Never risk more than 1% of your total equity in any one trade.
By risking 1%, I am indifferent to any individual trade.
Keeping your risk small and constant is absolutely critical.
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Getting excited by gains in a trade is the first step toward getting panicky when those gains are threatened.
- Dr. Brett Steenbarger
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The question isn’t “Is the market efficient?” but rather “How inefficient is the market?” and “How can we exploit this?”
- Edward Thorp
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The best investors talk about being keenly aware of what they know and don’t know. Mediocre or dishonest investors pretend they know. Bad investors don’t even know they don’t know.
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Anyone who buys or sells a stock, a bond or a commodity for profit is speculating if he employs intelligent foresight. If he does not, he is gambling.
- Richard ...
The Tape Reader's profits should develop naturally. He should buy or sell because it is the thing to do – not because he wants to make a profit or fears ...
Stress is literally kryptonite to traders. Stress disrupts their equilibrium and affects their decision-making. Anything we can do to minimize the “yips” will flow directly to the bottom-line.
- Gatis ...
We use technical analysis not because we think it means something, but because other people think it means something. We are always looking for market participants to take us out ...
If you really know what's going on, you don't even have to know what's going on to know what's going on... You can ignore the headlines because you anticipated them ...
A simple, albeit less than optimal, investment strategy that is easily followed trumps one that will abandoned at the first sign of under-performance.
- Tadas Viskanta
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