Top Trading Quotes – Part 3

wisdom

If you pick up trading books or end up doing some heavy research on how to successfully start trading and making money, you will often come across powerful trading quotes shared by some of the world’s most influential and powerful traders and investors.

 And if you study them and focus on what is being said, there is no doubt that you would start to realize the true dynamics of the world of trading. Mentioned below are 6 of the greatest quotes you can follow to get inspired and many of you have traded before and for those who still do, will see the power behind each quote and how they can change the way you trade.

And believe it or not, rich investors and traders are the first people in this line who realize their mistakes and are quick to learn from them. And this is the ability that has led them in becoming the most successful traders the world has ever seen:

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1.“Good investing is a peculiar balance between the conviction to follow your ideas and the flexibility to recognize when you have made a mistake. “ -Michael Steinhardt

If there is something that this quote teaches you, it is you can never stay bearish or bullish but instead feel the flow of the current market. And be sure to be on the side of those who make all the money.

jesse livermore quote

jesse livermore quote

2.“There is only one side of the market and it is not the bull side or the bear side, but the right side.” -Jesse Livermore

If you look at it from a wider perspective, trading is more than just a bunch of numbers and calculations, remember that traders like Jesse Livermore engage in three dimensional trading.

alexander elder quote

alexander elder quote

3.“Successful trading depends on the 3M`s – Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well as firm rules for pulling the trigger – deciding when to buy and sell. Money refers to how you manage your trading capital.” – Alexander Elder

It is important to understand that the money is always in the central market trend and you would be wise to know that it does not jump in and out. Managing your capital is all the game is about.

jesse livermore quote

jesse livermore quote

4.“I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements-that is, not in reading the tape but in sizing up the entire market and its trend.” – Jesse Livermore

This is perhaps the most efficient way of calculating short-term trends and be on the right track for all the main moves. Primary moving averages are the perfect measuring tools for keeping investors and traders on the good side of the stock.

marty schwartz quote

marty schwartz quote

5.“The 10 day exponential moving average (EMA) is my favorite indicator to determine the major trend. I call this “red light, green light” because it is imperative in trading to remain on the correct side of moving average to give yourself the best probability of success. When you are trading above the 10 day, you have the green light, the market is in positive mode and you should be thinking buy. Conversely, trading below the average is a red light. The market is in a negative mode and you should be thinking sell.” – Marty Schwartz

Did you ever give a thought to why most successful traders let the winners roam free while cutting all the losers free? The only way to be victorious at the end of the day is to have your winners compensate for the losers and leave you with all the profits.

george soros quote

george soros quote

6.“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

Let’s talk about the risk of ruin for a moment. If you want to eliminate the threat of ruin, all you have to do is risk 1% of your trading capital on each trade you make which ultimately will make the odds of your ruin 0%.