick small profit. The second trader, anticipating reward, adds to the position on the pull back and reaps large gains. Same idea, different outcomes, all as result of conditioned patterns of thinking.”
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Being in the Prediction Business
“After studying forecasting day and night for 30 years, I realized that I don’t know what the market is going to do, and I’ve yet to find anyone who can consistently and reliably forecast an uncertain future” – Ned Davis
“My financial success stands in stark contrast with my ability to forecast events… all my forecasts are extremely tentative and subject to constant revision in the light of market developments” – George Soros
“The art of prophecy is difficult, especially with respect to the future” – Mark Twain
Some Trading Wisdoms
“Never let the fear of striking out get in your way” – Babe Ruth
“If you can’t take a small loss, sooner or later you will have to take the mother of all losses” – Ed Seykota
“Don’t think about what the market is going to do. You have absosutely no control over that. Think about what you are going to do if it gets there.” – William Eckhardt
“I turned from a loser to a winner when I was able to separate my ego needs from making money. When I was able to accept being wrong. Before that, admitting I was wrong was more upsetting than losing money” – Marty Schwartz
“The worst mistake a trader can make is to miss a major profit opportunity. 95% of the profits come from only 5% of the trades” – Richard Dennis