Words of Wisdom

A rational trader can make money by remaining calm and following his rules. Around him, the crowd chases rallies, hard with greed.

People are more likely to be rational when alone, and grow more impul-sive when they join crowds.

The more emotional a market, the less efficient it is, and inefficiency creates profit opportunities for calm, disciplined traders.

It is hard to make money in flat markets because your opponents are relatively calm. Rational people make dangerous enemies.

It is easier to take money from traders who are excited by a fast-moving trend because emotional behavior is more primitive and easier to predict. To be a successful trader you must keep your cool at all times and take money from aroused amateurs.

Markets are more efficient during flat trading ranges, when people are apt to use their heads. They grow less efficient during trends, when people become more emotional.

The more active the market, the more traders are emotional. Rational individuals can become a minority, surrounded by those with sweaty palms, pounding hearts, and clouded minds.

Prices reflect intelligent behavior of rational investors and traders, but they also reflect screaming mass hysteria.

Emotional traders do not pursue their best long-term interests. They are too busy savoring the adrenaline rush or too twisted in fear, desperate to extract their fingers from a mouse-trap.

Trad-ing and investing are partly rational and partly emotional. People oft en act on an impulse even if they harm themselves in the process of doing so.

The original plan to buy may have been rational, but implementing it created an emotional storm.

When the markets open on Monday, the best laid plans of mice and men get ripped up in the sweaty palms of traders.

Most traders can be rational on a fine weekend when the markets are closed. They calmly study their charts and decide what to buy and sell, where to take profits, and when to cut losses.

A man who likes peeing against the wind has no right to complain about his cleaning bills.

All of us are smart after the fact; very few are smart early in the game, and only the tiniest percentage has the emotional strength to make a large bet on their vision and hold on to it. Those who can do this consistently, like Warren Bu ffett or Peter Lynch, are hailed as superstars.

Investors profit by recognizing new trends in the economy and buying into them before the majority wakes up to opportunities.

A knowledgeable investor can earn huge percentage gains by holding his position without being terribly active.

I find that the percentage of successful traders is higher among women. They tend to be less arrogant, and arrogance is a deadly sin in trading.

My eyes are an ocean in which my dreams are reflected. ~ Anna M. Uhlich

There are two rules for success: First, never tell everything you know. ~ Roger H. Lincoln

Curiosity is the wick in the candle of learning. ~ William Arthur Ward

God made relatives. Thank God we can choose our friends.

Money glitters, beauty sparkles, and intelligence shines.

When you are in light, everything will follow you. But when you enter dark, even your own shadow will not follow you. That is life.

Remember that happiness is a way of travel, not a destination.

Who has seen the wind�HNeither I nor you: But when the leaves hang trembling,The wind is passing through.Who has seen the wind?Neither you nor I:But when the trees bow down their heads,The wind is passing by. ~ Christina Rossetti

Sometimes the questions are complicated and the answers are simple.

If we avoid the losers, the winners will take care of themselves.

Being too far ahead of your time is indistinguishable from being wrong.

It��s our goal to do as well as the market when it does well and better than the market when it does poorly.