Edwin Lefevre:
It was the same with all. They would not take a small loss at first but had held on, in the hope of a recovery that would "let them out even." And prices had sunk and sunk until the loss was so great that it seemed only proper to hold on, if need be a year, for sooner or later prices must come back. But the break "shook them out," and prices just went so much lower because so many people had to sell, whether they would or not.
The spectator's chief enemies are always boring from within. It is inseparable from human nature to hope and to fear.
In speculation when the market goes against you, you hope that every day will be the last day -- and you lose more than you should had you not listened to hope
-- to the same ally that is so potent a success-bringer to empire builders and pioneers, big and little.
And when the market goes your way you become fearful that the next day will take away your profit, and you get out -- to soon.
Fear keeps you from making as much money as you ought to.
The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope.
He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.
It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!
(I am trying to finally memorize these quotes...should have done it a long time ago...<ggg>)
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