90 Quotes About Trading-psychology

People like to risk pennies to win dollars.

The actual risk is the permanent loss of capital or, to a lesser extent, a sub-par return. Temporary volatility in market price is not a real risk.

The decision to invest in an asset class must be rational, not emotional.

The outcome of an investment does not make it right or wrong.

Trading is not only a zero-sum game but an aggregate negative after deducting the trading cost and research expenses. Somebody’s gain is somebody’s loss, so the professional traders win the game because they have significant advantages over retail traders.

I know people who repeatedly jump from one guru to the next in search of the Holy Grail of trading. Of course, it doesn’t exist, but you need to know this fact to stop looking for it.

It is challenging for a human brain to distinguish between noises and threats if a considerable value is at stake.

Occasionally, the stock market goes down dramatically and creates a short window of opportunity to buy stocks at deep discounts. However, to act upon it, you need to beprepared before it happens.

Investing is not a war or revolution or anything close to this. You are in this business to make an honest profit.