.Although this book is not really one of my favourites, there are some good trading quotes that I like from that book. So, I think it may be good to share them here too.
Here are the trading quotes:
Have A Plan
In trading, as in life, you need a plan. This plan includes not only the micro – a strategy for each and every trade you make – but also the macro – meaning why you trade, how you intend to reach that goal (your means to the desired end), and what you’ll do as an alternative if that doesn’t work out.
Know what you want to accomplish, how you intend to get there, and what you will do if it does – or does not – work out. Have a plan and stick with it. That works in trading, as well as in life.
I Know Who I Am
Coming to term with who I am as a trading, knowing my limitations, and doing what I do well – and not doing those things that I have no clue about – has brought me continued success.
Too many people want to be who they are not, and professionally – whether in trading or in another field of business – that’s where they run into trouble.
Discipline and Comfortable With Yourself
You don’t need complicated Einstein formulas to make money in the markets.
You do need to be disciplined and comfortable with yourself.
No matter how good of a trader you think you are, the markets are always going to screw with your head and test your mental fortitude.
Remember, the survivors are also the ones who make up the market’s success stories.
Time Stop
An important rule of trading is that time is much more important than price.
Successful trading is a matter of seeking out immediate gratification. If the market doesn’t move your way within a short time of putting on a trade, just get out.
Most people trade just with Price Stops and not with Time Stops. They think they have to endure some initial pain. You, however, should not.
Get Out When You’re Wrong
Successful traders know that discipline is what allows them to enter their trades when the odds are in their favor and, more importantly, to get out when they’re wrong.
Being right is not the problem. What you do when you’re wrong is the crucial issue.
There are a lot of traders who buy then pray while the market goes against them, because they think that it will eventually go their way.
Most traders average down and wait for the market to turn their way.
Trading my way, I always have defined amount of money that I am willing to lose.
I let the market decide how much money I’m going to make.
Good News/Bad Action
When the news is good but the market just does not rise correspondingly, sell.
Continue to Part 2.
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