"The goal of a successful trader is to make the best trades. Money is secondary."
"Most private traders on a losing streak keep trying to trade their way out of a hole. A loser thinks a successful trade is just around the corner, and that his luck is about to turn. He keeps putting on more trades and increases his size, all the while digging himself a deeper hole in the ice. The sensible thing to do would be to reduce your trading size and then stop and review your system."
28 likes
Source: Alexander Elder (1993). “Trading for a Living: Psychology, Trading Tactics, Money Management”, p.1, John Wiley & Sons
About the author
Same author
More quotes by Alexander Elder
"Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets."
"Successful trading depends on the 3M`s - Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well as firm rules for pulling the trigger - deciding when to buy and sell. Money refers to how you manage your trading capital."
"Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds."
"The market does not know you exist. You can do nothing to influence it. You can only control your behavior."
"When a beginner wins he feels brilliant and invincible Then he takes wild risk and loses everything."