Famous quotes

Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway.
--Warren Buffett--

The final phase in a bull move is an accelerated runaway near the top. In this phase, the market always makes you believe that you have underestimated the potential bull market. The temptation to continue pyramiding your position is strong as profits have now swelled to the point that you believe your account can stand any setback. It is imperative at this juncture to take profits on your pyramids and reduce the position back to base levels. The base position is then liquidated when it becomes apparent that the move has ended.

Assimilate into your every bones a set of trading rules that works for you.

Take a trading break. A break will give you a detached view of the market and a fresh look at yourself and the way you want to trade for the next several weeks.

Every sunken ship has a chart.

Prices are made in the minds of men, not in the soybean field: fear and greed can temporarily drive prices far beyond their so called real value.

Don't sell a quiet market after a fall because a low volume sell-off is actually a very bullish situation.

Volume and open interest are as important to the technician as price.

As a rule of thumb good trend lines should touch at least three previous highs or lows. The more points the line catches, the better the line.

It is a safe bet that the money lost by (short term) speculation is small compared with the gigantic sums lost by those who let their investments 'ride'. Long term investors are the biggest gamblers as after they make a trade they often times stay with it and end up losing it all. The intelligent trader will . By acting promptly-hold losses to a minimum.