Thought of the Day (August 20, 2009)

You have to find individuals who have a curious blend of ego. You clearly need to have people who have a very strong self-confidence, who have a very strong ego. In some cases, you’ll find individuals who manifest that as a kind of arrogance which can rub people the wrong way at times. Sometimes that arrogance can be very important because, after all, you are going to be a loser more often than you’re right. And if you have to have that arrogance or courage, then that’s alright.

However, it is not courageous to say, ’I am going to make this one big bet even though everyone else says I am wrong.’ That is the home-run scenario and that is not what we are talking about. We are talking about the courage and self-confidence and ego not just to go against the crowd but to be wrong, a lot.

– Alpesh Patel, The Mind of a Trader

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Thought of the Day (August 19, 2009)

The players who score the most runs are home run hitters, not those with consistent batting records. It’s the same with trading. Consistency is something to strive for, but it’s not always optimal. Trading is a waiting game. You sit and wait and make a lot of money all at once. The profits tend to come in bunches. The secret is to go sideways between the home runs, not lose too much between them.

– James DiMaria, Trader

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Thought of the Day (August 18, 2009)

When I’ve observed other traders, the best ones are always aggressive. They don’t even think about the trade, they just do it. And that’s a trait that I really admire. But the thing is, they’re aggressive and they take care of their capital. They’re only aggressive when they perceive a good opportunity. As soon as the opportunities disappear, or if they’re losing money, then they stop. It’s seems like a kind of a switch that they can turn on and off, which I think is a really good thing.

– Michael Friesen

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Thought of the Day (August 17, 2009)

To make any method work, you have to develop the strict discipline to follow all of the rules, not just the ones you find agreeable.

– William O’Neil

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Thought of the Day (August 16, 2009)

Think like a guerrilla warrior. Fight on the side of the market that is winning. Don’t waste time and capital on futile efforts to gain fame by buying the lows, or selling the highs, of some market movement. Your duty is to earn profits by fighting alongside the winning forces. If neither side is winning, then don’t fight at all.

– StoryTeller, TMF Boards

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Thought of the Day (August 15, 2009)

These faults can be found in many traders and investors: Do not be careless or reckless with your trading. You trade for profit, not for fun and games. Do not be timid; once you have identified an opportunity, attack it. Act on it. Do not get angry over a losing trade and swear to get even. You won’t. Do not get down on yourself for a losing trade, or even a string of losing trades. Find out what you are doing wrong and correct the problem. Do not fall in love with a stock, a bond, or anything else. You must learn that this is conflict, and you must be rather mercenary with your trading and investing.

– Dean Lundell, Sun Tzu’s Art of War for Traders and Investors

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Thought of the Day (August 14, 2009)

One of the greatest dangers that traders face is uncertainty about the approach they are taking, and whether or not it’s going to continue working. I find, invariably, that just when people write something off is the exact wrong time to stop using it.

– Curtis Faith

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