True

Panics do not destroy capital—they merely reveal the extent to which it has previously been

destroyed by its betrayal in hopelessly unproductive works.-----Michael W. Covel

Basic

If you must play, decide upon three things at the start: the rules of the game,

the stakes, and quitting time------Michael W. Covel

Flow

Do not strive for things occurring to occur as you wish, but wish the things occurring as they occur,

and you will flow well.----Michael W. Covel

True Winner

If you want to end up with a nonaverage net worth, a “learn from someone else” attitude is paramount. Putting your ego aside and admitting that you don’t know it all isn’t easy, but it is the mindset of true winner ----Paul Tudor

Jones.

Probability

When you really believe that trading is simply a probability game, concepts like right and wrong or win or lose no longer have the same significance.---- Michael W. Covel

Knowing

Knowing others is wisdom ; Knowing self is enlightenment ; Mastering others requires force ; Mastering self needs strength ---- Michael W. Covel

Crisis

“The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.”
Rudiger Dornbusch

Risk And Bubble

"The reality of risk is much less simple and straightforward than the perception. People vastly overestimate their ability to recognize risk and underestimate what it takes to avoid it; thus, they accept risk unknowingly and in so doing contribute to its creation.

"Risk arises as investor behavior alters the market. Investors bid up assets, accelerating into the present appreciation that otherwise would have occurred in the future, and thus lowering prospective returns. And as their psychology strengthens and they become bolder and less worried, investors cease to demand adequate risk premiums. The ultimate irony lies in the fact that the reward for taking incremental risk shrinks as more people move to take it.

"People often say, 'It's not cheap, but I think it'll keep going up because of excess liquidity (or any number of other reasons). In other words, they say, 'It's fully priced, but I think it'll become more so.' Buying or holding on that basis is extremely chancy, but that's what makes bubbles. In bubbles, infatuation with market momentum takes over from any notion of value and fair price, and greed (plus the pain of standing by as others make seemingly easy money) neutralizes any prudence that might otherwise hold sway."

Howard Marks