I liked the quote from George Soros I used earlier this month, so I thought I’d dig out a few more words of wisdom.
In doing so, I’m well aware that this is precisely the kind of activity a sucker loves to engage in. Jesse Livermore said:
“The semi-sucker had read books about trading – usually written by yet higher grade suckers – but he did not realize that reading books was not the same as trading experience. This type of sucker could quote all sorts of wise sayings about the operations of the stock market. He did not lose money as quickly as the beginning sucker because he had learned some of the most rudimentary trading rules.”
Despite the fact that it might make me look like a sucker in Jesse Livermore’s eyes, here are a few quotes I’ve enjoyed – quotes I think even Jesse might have liked and approved of:
A banker: the person who lends you his umbrella when the sun is shining and wants it back the minute it rains.
Remember your goal is to trade well, not to trade often.
The conduct of successful business merely consists in doing things in a very simple way, doing them regularly and never neglecting to do them.
William Hesketh Lever
There is a great difference between the best company and the best stock.
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.
If you bet on a horse, that’s gambling. If you bet you can make three spades, that’s entertainment. If you bet cotton will go up three points, that’s business. See the difference?