Most people like to think of themselves as risk takers, but what they really want is a guaranteed outcome with some momentary suspense to make them feel as if the outcome had been in doubt. The momentary suspense adds the thrill factor necessary to keep our lives from getting too boring. -- Mark Douglas
You can discover what your enemy fears most by observing the means he uses to frighten you.
Lots of famous one-liners in his books, let your winners run, cut losers quick, etc.
Ed Seykota famous for his "Moron rule", where morons keep adding more on to their position when they are wrong. PTJ famous for "Don't focus on making money; focus on protecting what you have."
Marty Schwartz for "Learn to take losses. The most important thing in making money is not letting your losses get out of hand".
Tom Basso for "I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell."
Bruce Kovner "Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose"
Van Tharp "The realization that you are responsible for your results is the key to successful investing. Winners know they are responsible for their results; losers think they are not."
When I first read these passages, they didn't seem particularly insightful (at least to me as a then less experienced trader) but after years of thinking about them and becoming more experienced, they are actually incredibly insightful and really sum things up nicely. What other one-liners can he recall that really separate the successful from the unsuccessful?
Wanted to stick them here so I can add them to our database.
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Time is only good for winners - Luger
A losers guide to time...
Why did my winning trade turn into a loser? -- Too much time.
Why did my loser get worse? -- Way too much time.
I could have gotten out of that trader breakeven, why didn't I? -- Bad choice of time.
See that loser came back and I broke even, then it went even higher, why didn't I stick with it? -- Ran out of time.
Damn, I blew up my account...How did I do that? -- It is only a matter of time...
A winners guide to time...
Big trade!!! How could you hold that long? -- Needed more time.
Why did you stop that trade so quick for a loss? -- Wrong time.
How did you know to flip short before the huge drop? -- It was about time.
Your loser from this morning went straight to the moon. How did you hold that all day? -- Plenty of time.
Do you think you will be rich some day? -- It is only a matter of time...
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