If you follow TraderRach on Facebook you’ll know I like to share quotes that motivate and inspire traders. Sometimes they’re from trading legends, other successful people and on occasion they’re my own creations.
Here I’d like to share 5 trading quotes I especially like and share my thoughts on them.
1. If everybody’s thinking alike, then somebody isn’t thinking. – George S. Patton
Something like 90% of traders lose. It’s the cold hard facts. To do well in the markets you need to trade to your own tune and not that of popular opinion.
Trades are transacted when buyers and sellers meet and exchange at a price. When there are more buyers than sellers prices rise. When there are more sellers than buyers prices fall.
The best money to be made is to be an early buyer before the rush to buy or an early seller before the rush to sell. Capitalise on the momentum created that follows. When everyone’s thinking it’s time to buy or sell, the premium money to be made is gone.
Be a lone thinker and act early. The higher rewards possible should make up for early false starts if done right.
2. I have two basic rules about winning in trading as well as in life:
(1) If you don’t bet, you can’t win.
(2) If you lose all your chips, you can’t bet.
– Larry Hite, Market Wizards
You must take risks to make money. The more you’re prepared to risk, the more you can win, or lose.
Systems often reward more “risky” feeling systems. That is, systems that are uncomfortable to trade. Trading “safe” for comfort is like watching the grass grow rather than booking your trip to your favourite tropical destination.
On the flip side you have to trade in a way that there is a tomorrow for you. Use prudent money management strategies that protect a portion of your capital, so you can grow your pot of gold. Trading in a way where there is a potential for financial ruin is gambling. That’s not what we’re doing.
3. Success is a lousy teacher. It seduces smart people into thinking they can’t lose. – Bill Gates
Sometimes the sun can really shine on your results and there’s a chance you can feel invincible, euphoric.
Keep your more difficult trading experiences close in your mind. Remind yourself of them at these times so that you remember you can and will lose sometimes. Always be careful with risk, but risk enough so it counts.
4. A trading journey is like going from one side of the maze to another. Quitters turn back. Winners hit many dead ends but eventually find their way through. – TraderRach
Nothing very worthwhile is easy. Trading has unlimited rewards and potential. The destination is worth hitting the obstacles and picking yourself back up and carrying on. Although more the wiser, of course, from the lessons they teach you.
I hope the markets will not be so harsh to you, but obstacles will inevitably come. Trading is about learning the lessons that present themselves and finding a way through to more prosperous trading.
5. Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway. – Warren Buffett
Warren Buffett’s quote is humorous but dangerously true. Be careful whom you get advice from. There’s a world of people out there with an opinion to share, but which of those have something valuable to offer?
Make sure the person you ask advice from is specialised to give advice on that matter, who is expert. Don’t seek advice from them about matters they have no expertise in.
Share in comments:
- What are your thoughts on the quotes shared here?
- How do your experiences relate to them?
- Share your own favourite trading quotes!
Images created and designed by Courtney Hunter © TraderRach
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About the Author: I’m Rachel Hunter, TraderRach, a Forex Trader who helps traders achieve the life they love with forex. Be strategic and design your trading business for sustainable success and have fun! That’s my mission. Join many traders’ gaining the edge with “10 Powerful Lessons for Forex Trading Success” plus other goodies. Years of precious learning specially packaged up for you. My background before trading is as a Chartered Accountant and Chief Financial Officer. I know what it takes to make a trading business rock on. It would give me great pleasure to make a difference to your success.