Most of us believe that money-making is a game that is played with forces outside ourselves, forces such as the economy, the stock market, interest rates, the Fed, government policies, employment statistics and the like. But as you move along a spiritual path and begin to get a taste of the power of your invisible self, you discover that money-making is merely a game that you play with yourself.
– Wayne Dyer
In this business, you never stop learning. Let me put it another way. If you stop learning, you’re on your way to going out of business. Wall Street is a tough teacher but also a good teacher. If you have any weakness – arrogance, laziness, stinginess, cowardice, procrastination – the market will zero in on that weakness and make you pay dearly.
– Richard Russel
FROM earnings estimates to research reports, most investors aren’t just informed. They’re saturated. There are literally hundreds of columnists, money managers and message-board contributors, all eager to tell you where the market may or may not be headed. And for every bullish voice, there’s usually an accompanying bearish one as well. After all, two sides make a market.
But all the Web’s information overload encourages most investors to focus on the wrong question — whether to buy, sell or hold a stock. Now, you wouldn’t think this would be such a complicated problem. After all, pick a stock and you’ve got at least even odds that it will appreciate. In fact, you’ve got better than even odds, since the market has historically demonstrated an upward bias. So then why do so many people lose money buying individual stocks, and lose even more money trading them?
The answer is because trading is a matter of technique, not simple prognostication. What has been missing from this seemingly endless (and often mind-numbing dialog) about the market’s next move is frank discussion about the craft of trading. (more…)
The great traders all hold one thing in common: they know exactly what they want to do in the market and possess the inner strength and will to do it. That’s what separates them from the wannabes.
– Howard Abell
Keep a trading journal. It’s difficult to learn from mistakes if you don’t remember them. Always keep your past mistakes, and successes, close at hand. Keep your eyes open, and write down the market actions and reactions you see. Write down how the market moves at certain points. A thorough journal is as valuable as any trading handbook yet written.
– StoryTeller, TMF Boards
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