Given that there is no formal education for learning how to be a speculator, I think it’s critical for a person who desires to become a successful trader that he or she spends significant amount of time learning from others. By this, I don’t mean the “get-rich-quick-with-my-awesome-sure-fire-system” crooks that sells their workshops all over the web. I’m talking about proven multi-year provable track-record traders. Thank God for Jack D. Schwager who has done a lot of the work for you already. His serie of Market Wizards books are a goldmine of wisdom and insights.
Here are some of the quotes that inspired me in the early days of trading:
I also know instinctively that worrying about the money, looking at my trading balance is the worst thing I can do. It is important for a trader to trade the markets, not his or her capital balance. The goal is to be a consistent performer and then let the money take care of itself.
~ Peter Brandt (40-year discretionary trading record)
One of them is that I need to forgive myself very quickly when I do something stupid. I can sit and hold previous mistakes over my head, and mistakes will compound if I do that. You have to be able to clear your conscience of the mistake you just made. If you beat yourself up and hold onto something, you’re going to make another error. I was 35 years old when my Swiss Franc trade happened. It all really started for me when I was 35.
~ Peter Brandt
Success breeds complacency. Complacency breeds failure. Only the paranoid survive.
~Andrew Grove. (One of the founder of Intel)
Courage in a speculator is merely the confidence to act on the decision of his mind.
~ Dickson Watts by Edwin Lefevre in “Reminiscences of a Stock Operator“
You can’t quantify reward by you can quantify risk.
It can take one day what took years to build.
When you’re getting beat to death, get your head out of the mixer.