When I’m bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don’t buy long stocks on a scale down, I buy on a scale up.
A man must study general conditions, to seize them so as to be able to anticipate probabilities.
At long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments.
The market always does what it should do, but not always when.
There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time.
The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.
Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start.
I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information.
Heads I win, tails I don’t lose much.
Read every line item until you get it.
Psychology is probably the most important factor in the market – and one that is least understood.
Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.
A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That’s the kind of thing winning traders do.
The trend is your friend except at the end where it bends.
Trying to trade during a losing streak is emotionally devastating. Trying to play ‘catch up’ is lethal.
The goal of a successful trader is to make the best trades. Money is secondary.
The market does not know you exist. You can do nothing to influence it. You can only control your behavior.
Losers bring money into the market which is necessary for the prosperity of the trading industry.
Traders lose because the game is hard, or out of ignorance, or lack of discipline or because of both.
It is hard enough to know what the market is going to do; if you don’t know what you are going to do, the game is lost.