Hoping

Turning a losing trade into an “investment” is a common disease among small private traders, but some institutional traders also suffer from it. Disasters at banks and major financial firms occur when poorly supervised traders lose money in short-term trades and stick them into long-term accounts, hoping that time will bail them out.----Dr. Alexander Elder

Against The General Trend

It was simple enough. In a bull market the trend of prices, of course, is decidedly and definitely upward. Therefore whenever a stock goes against the general trend you are justified in assuming that there is something wrong with that particular stock. It is enough for the experienced trader to perceive that something is wrong. He must not expect the tape to become a lecturer. His job is to listen for it to say "Get out!" and not wait for it to submit a legal brief for approval. -----REMINISCENCES OF A STOCK OPERATOR by Edwin LeFevre

Success

Success actually can stimulate fears about failing and about the impossibility of success. These increased anxiety levels may result in selfdestructive behavior and a succession of losing trades that bring the trader back to the starting point.----Trading to Win, Ari Kiev

Cool

Nothing gives one person so much advantage over another as to remain always cool and unruffled under all circumstances.— Thomas Jefferson

Accept

To be a successful trader, you must accept total responsibility for your decisions and actions.----Dr. Alexander Elder

Taking The Loss

A loss never bothers me after I take it. I forget it overnight. But being wrong — not taking the loss —that is what does damage to the pocketbook and to the soul.— Jesse Livermore

Screaming Buy

When a falling stock becomes a screaming buy because it cannot conceivably drop further, try to buy it 30 percent lower.
— Al Rizzo (1986)

Insider Purchase

Almost any insider purchase is worth investigating for a possible lead to a superior speculation. But very few insider sales justify concern.— William Chidester

Averaging Down

Averaging down in a bear market is tantamount to taking a seat on the down escalator at Macy’s.
— Richard Russell (Dow Theory Letters, 1984)

Chart

Charts not only tell what was, they tell what is; and a trend from was to is (projected linearly into the will be) contains better percentages than clumsy guessing.
— R. A. Levy

Bail & PAY

A bull market tends to bail you out of all your mistakes. Conversely, bear markets make you PAY for your mistakes.— Richard Russell (Dow Theory Letters)

Fact

If the models are telling you to sell, sell, sell, but only buyers are out there, don’t be a jerk. Buy!
— William Silber, Ph.D. (N.Y.U., Newsweek, 1986)

Knowledge and Discipline

A successful trader must hop over several high hurdles— and keep hopping. Being better than average is not good enough—you have to be head and shoulders above the crowd. You can win only if you have both knowledge and discipline.----Dr. Alexander Elder