Memorable Quotes from How to Trade In Stocks
------------------------------------------------------------------------------------------------------------------------
To speculate successfully, one must form an opinion as to what the next move of importance will be. Speculation is nothing more than anticipating coming movements.
------------------------------------------------------------------------------------------------------------------------
Don't back your judgement UNTIL THE ACTION OF THE MARKET ITSELF CONFIRMS YOUR OPINION.
------------------------------------------------------------------------------------------------------------------------
After forming an opinion do not be too anxious to act on it.
------------------------------------------------------------------------------------------------------------------------
Speculation is very similar to playing cards,poker,bridge or similar game. Each of us is possessed with the common weakness of wanting a hand in every pot.
------------------------------------------------------------------------------------------------------------------------
The speculator who insists on trying to profit from daily minor movements will never be in a position to take advantage of the next important change marketwise when it occurs.
------------------------------------------------------------------------------------------------------------------------
Remember to that it is dangerous to start spreading out all over the market.
------------------------------------------------------------------------------------------------------------------------
One major mistake is the urge to enrich themselves in too short a time. Instead of taking two or three years to make 500% on their capital, they try to do in one or two months.
------------------------------------------------------------------------------------------------------------------------
When a speculator is fortunate enough to double his original capital he should at once draw out one half of the profits to be set aside as reserve.
------------------------------------------------------------------------------------------------------------------------
"Rome was not built in a day" and no real movement of importants ends in one day or in one week. It takes time for it to run its logical course. It is significant that a large part of a market movement occurs in the last 48 hours of a play, and that is the most important time to be in it.
------------------------------------------------------------------------------------------------------------------------
In making speculation a business, one automatically keeps an eye on all markets for the big opportunities.
------------------------------------------------------------------------------------------------------------------------
Bear in mind that of the millions who speculate in all markets only a few devote their entire time to speculation.
------------------------------------------------------------------------------------------------------------------------
My 10% rule - if I lost more than 10%on a trade i sold immediately.
------------------------------------------------------------------------------------------------------------------------
Before you buy, make sure you are buying at a crucial pivotal point and use this spot to establish your exit point if the trade goes bad...even if you get whipsawed and it rallies right back. It did not do what you expected it to do - this is the most important thing to remember.
------------------------------------------------------------------------------------------------------------------------
In the beginning of the trade I watch it as closely as possible, because I have hopefully waited to buy it on a breakout. If it does not breakout or in fact goes in the opposite direction, then I will immediately get out of the trade.
------------------------------------------------------------------------------------------------------------------------
The one thing I learned in my many years of playing the market is that there are always opportunities in the market, so to remain with cash in a stand-by position meant that your money, your inventory, was inactive now but that could yield huge benefits in the future,when it was finally commited to that 'special situation'.
------------------------------------------------------------------------------------------------------------------------
I believe in keeping my capital in circulation.
------------------------------------------------------------------------------------------------------------------------
I have two stops in mind. I have a PRICE STOP and I have a TIME STOP.
------------------------------------------------------------------------------------------------------------------------
Keep stress at bay - act in all ways to keep the mind clear and your judgement correct. I did all I could to achieve this in my physical life by going to bed early, eating and drinking lightly, and taking excercise, standing upright at the stock ticker, standing while on the telephone and demanding silence in the office.
------------------------------------------------------------------------------------------------------------------------
It was when the 'change in trend' started to appear the change in overall market direction that was most difficult moment to catch and act upon. I was always hunting for the clues to the change. But I was always ready to seperate myself from popular thinking , the group thinking and go in the opposite direction, because I belieived in cycles-like life they go up and down.The change in trend is the most difficult in a speculators trading life. These major changes in trend were hell. But I did not want to toboggan downhill with the crowd, unless I had sold stocks short.
whenever I deducted a change was coming, and I wasn't sure exactly when , or how severe the change might be, I cashed in all my positions and waitied.
It is the change in the major trend that hurts most speculators. They simply get caught on the wrong direction ,on the wrong side of the market. To determine if I was right in my appraisal that a change in the market trend was coming I used small position probes.
------------------------------------------------------------------------------------------------------------------------
To play the market properly requires silence, and seclusion to examine the situation, and to appraise and deliberate on new information that comes to hand during the trading day.One must always have a clear strategy for playing the market.
------------------------------------------------------------------------------------------------------------------------
So silence is the best option since there is nothing to gain through informing people of your activities. The self satisfaction for me is "BEING CORRECT" understanding and beating the tape.
------------------------------------------------------------------------------------------------------------------------
The stock market is not operating in the present or reflecting the present; it is operating on what is yet to be the future.
The market often moves contrary to apparent common sense and world events, as if it had a mind of its own, designed to fool most of the people, most of the time. It is therefore foolish to try and anticipate the movement of the market based on curren economic news and current events.
The simple fact is , the market alaways preceeds economic news, it does not react to economic news. |
