This Week Trading Quotes
HARMONY
Your last trade obviously has nothing to do with the potential that exists in the market at any given moment. When you feel compelled to get back, it puts you in an adversary relationship with the market. The market becomes your opponent, it is you against it, instead of being in harmony with it.----The Disciplined Trader,Mark Douglas
RIGHT TIME
People don't seem to grasp easily the fundamentals of stock trading. I have often said that to buy on a rising market is the most comfortable way of buying stocks. Now, the point is not so much to buy as cheap as possible or go short at top prices, but to buy or sell at the right time. When I am bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don't buy long stock on a scale down, I buy on a scale up.----REMINISCENCES OF A STOCK OPERATOR by Edwin LeFevre
Great Trading Resource
EIGHT COGNITIVE BIASES
1) Loss Aversion - The tendency for people to have a strong preference for avoiding loses over acquiring gains.
2) Sunk Costs Effect - The tendency to treat money that already has been committed or spent as more valuable than money that may be spent in the future.
3) Disposition Effect - The tendency for people to lock in gains and ride losses.
4) Outcome Bias - The tendency to judge a decision by its outcome rather than by the quality of the decision at the time it was made...... more
