Quotes can be hilariously comical yet they still hold the power to make you stop and think over your trading strategy.
Some of the greatest traders we have ever known have shared anecdotal wisdom that can guide and motivate the rest of us mere mortals to aspire to their great heights.
For your daily inspiration, sample what a few greats had to say about trading.
- “Volatility is greatest at turning points, diminishing as a new trend becomes established.” – George Soros
It is probably most befitting to start these memorable quotes with a quip from the father of forex trading. George Soros is most famous for “breaking the Bank of England” in 1992 and making a cool $1 Billion during the Black Wednesday Crisis.
He short sold GBP worth about USD 10 billion to make an overnight killing. In this quote, he exhibits his clear focus and long sightedness by advising on volatility and asserting that prices will always settle back and stabilize.
- “You don’t have to be a genius to invest well.” – Warren Buffet
This list cannot be complete without word from the Master Trader, Warren Buffet. In this quip, he reminds us that trading is not about who has the highest IQ or who went to the best college.
Financial trading depends more on how you analyze the market and value the alternating worth of financial instruments.
Your understanding of modern portfolio theory, macroeconomics, or option pricing will not determine your level of trading success.
- “The secret to being successful from a trading perspective is to have an indefatigable and an undying and an unquenchable thirst for information and knowledge.” Paul Tudor Jones
According to Forbes, Paul Tudor Jones is the 108th richest American with a net worth of over 4.3 billion USD.
He believes you should never care about mistakes made 3 seconds earlier. What matters is what you do from there onwards.
In this featured quote, Paul is simply saying what every successful trader knows. You need to constantly keep learning and educating yourself about the market to remain a successful trader.
- “An investment in knowledge pays the best interest.” – Benjamin Franklin
In this memorable quote, Benjamin Franklin sagaciously says what Paul Tudor Jones repeated centuries later. While he was not specifically talking about financial trading, his words remain spot on to this day.
- “In investing, what is comfortable is rarely profitable.” – Robert Arnott
Traders are risk takers, and it is almost impossible to get rich trading without taking risks. A renowned quantitative investor, Robert Arnott is quoted here advising traders to think outside the box and not be afraid to step out of their comfort zones. Riches are usually found where no one else dares go.
- “Every once in a while, the market does something so stupid it takes your breath away.” – Jim Cramer
Jim Cramer, the CNBC host of Mad Money puts in words what all traders experience once in a while.
Despite all efforts to accurately predict market trends and price shifts, there is always a shocker lurking around the corner.
Every trader needs to understand from the get go that there is risk in each and every trade and there are never any sure bets.
- “It’s much easier to learn what you should do in trading than to do it. Good systems tend to violate normal human tendencies.” – William Eckhardt
William Eckhardt is a successful trader and fund manager from Chicago. In this quip, he warns that even though it is fairly easy to master great trading strategies, it is far more difficult to follow through on them.
This is because human nature is easily swayed by emotions such as self-doubt, greed, and fear.
To be a good trader, it is paramount that you learn how to rein in your basic instincts and stick to tried and tested trading plans.
- “The four most dangerous words in investing are ‘This time it’s different’.” – Sir John Templeton
Having lived a glorious trading life from 1912 to 2008, Sir John Templeton underwent experiences that any budding trader can do well to learn from.
In this particular quote, Sir John cautions against doing the same actions and expecting different results.
- “It’s human nature to find patterns where there are none and to find skill where luck is a more likely explanation.” – William Bernstein
Famous for his research in modern portfolio theory, William Bernstein astutely sums up financial trading in this memorable quip.
We all know it is human nature to read the market in ways we want it to move rather than how it really is. Our egos will also attribute every success to advanced skills rather than accept that it was through sheer luck.
10. “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” -Peter Lynch
A former manager of the Magellan Fund, Peter Lynch rightly describes the financial market as unpredictable.
So unpredictable in fact, that even the best traders are usually only right about 60% of the time. The reality of trading is that no one is ever right 100%, not even 90% of the time.
11. “You don`t need to be a weatherman to know which way the wind blows” – Bob Dylan
You know him as a world famous musician. Bob Dylan’s quote can act as a reminder for traders to watch out for trends and trade accordingly.
Profiting from trading is not a reserve for the highly educated or specialist. Anyone with a keen eye and the sense to act in time can make satisfactory big forex profits.
12. “It’s not your salary that makes you rich, it’s your spending habits.” – Charles A. Jaffe
This Belarusian Chess Master’s wisdom is very applicable to trading and life in general.
When it comes to trading, our profitable trades will make you money, but you only get rich by how you utilize those profits.
Similarly, your losses will only bankrupt you if you take on unnecessary risks and not stick to a workable trading strategy.
