Wise trading words from pro traders
The most successful traders view forex trading as a game of possibilities. Sometimes you win, sometimes you lose. In fact, there are occasions in every trader’s career when a losing streak can seem to go on forever. Losses happen, but what sets successful traders apart is the way they deal with the ups and downs of the markets.
If you are at the point in your trading career where you just feel like quitting, take heart … All successful traders went through what you are feeling, but overcame their doubts to become seasoned traders. They still lose some trades, but they understand that losses go with the territory and all that matters at the end of the day is that your profits far outweigh any losses you make.
Let’s take a look at some wise words from people who’ve made it big in the world of finance:
First impressions can be deceiving, so while some trades may seem appealing or vice versa, they may not be in reality.
“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally”
The importance of being realistic
Always remember that the chance of predicting a winning trade is not 100%. Don’t get emotional – it’s part of trading. You win some, you lose some!
“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.”
Stick to your strategy
Warren Buffet makes a case for how to not ruin your trade. Sometimes traders ruin winning trading strategies with spur of the moment, careless decisions.
“It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently.”
Stay cool, calm and collected
Successful traders don’t allow their emotions to get in the way of their trading. Don’t let fear, excitement or greed affect your strategy and decision-making abilities.
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.”
Know your history
Learn to read charts, so that you can use historical price movements to guide you.
“The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements.”
Is it time for a timeout?
Don’t overtrade. If you’ve been on a winning (or losing) streak, taking a break could be just what the doctor ordered …
“I have learned through the years that after a good run of profits in the markets, it`s very important to take a few days off as a reward. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it.”
The quality of trades matters
Take pride in the quality of your trading. Money and profits are great, but developing the skills to identify winning trades and predict market direction is priceless!
“The goal of a successful trader is to make the best trades. Money is secondary.” Alexander Elder
Uncertainty is your friend
While market volatility and uncertainty increases your exposure to risk, it also presents great trading opportunities!
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected”.
Don’t take it personally
The markets aren’t attacking you, so don’t take it personally every time you make a loss. Letting your emotions run riot can only impact your trading success negatively!
“If you personalize losses, you can’t trade.”
Protect what you have
When you start trading, try not to focus on the making money part. Always be realistic and aim to protect what you have!
“I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have”
Paul Tudor Jones
Where there’s risk, there’s money
The fact is that volatile markets offer traders plenty of profitable trading opportunities! However, volatility brings risk along for the ride. Are you a risk taker or do you prefer a less risky approach?
“In investing, what is comfortable is rarely profitable.”
So that’s our rundown of some of the truest trading words of wisdom. We hope you’ve found some inspiration from the pros.