If we were to ask who the biggest trader in history was, many of you surely would think about Warren Buffet. This business magnate and philanthropist, is the most successful investor of the 20th century. Indeed, he ranked among the world’s wealthiest people.
In recent years, however, there were also other people who have established themselves as professional traders whose quotes have become famous and an inspiration to those who are facing the world of trading in a more or less professional way.
Here the top 10 quotes from famous traders.
“Rule number one of investing is never lose money. Rule number two is never forget rule number 1.” – Warren Buffet
It is wrong to pretend that investor should not lose money. They will, there are no guarantees because the market uncertainty. But professional traders learnt from those losses and the pain of their mistakes has prevented them from doing it again. So, avoiding the big losses is the key.
This Warren Buffet’s quote can also be connected to the following one:
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” – George Soros
“Losers average losers.” – Paul Tudor Jones
What he means by this is don’t add to your positions when they are showing you a loss. “If you have a losing position that is making you uncomfortable, the solution is very simple: get out, because you can always get back in”.
“I know from experience that nobody can give me a tip or series of tips that will make more money for me than my own judgment.” – Jesse Livermore
Tips cost Livermore hundreds of thousands of dollars, especially the kind casually given on the street by uninformed acquaintances. It is preferred to trade alone based on our own strategies and analysis.
“The four most dangerous words in investing are: ‘this time it’s different.'” – Sir John Templeton
The most important thing to do when you are trading is to follow market trends and history. Nothing else matter.
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” – Peter Lynch
Traders always have to handle volatility associated with their investment markets.
“Listen only to what the market is saying now. Forget what you thought it was saying 5 minutes ago.” – Marty Schwartz
Trading is a psychological game. If you are a trader, you play against yourself not against the market. Stop trying to will things to happen in order to prove that you are right.
“It can be very expensive to try to convince the markets you are right.” – Ed Seykota
“If you diversify, control your risk, and go with the trend, it just has to work.”- Larry Hite
Hite summed up in one sentence the basics that a trader should follow to succeed.
The last quote is not of a famous trader but I think it is important that every trader keep this in mind:
“Luck is what happens when preparation meets opportunity.” – Seneca
Be prepared, trading is not pure luck. You will build luck by yourself.