Trading Wisdom
-- Buy low, sell high.
-- Buy high, sell higher.
-- Don't fight the Fed.
-- Don't fight the tape.
-- Pigs get fat, hogs get slaughtered. Or: Pigs get FED, hogs get slaughtered.
-- Bulls make money. Bears make money. Pigs get slaughtered.
-- The trend is your friend.
-- Trade in the direction of the trend.
-- Buy the dips, sell the rallies.
-- Buy the rumor, sell the fact.
-- Buy into bad news and sell into good news.
-- Buy the panic, sell the greed.
-- Buy strength, sell weakness.
-- Never short a dull market.
-- Cut losses short, let profits run.
-- When in doubt, stay out.
-- Get out when you can, not when you have to.
-- Minimize losses.
-- Never let a winner turn into a loser.
-- Never let a small loss turn into a big loss.
-- Lose your opinion, not your money.
-- Trade what you see, not what you think.
-- When in doubt, sell. You will usually get another chance in something else.
-- Quickly exit losing trades and move on to the next opportunity.
-- Date them, don't marry them.
-- You can't go broke taking profits.
-- A profitable trade is a good trade.
-- Take profits relentlessly.
-- If you don't take profits, someone will take them for you.
-- Profits aren't as important as preserving your capital.
-- Manage the risk and the profits will take care of themselves.
-- It's better to own too few shares than too many.
-- Average up, not down. Add to winners, not losers.
-- Plan your trades. Trade your plan.
-- Predetermine the exit strategy for all trades. Always have a plan for selling, as well as for buying.
-- Know the fundamentals. Trade the technicals.
-- Volume precedes price.
-- Bottoms take longer to form than tops.
-- Buy at support, sell at resistance.
-- Sell on the stall before the fall.
-- Buy 'em when they're sleepin', hold 'em when they're creepin', sell 'em when they're leapin'.
-- The best time to buy is when blood is running in the streets. (Nathan M. Rothschild)
-- The crowd is right during the trends but wrong at both ends. (Humphrey B. Neill)
-- Buy when most people are selling, and sell when most people are buying.
-- Buy their pain, not their gain.
-- Beat the crowd in and out the door. You have to take their money before they take yours, period.
-- Successful traders are quick to change their minds and have little pride of opinion. (Don Worden)
-- The most profitable traders spend 80 percent of their time finding a fast-moving market, and 20 percent of their time trading it. (David Bowden)
-- There's only one indicator that counts: The Check-Book Indicator. (David Bowden)
-- Risk varies inversely with knowledge. (Irving Fisher)
-- I made my money because I always got out too soon. (Bernard Baruch)
-- Don't try to buy at the bottom and sell at the top. It can't be done except by liars. (Bernard Baruch)
-- Even being right three or four times out of 10 should yield a person a fortune if they have the sense to cut losses quickly. (Bernard Baruch)
-- Never confuse genius with a bull market.
-- Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. (Sir John Templeton, founder of Templeton Funds)
-- Buy at the point of maximum pessimism and sell at the point of maximum optimism. (Sir John Templeton)
-- All stocks are crap. (Wayne Rumball)
[Revised January 1, 2002]
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